LIC’s Smart Pension 879

 LIC’s Smart Pension 879 is a non-linked, non-participating, single premium immediate annuity plan designed to provide guaranteed lifelong pension income with a variety of options suited for different retirement income needs. It offers flexible annuity options including single life, joint life, increasing annuity, return of purchase price, and more, ensuring stable financial security in retirement.​

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What is LIC’s Smart Pension 879?

LIC Smart Pension 879 is a retirement-focused immediate annuity product where the policyholder pays a one-time premium (purchase price) and starts receiving guaranteed pension payments immediately. The plan offers multiple annuity options addressing diverse needs like inflation protection through increasing annuity payments, joint life options for spouse or dependents, and options with return of purchase price to nominees post-death.​

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Key Features

• Single Premium Payment: One-time lump sum payment initiates pension payouts immediately.​

• Multiple Annuity Options: Including immediate life annuity, joint life annuity, increasing annuity, guaranteed income for fixed periods, and options with return of purchase price.​

• Guaranteed Pension Income: Receive guaranteed pension payments for life or for a guaranteed fixed period plus life thereafter.​

• Payment Frequency: Choose monthly, quarterly, half-yearly, or yearly pension payouts.​

• Joint Life and Return of Purchase Price Options: Cover spouse or family with continued income and return of invested lump sum to nominees.​

• Inflation Protection: Certain options offer increasing annuity payments by 3% or 6% annually to counteract inflation.​

• Liquidity Options: Available under specific annuity options allowing lump sum withdrawals after 5 years, subject to limits.​

• Tax Benefits: Premium qualifies for deduction under Section 80C and pension income is taxable as per income tax laws.​

• NPS Subscribers: Can purchase this plan complying with PFRDA regulations.​

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Eligibility Criteria

• Minimum Entry Age: 18 years.​

• Maximum Entry Age: Generally up to 85 years; 100 years for specific options​

• Minimum Purchase Price: ₹1,00,000 (subject to minimum annuity payout requirements like ₹1000/month).

• Maximum Purchase Price: No upper limit.​

• Joint Life Eligibility: Spouse, parents, children, grandparents, siblings, parent-in-law eligible under joint life options.​

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Annuity Options

• Option A: Life Annuity (single life, no return of purchase price).

• Options B1 to B4: Guaranteed income for 5, 10, 15, or 20 years plus life annuity.

• Options C1 and C2: Increasing annuity by 3% or 6% annually.

• Options D, E1-E5: Life annuity with return of purchase price under varying conditions.

• Options F, G1, H1, I2, J: Various joint life annuity options with different combinations of increasing annuities and return of purchase price.​

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Annuity Calculation and Payment

• Annuity amount depends on age, purchase price, selected option, and payment frequency.

• Available annuity payment modes: monthly, quarterly, half-yearly, yearly.

• The plan includes a calculator to estimate annuity payouts based on inputs.​

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Benefits

• Secure and guaranteed lifelong income to meet living expenses post-retirement.

• Multiple annuity options providing flexibility to match personal financial goals.

• Inflation-linked annuities help safeguard against rising costs.

• Options for joint life provide family income security.

• Return of purchase price options protect invested capital.

• Liquidity options under specific annuity plans enhance financial flexibility.

• Attractive for individual investors and NPS subscribers.​

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Tax Benefits

• Premium payment eligible for deduction under Section 80C.

• Pension income taxed as per individual tax brackets.

• Tax advantages make it a valuable component of retirement planning.​

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How to Buy LIC Smart Pension 879

• Available online at LIC’s official site.

• Purchase involves submitting personal details, proof of age, identity, and payment via online modes.

• Medical tests may be necessary depending on age and purchase price.

• Policy documents and annuity payment details communicated via LIC channels.​

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Who Should Buy LIC Smart Pension 879?

• Retirees seeking immediate and guaranteed pension income.

• Individuals looking for options to secure income for self and dependents.

• Those preferring fixed income unaffected by market risks.

• NPS subscribers wanting annuity phase retirement coverage.​

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Conclusion

LIC's Smart Pension Plan 879 is a versatile, secure, and reliable pension solution offering numerous annuity options with guaranteed income, return of purchase price, joint life options, and inflation protection. Its single premium immediate payout structure suits retirees desiring financial stability with flexible income and legacy planning features. With LIC's trusted legacy, it is an excellent choice for secure and smart retirement income planning.