LIC Smart Pension Plan No. 879

Are You Ready to Transform Your Savings into a Lifelong Income Stream?

Welcome to Ashuram Insurance Expert. As your trusted local advisor serving since 1990, we understand that true financial independence during your golden years comes from stability and guarantees. Today, we are bringing you a comprehensive, easy-to-understand guide on one of the most advanced immediate retirement solutions available in India: the LIC Smart Pension Plan No. 879.

Read on to discover how this powerful single-premium plan works, explore its massive range of customizable annuity options, and learn how our local expertise can help you design the perfect pension strategy.

What is LIC Smart Pension Plan 879?

LIC's Smart Pension (UIN: 512N386V01) is a Non-Participating, Non-Linked, Individual, Savings, Immediate Annuity Plan.

To help you understand exactly what this means for your hard-earned money:

• Non-Linked: This is NOT a market-linked plan. Your money is completely insulated from the stock market. You do not bear any investment risk.
• Non-Par: This plan does not participate in the yearly profits of the corporation. Instead, the annuity (pension) rates are guaranteed and fixed at the very inception of the policy.
• Immediate Annuity: This is NOT a deferred plan where you have to wait years for your payouts to begin. Your pension starts immediately after you make a one-time lump sum payment.

This plan offers an incredible range of annuity options for both Single Life and Joint Life, ensuring that your specific family needs are perfectly met.

Key Features of the Plan

The LIC Smart Pension Plan stands out because it goes far beyond a basic pension policy. Its key features include:

• Single Premium Convenience: You only pay once. No future premium burdens.
• Immediate Start: Your lifelong income stream begins right away.
• Extensive Customization: You can choose from a wide range of highly specific annuity options (Options A to J).
• Joint Life Flexibility: You can cover yourself and your spouse, or any lineal descendant/ascendant (like a parent, child, grandparent, grandchild, sibling, or parent-in-law).
• Innovative Special Options: The plan offers unique features like a Liquidity Option, Advanced Annuity Option, and an Annuity Accumulation Option to handle emergency cash needs.
• Flexible Payout Modes: Choose to receive your pension yearly, half-yearly, quarterly, or monthly.

How This Plan Works

The mechanics of this plan are designed for absolute simplicity.

1. Invest: You make a one-time lump-sum investment, known as the Purchase Price.
2. Choose: You select your preferred Annuity Option (how you want the pension to behave) and your payment frequency (e.g., monthly).
3. Receive: Your pension starts immediately in arrears. This means if you choose a monthly payout, your first pension check arrives exactly one month after your policy starts.

Detailed Annuity Options: Tailor Your Pension

Unlike basic pension plans, the LIC Smart Pension Plan 879 offers an extensive list of choices. Because the annuity option once chosen cannot be altered, it is vital to understand these categories:

Single Life Annuity Options (For One Person)

• Option A (Life Annuity): You receive a regular pension for as long as you live. On death, payments cease, and nothing is returned.
• Options B1, B2, B3, B4 (Annuity Certain): Your pension is guaranteed to be paid for a specific period of 5, 10, 15, or 20 years, even if you pass away during this time (paid to your nominee). If you survive the period, the pension continues for the rest of your life.
• Options C1, C2 (Increasing Annuity): To fight inflation, your pension amount increases at a simple rate of 3% (Option C1) or 6% (Option C2) every single year for your entire life.
• Option D (Return of Balance): You get a lifelong pension. On death, the nominee receives the original Purchase Price MINUS all the pension amounts already paid out.
• Options E1 to E5 (Early Return of Purchase Price): These are highly unique. You get a lifelong pension, plus LIC returns a portion of your original investment while you are still alive! For example, Option E2 returns 100% of your Purchase Price when you reach age 75, while your pension still continues. Option E5 returns 5% of your Purchase Price every year between the ages of 76 and 95.
• Option F (Life Annuity with Return of Purchase Price): You receive a lifelong pension. Upon your death, a full 100% of your original Purchase Price is paid to your nominee.

Joint Life Annuity Options (For Two People)

• Options G1, G2: A joint pension. On the death of the primary annuitant, the secondary annuitant receives either 50% (Option G1) or 100% (Option G2) of the pension for the rest of their life.
• Options H1, H2, I1, I2 (Increasing Joint Life): A joint pension that increases every year by 3% or 6% to fight inflation, with 50% or 100% continuing to the secondary annuitant after the primary's death.
• Option J (Joint Life with Return of Purchase Price): The most comprehensive option. You receive a 100% pension as long as either of you is alive. On the death of the last survivor, a full 100% of the Purchase Price is returned to the nominee.

Options Available for Payment of Death Benefit

If you select an annuity option that includes a death benefit (like Options D, E1-E5, F, and J), you have incredible control over how your nominee receives the funds. You can choose one of the following payout methods:

• Lump Sum Death Benefit: The entire death benefit is paid to the nominee at once.
• Annuitisation of Death Benefit: The death benefit is used to purchase an Immediate Annuity (a new pension plan) for your nominee, providing them with a steady income.
• In Installments: The death benefit can be paid in regular installments over a chosen period of 5, 10, or 15 years, ensuring your family receives structured financial support over time.

Special Options: Unmatched Financial Flexibility

What truly makes this the "Smart" pension plan are these three advanced features designed to give you access to cash when you need it most.

1. Liquidity Option (Emergency Cash)

Available strictly under Option F and Option J. After 5 years from the start of the policy, you can liquidate a portion of your policy for an immediate lump sum. You can do this up to 3 times, withdrawing a total of up to 60% of your Purchase Price. After you withdraw the lump sum, your future pension and death benefits will be reduced proportionally.

2. Advanced Annuity Option

Available strictly under Option J. If one of the covered individuals passes away, the surviving partner might need immediate funds for medical bills or adjustments. This option allows the survivor to withdraw the discounted cash value of up to 5 years of future pension payments as an immediate upfront lump sum.

3. Annuity Accumulation Option

Available under all options. If you do not need your pension money right now (for example, you are still working part-time), you can choose to defer and accumulate your pension payments for a block of 5 consecutive years. LIC will hold this money and grow it at an accumulation rate. At the end of the 5 years, you receive a large, accumulated lump sum.

Eligibility Conditions

To secure this immediate pension, applicants must meet the following criteria:

• Minimum Age at Entry: 18 years (Last Birthday). Note that some specific options (like E3, E4) require higher minimum ages.
• Maximum Age at Entry: Up to 100 years for Option F, 85 years for most other options.
• Minimum Purchase Price: ₹1,00,000 (One Lakh). Special exception: For a dependent person with a disability (Divyangjan), the minimum is just ₹50,000.
• Minimum Annuity: The policy must generate at least ₹1,000 per month, ₹3,000 per quarter, ₹6,000 per half-year, or ₹12,000 per annum.
• Maximum Purchase Price: No Limit, subject to underwriting guidelines.

Important Things to Understand Before Buying

As your local advisor, transparency is our priority. Before you commit to a lifelong annuity, you must understand these critical points:

• Surrender Loss Warning: The insurance policy being a long-term contract should be taken from the long-term perspective of continuing the policy. While there is a provision for surrender under certain options (D, E1-E5, F, J), there can be a significant financial loss on surrender.
• Annuity Option Cannot Be Changed: The annuity option (A to J) must be chosen carefully at the start. Once chosen, it cannot be altered later under any circumstances.
• No Bonus (Non-Par Plan): This is a non-participating plan. It does not earn any yearly bonuses or a share in the corporation's profits. The returns are fixed and guaranteed at the start.

Loan and Surrender Rules

Because an immediate annuity provides lifelong income, liquidity rules are defined clearly:

• Surrender Rules: The policy can be surrendered at any time during the policy term, but ONLY if you have chosen Annuity Options D, E1 to E5, F, or J. If you chose a different option (like Option A or C), the policy cannot be surrendered.
• Policy Loan: A loan facility is available at any time after three months from the completion of the policy (or after the free-look period). This is a massive benefit for emergencies. Loans are only available under Options E1 to E5, F, and J. The loan interest is conveniently recovered directly from your ongoing annuity payouts.

Comparison Hint: Smart Pension vs. Saral Pension

If you are researching LIC plans, you might wonder about the difference between the Smart Pension Plan and the Saral Pension Plan. While both provide immediate guaranteed income, the Saral Pension plan is a basic, standardized product offering only two simple options, ideal for those seeking extreme simplicity.

The Smart Pension Plan 879, on the other hand, offers a massive range of options (A to J) and exclusive, advanced flexibility. It includes the Liquidity Option, Advanced Annuity Option, and the ability to cover extended family members in a joint life policy. Smart Pension is designed for individuals who want detailed control over exactly how their pension and death benefits are structured.

Local Service Section: Serving Our Regional Communities

While our primary office is centrally located near the Main Bus Stand Road in Bhadra (335502), Hanumangarh, Rajasthan, Ashuram Insurance Expert is deeply committed to serving the hardworking agricultural and business communities across our wider region.

We understand that securing a retirement income requires careful, face-to-face financial planning. Our comprehensive advisory services extend seamlessly to areas like Raslana and Mundriabara. We know that traveling into Bhadra city for complex insurance paperwork can be difficult for retired farmers and local business owners. That is why we provide dedicated, localized support to ensure that families in these vital agricultural belts can easily secure their pensions. Whether you need a fresh consultation on immediate annuities in Kanau or require assistance with your documents in Malsisar, our trusted services reach you right where you are.

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Do not leave your golden years to chance. Secure an immediate, guaranteed lifelong pension with the most trusted life insurance corporation in India. You may contact Ashuram Modi for personalized LIC guidance in Bhadra. You can explore our complete range of LIC services in Bhadra to find the perfect retirement or protection solution for your needs. Alternatively, learn how we assist families during claim settlements to ensure everything is processed smoothly.

Frequently Asked Questions (FAQs)