LIC Smart Pension (Plan No. 879, UIN 512N386V01) is a non‑linked, non‑participating, single‑premium immediate annuity plan for individual or group lives, offering multiple annuity options for single and joint life.

Plan type and core idea

• Single‑premium, immediate annuity: You pay a one‑time purchase price; pension starts right away in the chosen mode (monthly/quarterly/half‑yearly/yearly).
• Non‑par, non‑linked: No market link and no bonuses; annuity rate is locked at inception and guaranteed for life.
• Individual/Group version: Can be used for retail retirement planning and for group schemes (e.g., employer or superannuation exits).

Key features

• Wide annuity choice: Multiple options for single‑life and joint‑life annuities, including variants with and without Return of Purchase Price (ROP) and options with increasing annuity.
• Lifetime income: Annuity is payable for as long as the relevant life (or last survivor under joint‑life) is alive.
• Return‑of‑purchase‑price options: Several options refund 100% of the purchase price to nominee on death of annuitant/last survivor.
• Flexible modes: Annuity can be paid monthly, quarterly, half‑yearly or yearly; minimum annuity is ₹1,000 (monthly), ₹3,000 (quarterly), ₹6,000 (half‑yearly) and ₹12,000 (yearly).
• Incentives: Enhanced annuity rates for higher purchase prices and for existing LIC policyholders / nominees of deceased LIC policyholders.
• Liquidity and loan:
  • Liquidity options (partial/full withdrawal) under specified conditions.
  • Loan facility available after 3 months or end of free‑look, whichever is later, subject to limits.

Eligibility and basic parameters

Summarised from LIC press release and brochures; exact grid should be taken from LIC’s official Smart Pension Sales Brochure/CIS.

• Entry age:
  • Minimum: 18 years.​
  • Maximum: Depends on annuity option; typically ranges from 65 up to 100 years for some options.
• Premium payment: Single premium only (purchase price).
• Minimum annuity (per mode):
  • ₹1,000 per month, ₹3,000 per quarter, ₹6,000 per half‑year, ₹12,000 per year.
• Minimum purchase price: Whatever is required to secure the minimum annuity above; illustrations often show slabs like ₹1 lakh, ₹5 lakh, etc.
• Maximum purchase price: No explicit upper cap; subject to underwriting/AML.

Annuity and death‑benefit options (high‑level)

The exact list of options is in LIC’s brochure, but broadly they include:

• Life annuity without ROP: Highest annuity; payments stop on death, no refund of purchase price.
• Life annuity with ROP: Lower annuity; on death, 100% of purchase price is paid to nominee.
• Joint‑life annuity (with and without ROP): Pension continues to spouse/second annuitant after first death as per option; ROP variants refund purchase price on last death.
• Increasing annuity options: Annuity increases at a fixed rate each year to partly offset inflation (starting annuity is lower).

Under most ROP or structured options, death benefit is either return of purchase price or a defined amount linked to purchase price minus annuity already paid, depending on the option chosen.

Who should consider LIC Smart Pension?

• Individuals nearing or at retirement who want immediate, guaranteed income from a lump sum (EPF, NPS corpus, sale proceeds, etc.) with more flexibility than older annuity products.
• Couples wanting joint‑life annuity so that pension continues for the surviving spouse and, in many options, capital returns to heirs on last death.
• NPS subscribers or group scheme members who must annuitise part of their corpus and prefer LIC as annuity provider.

Example: A 60‑year‑old invests a lump sum in Smart Pension under joint‑life ROP option; annuity starts immediately, continues to spouse if he dies first, and after both are gone, their children receive 100% of the original purchase price.