LIC's amazing scheme...

The country's largest insurance company, Life Insurance Corporation of India (LIC), offers various plans for all age groups. Some of these also promise regular income and can help maintain financial health after retirement. The LIC Smart Pension Plan is very popular in this regard. It is an immediate annuity plan, which starts earning pension income after a one-time unit investment and continues throughout life.

Best plan for guaranteed income

LIC's Smart Pension Plan is considered ideal especially for investors who plan to invest for guaranteed and regular income, staying away from stock market fluctuations. It is a non-linked and non-participating LIC plan, which means it has zero market risk (zero risk pension plan). The minimum annuity purchase in LIC Smart Pension Plan is fixed at ₹1 lakh, while there is no maximum investment limit, meaning you can invest as much as you want.

Pension is decided upon policy purchase

In a smart pension plan, the pension is decided at the time of policy purchase and is paid throughout life. You can open this policy alone or jointly with your spouse. The policyholder can choose from monthly, quarterly, half-yearly or annual pension options, depending on their needs.

Additionally, the options include increasing the pension by 3% or 6% annually or getting back the invested amount after death. This plan is useful for retired employees, private employees and senior citizens who want a monthly income after retirement.

How will someone earn Rs 10,880 per month?

Calculating a monthly income of more than Rs 10,000 per month under the LIC Smart Pension Scheme is quite easy. Investors will need to invest Rs 20 lakh at a time after buying this plan, and according to the LIC calculator, this will give Rs 1,36,000 per year.

 Dividing this on a half-yearly basis gives Rs. 66,640 and on a quarterly basis gives Rs. 32,980. Dividing this on a monthly basis gives Rs. 10,880. However, the guaranteed income depends on the age and the option chosen.

(Note: Before making any investment or taking any plan or scheme, please consult your advisor.)