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LIC's Smart Pension

Life Insurance Corporation of India · LIC & Life Insurance Policies

An immediate annuity with a wide range of options, including liquidity, advance annuity and annuity accumulation.

Premium set by LIC Not published as a number here — it varies by provider, tenure or plan.

Premium depends on age, term and sum assured — use LIC's calculator for your figure

Check the official page

Source LIC — plan brochure

licindia.in/web/guest/pension-plan

Read from LIC's sales brochure "Smart Pension Individual_Sales Brochure Eng.pdf". Use LIC's calculator for a premium at your age.

How it works

LIC's Smart Pension is a lic & life insurance product from Life Insurance Corporation of India, in the guaranteed category: fixed by contract. An immediate annuity with a wide range of options, including liquidity, advance annuity and annuity accumulation.

Because the return type is guaranteed, the questions that matter most are: Is the rate fixed for the whole tenure, or revised during it? Who is actually promising to pay, and what happens if they don't?

  • A pension with more flexibility than a plain annuity
  • Converting a corpus with optional withdrawal features

Key facts

Provider
Life Insurance Corporation of India
UIN
512N386V01
Source
LIC — plan brochure ↗ https://licindia.in/web/guest/pension-plan
Rate
Premium set by LIC ↗
Category
LIC & Life Insurance Policies
Minimum investment
— Premium depends on age, term and sum assured — use LIC's calculator for your figure
Tenure
Lifetime
Payout
Annuity for life, yearly to monthly
Eligibility
Individuals or groups; single or joint life.
Getting your money back
Depends on the options chosen; some allow a lump sum at a cost to the annuity.
Protection
Annuity rates guaranteed at inception.
Tax
Premiums may qualify for a deduction under Section 80C. Maturity proceeds are exempt only if the policy meets the conditions in Section 10(10D), including the aggregate premium limit — check the current rules for the year you buy.

What can go wrong

  • The pension is fixed in rupees and does not rise with prices.
  • Choosing a liquidity option permanently lowers the pension.
  • The rate is locked; later, better rates cannot be taken.

Before you decide anything

  • Which options are included in the quote you receive
  • The effect of the liquidity option on your pension

These are questions to take to the provider, not a checklist that makes a product suitable. Whether something fits your situation is a decision only you — or an adviser you choose — can make.

Official sources

These link to the regulator or provider where the rules for this type of product are set out. They are the pages worth checking before you act, because they are the ones that get updated.

Other products in this category

The same rules and the same kind of trade-offs, described the same way.