LIC Best Pension Plan: Life Insurance Corporation of India’s plans are quite popular, and the Smart Pension Plan promises regular income. It can be purchased as a single or joint option.
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LIC Best Pension Plan: The country’s largest insurance company, Life Insurance Corporation of India (LIC), offers a variety of plans for all age groups. Some of these also promise regular income, which can be helpful in maintaining financial health after retirement. In this regard, the LIC Smart Pension Scheme is quite popular. It is an immediate annuity plan that starts earning pension money after a one-time lump sum investment and continues to be received throughout life.
Best Plan for Guaranteed Income
LIC’s Smart Pension Plan is especially suitable for investors who plan to invest for guaranteed and regular income while staying away from the fluctuations of the stock market. It is a non-linked and non-participating LIC plan, meaning it has zero market risk (Zero Risk Pension Plan). The minimum annuity purchase amount in the LIC Smart Pension Scheme is ₹1 lakh, while there is no maximum investment limit, meaning you can invest as much as you wish.
Pension Fixed at Policy Purchase
Pension in the Smart Pension Plan is fixed at policy purchase and is paid for life. You can open this policy as a single or joint partner. Policyholders can choose monthly, quarterly, half-yearly, or annual pension options based on their needs.
Additionally, options include increasing the pension by 3% or 6% annually, or receiving the invested amount back after death. This scheme is useful for retired employees, private employees, and senior citizens who want a monthly income after retirement.
How will one earn Rs 10,880 per month?
Calculating an income of more than Rs 10,000 per month under the LIC Smart Pension Plan is quite simple. Investors will need to invest Rs 20 lakh in lump sum upon purchasing this plan, and according to the LIC calculator, this will yield Rs 1,36,000 annually.
Dividing this on a half-yearly basis results in Rs 66,640 and on a quarterly basis, Rs 32,980. Dividing this on a monthly basis results in Rs 10,880 per month. However, the guaranteed income depends on age and the option chosen.
