The Life Insurance Corporation of India has launched a new product known as LIC Smart Pension Plan with various attractive features. These features provide many benefits such as financial security, and social impact, and this plan addresses the needs of retirees.
The attractive features of the LIC Smart Pension Plan which are Non-Participating (Non-Par), Non-Linked, Individual/Group, Savings, Immediate Annuity Plan, etc can be a reason for the growth in India’s pension and retirement savings. This pension plan targets domestic sales from 18th February and it provides more secure ways to save for retirement.
LIC Smart Pension Plan
The LIC Smart Pension Plan is a new product launched by the Life Insurance Corporation of India(LIC). This pension plan is designed as a ‘Non-Participating (Non-Par), Non-Linked, Individual/Group, Savings, Immediate Annuity Plan’.
As the demand for safe retirement and pension plans is increasing day by day, this plan is specifically designed for the domestic market from 18 January 2025. The LIC’s leadership position in India’s pension and retirement savings industry is anticipated to grow because of the launch of the LIC Smart Pension Plan. Reliable financial products demand is also increasing to guarantee a more secure future as the population ages.
By providing a simple and safe method of saving for retirement, this plan intends to address that need. The LIC is continuously focusing on the development and expansion of their product portfolio to satisfy the growing needs of the population. The LIC Smart Pension Plan is available for sale from 18 February 2025.
Why should people have to choose the LIC Smart Pension Plan?
The choice of LIC Smart Pension Plan can be beneficial because of several reasons such as LIC’s recent performance and reliance on the market. LIC has shown a remarkable reliance despite the changes which they have faced recently. The company has faced a 9% decline in net premium income and a 14% drop in first year premiums.
The company has also reported a 17% increase in profit after tax which is about ₹11,056 crore. This was assessed due to the reduction in welfare expenses and employee compensation. This shows a strong financial health commitment which is necessary for pension providers. LIC has also managed its leadership despite competitive market pressure and challenges.
The company has gained investor confidence after their shares closed at ₹765.40 which is 1% on BSE. This 14% year on year fall in premiums in January has enhanced the peace of policyholders’ minds because they know that their pension plans are in a well regarded company.
How is the LIC Smart Pension Plan different from others?
The LIC Smart Pension Plan provides many types of benefits including financial security, market confidence, income, and an Immediate Annuity Plan. This pension plan is different because it caters to the needs of policyholders.
- Immediate Annuity Plan: One of the most crucial benefits is that it provides an Immediate Annuity Plan in retirement years which results in financial stability, peace of mind, and ra eduction in financial worries. This is provided immediately after the lumpsum investment.
- Financial Security: A regular and steady income during retirement years can be a source of less stress.
- Non Participating and Non Linked: This plan is Non-Participating and non-linked, it means policyholders will not be responsible to participate in the profits or losses of the insurance company.
What will be the future of the LIC Smart Pension Plan?
The future of the LIC Smart Pension Plan looks promising because of the growing demand of retirement savings in India. LIC Smart Pension Plan offers a more secure and reliable way to save for retirement. It fulfills the growing demands of customers so it’s a chance for LIC to expand their customer base and market leadership position.
The attractive features of this plan which are (Non-Participating (Non-Par), Non-Linked, Individual/Group, Savings, and Immediate Annuity Plan) provide more stability to customers. If we talk in short, then it’s not wrong to say that the future of this plan will be bright. This strong market demanding plan has unique features which fulfill the commitment of social impact and financial stability.