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LIC Smart Pension Plan 879
LIC Smart Pension Plan 879 is a single premium, immediate annuity plan specifically designed to provide guaranteed lifetime income. It also offers various annuity options, including joint and single life, with flexible payout terms and choices of death benefit. LIC plan 879 is for individuals looking a secure and predictable income flow after retirement.
Tax saving under Sec 80C & 10(10D)^
Guaranteed maturity with life cover for securing family's future
Sovereign guarantee as per Sec 37 of LIC Act
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- LIC Smart Pension- 879
Let's read about the LIC Smart Pension Scheme, its features, benefits, and how to buy.
LIC Smart Pension Plan 879- An Overview
LIC Smart Pension plan is an immediate annuity plan by LIC of India that offers a number of annuity options for joint life as well as single life annuity types. The joint life annuity option encourages joint savings with certain family members of the policyholder. The annuity rates under all annuity options are guaranteed at the policy’s inception. With this plan, policyholders can secure their future by paying a lump sum amount to receive a fixed and regular guaranteed pension for life. The Smart Pension plan LIC is safe from market fluctuations and does not change the promised benefits as per LIC’s performance as it is not linked, nor profit-participating by nature. The LIC Smart Pension plan can easily be purchased offline as well as online.
Key Features of LIC Smart Pension Plan 2025
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LIC Smart Pension scheme is a single-premium immediate annuity plan offering various annuity options to cater to different financial needs.
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Single Life and Joint Life Annuity options for flexibility in securing your retirement.
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Four annuity payment modes are available: monthly, quarterly, half-yearly, and yearly. You can select the one that best suits your needs.
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The plan offers three death benefit payment options: You can choose among Annuitisation, Instalments, and Lump sum, depending on your preference.
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You can customise the plan according to your financial objectives by choosing Advanced Annuity, Liquidity, and Annuity Accumulation Option.
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In addition to receiving a higher purchase price incentive, existing policyholders and nominees of deceased policyholders receive special incentives.
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The Smart Pension plan LIC provides partial or full withdrawal options.
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Special incentive of 3% for NPS subscribers.
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A disabled dependent can also be covered under this plan.
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Loan facility is provided keeping the policyholder’s liquidity needs in mind.
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Tax benefits are provided u/s 80C of the Income Tax Act.
LIC Smart Pension Plan 879: Eligibility Criteria
| Parameters | Criteria |
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 100 years (Varies as per Annuity Options) |
| Minimum Purchase Price | Rs. 1,00,000/- Rs. 50,000 if purchased for a disabled dependent |
| Maximum Purchase Price | No Limit (subject to approval as per Board Approved Underwriting Policy) |
| Minimum Annuity | Monthly - Rs. 1,000 per month Quarterly - Rs. 3,000 per quarter Half-Yearly- Rs. 6,000 per half-year Yearly- Rs. 12,000 per annum |
| Maximum Annuity | No Limit |
| Premium Payment Mode | Single Premium |
Benefits of the LIC Smart Pension Plan 879 Under Different Annuity Options
LIC Smart Pension plan provides a comprehensive range of benefits to cater to the varying needs of annuitants, offering them financial security in their retirement years. Below are the key benefits provided with the LIC Smart Pension Plan 879 under all the annuity options provided in the plan:
Death/Survival Benefit:
Under the Smart Pension plan LIC offers death or survival benefits that are paid differently under the following annuity options:
| Annuity Option | Payouts Upon Survival and Death | |
| Single Life Annuity | ||
| Option A | Life Annuity. | An annuity will be paid in arrears till the annuitant is alive. No payments after the annuitant's death. |
| Option B1 | Annuity Certain for 5 Years & Life Thereafter | An annuity will be paid in arrears till the annuitant is alive.
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| Option B2 | Annuity Certain for 10 Years & Life Thereafter | An annuity will be paid in arrears till the annuitant is alive. If the annuitant dies within the first 10 years, the annuity payments will continue to be paid to the nominee for the remaining 10 years. After 10 years, the payments stop. If the annuitant dies after 10 years, the policy will terminate, and no annuity payments will be made. |
| Option B3 | Annuity Certain for 15 Years & Life Thereafter | An annuity will be paid in arrears till the annuitant is alive.
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| Option B4 | Annuity Certain for 20 Years & Life Thereafter. | An annuity will be paid in arrears till the annuitant is alive.
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| Option C1 | Life Annuity Increasing at 3% p.a. | The annuitant will receive annuity payments in arrears till they are alive. The annuity amount will increase by 3% per year for each completed policy year, boosting the payments over time. If the annuitant passes, the annuity payments will stop immediately, and no further benefits will be payable. |
| Option C2 | Life Annuity Increasing at 6% p.a. | The annuitant will receive annuity payments in arrears till they are alive. The annuity amount will increase by a simple rate of 6% per year for each completed policy year, boosting the payments over time. If the annuitant passes away, the annuity payments will stop immediately, and no further benefits will be payable. |
| Option D | Life Annuity with Return of Balance Purchase Price | The annuitant will receive annuity payments in arrears till they are alive. If the annuitant passes away, the annuity payments will stop immediately, and the nominee(s) will receive a Death Benefit equal to the Purchase Price balance [Purchase Price Less (sum of all annuity payments made till the date of death of the Annuitant)]. If the total sum of annuity payments already made exceeds the original Purchase Price, no death benefit will be payable to the nominee(s). |
| Option E1 | Life Annuity with 50% Return on Purchase Price after age 75 | An annuity will be paid in arrears till the annuitant is alive. Suppose the annuitant survives the policy anniversary on or after age 75. In that case, they will receive an early return of 50% of the Purchase Price in addition to their regular annuity payments. Upon the annuitant's death, the annuity payments will stop immediately, and a Death Benefit will be payable to the nominee(s). |
| Option E2 | Life Annuity with 100% Return on Purchase Price after age 75 | An annuity will be paid in arrears till the annuitant is alive. If the annuitant survives the policy anniversary on or after reaching age 75, they will receive an early return of 100% of the purchase price in addition to their regular annuity payments. Upon the annuitant's death, the annuity payments will stop immediately, and a Death Benefit will be payable to the nominee(s). |
| Option E3 | Life Annuity with 50% Return on Purchase Price after age 80 | An annuity will be paid in arrears till the annuitant is alive. If the annuitant survives the policy anniversary on or after reaching age 80, they will receive an early return of 50% of the purchase price in addition to their regular annuity payments. Upon the annuitant's death, the annuity payments will stop immediately, and a Death Benefit will be payable to the nominee(s). |
| Option E4 | Life Annuity with 100% Return on Purchase Price after age 80 | An annuity will be paid in arrears till the annuitant is alive. If the annuitant survives the policy anniversary on or after reaching age 80, they will receive an early return of 100% of the purchase price in addition to their regular annuity payments. Upon the annuitant's death, the annuity payments will stop immediately, and a Death Benefit will be payable to the nominee(s). |
| Option E5 | Life Annuity with 5% Return of Purchase Price from ages 76 to 95 | An annuity will be paid in arrears till the annuitant is alive. On each policy anniversary from age 76 to age 95, the annuitant will receive an additional 5% of the Purchase Price as an Early Return, in addition to their regular annuity payments. If the annuitant passes away, the annuity payments will stop immediately. The Death Benefit will equal the Purchase Price minus any early return of the Purchase Price that has already been paid. If the annuitant has already received 100% of the Purchase Price in Early Returns before their death, no additional benefit will be payable on death. |
| Option F | Life Annuity with Return of Purchase Price | An annuity will be paid in arrears till the annuitant is alive. Payments stop on death, and the nominee gets the death benefit equal to the purchase price. |
| Joint Life Annuity | ||
| Option G1 | Joint Life Annuity with 50% to Secondary Annuitant after death of the primary annuitant. | The secondary annuitant receives 50% of payments after the primary annuitant's death until their death. If the Secondary Annuitant passes away before the Primary Annuitant, the annuity payments will continue to be made to the Primary Annuitant and stop upon their death. |
| Option G2 | Joint Life Annuity with 100% to Secondary Annuitant | Annuity payments will be made in arrears if either the Primary Annuitant or the Secondary Annuitant is alive. The secondary annuitant receives 100% of payments after the primary annuitant's death until their death. |
| Option H1 | Joint Life Annuity Increasing at 3% p.a. with 50% to Secondary Annuitant | Annuity payments will be made in arrears if either the Primary Annuitant or the Secondary Annuitant is alive. Each year, the annuity payment will increase by 3% as long as the Primary Annuitant is alive. When the Primary Annuitant dies, the Secondary Annuitant will receive 50% of the annuity that would have been paid to the Primary Annuitant. This will continue as long as the Secondary Annuitant is alive. If the Secondary Annuitant dies before the Primary Annuitant, the Primary Annuitant will continue to receive the entire annuity, and payments stop when the Primary Annuitant dies. |
| Option H2 | Joint Life Annuity Increasing at 6% p.a. with 50% to Secondary Annuitant | Annuity payments will be made in arrears if either the Primary Annuitant or the Secondary Annuitant is alive. The annuity payment will increase by 6% each year for as long as the Primary Annuitant is alive. When the Primary Annuitant dies, the Secondary Annuitant will receive 50% of the annuity that would have been paid to the Primary Annuitant. This will continue as long as the Secondary Annuitant is alive. If the Secondary Annuitant dies before the Primary Annuitant, the Primary Annuitant will continue to receive the entire annuity, and payments stop when the Primary Annuitant dies. |
| Option I1 | Joint Life Annuity Increasing at 3% p.a. with 100% to Secondary Annuitant | Annuity payments will be made in arrears if either the Primary Annuitant or the Secondary Annuitant is alive. Upon the death of the last surviving annuitant (either the primary or secondary annuitant), the annuity payments will stop immediately, and no further payment will be made. The annuity payments will increase by 3% per annum for each completed policy year as long as the Primary or Secondary Annuitant remains alive. |
| Option I2 | Joint Life Annuity Increasing at 6% p.a. with 100% to Secondary Annuitant | Annuity payments will be made in arrears if either the Primary Annuitant or the Secondary Annuitant is alive. Upon the death of the last surviving annuitant (either the primary or secondary annuitant), the annuity payments will stop immediately, and no further payment will be made. The annuity payments will increase at a simple rate of 6% per annum for each completed policy year as long as either the Primary or Secondary Annuitant remains alive. |
| Option J | Joint Life Annuity with 100% to Secondary Annuitant & Return of Purchase Price on Death of Last Survivor | Annuity payments will be made in arrears if either the Primary Annuitant or the Secondary Annuitant is alive. Upon the death of the last surviving annuitant (either the primary or secondary annuitant), the annuity payments will stop immediately, and the full purchase price will be returned to the nominee(s). |
Note: Policyholders can use the LIC Smart Pension plan calculator to estimate annuity rates for each of the above-mentioned annuity options.
Death Benefit Payout Options
Under the annuity options D, E1, E2, E3, E4, E5, F, and J, under which the death benefit is payable, if any, the Annuitant(s) must choose how they want it to be paid to the nominee(s). The selected option can not be changed later by the nominee(s). The options are as follows:
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Lumpsum: Under this option, the death benefit, if any, will be paid to the nominee(s) as a lump sum amount.
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Annuitisation: Under this option, the death benefit, if any, will be used to purchase an Immediate Annuity for the nominee(s). This annuity amount will depend on their age and the Immediate Annuity rates applicable on the Annuitant's date of death (or the last survivor in case of a Joint Life Annuity). This option can be chosen for the full or partial death benefit amount.
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In Instalments: Under this option, the death benefit amount, if any, can be received in instalments over 5, 10, or 15 years. A full or partial death benefit amount can be paid in instalments. The amounts will be paid in advance at yearly, half-yearly, quarterly, or monthly intervals, as opted by the nominee(s) as under:
| Mode of Instalment payment | Minimum Instalment Amount (Rs) |
| Monthly | 5,000 |
| Quarterly | 15,000 |
| Half-yearly | 25,000 |
| Yearly | 50,000 |
Maturity Benefit:
No maturity benefit is payable under the Smart Pension 879 LIC plan.
LIC Smart Pension Plan Details
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Surrender Value:
The policy can be surrendered at any time during the policy term, provided the premium is paid on time. This option is available only under the following annuity options with their Surrender Value calculation as shown:
Annuity Option Surrender Value (SV) Formula Condition D Balance of the Purchase Price (Purchase Price - Total annuity paid till surrender) x SV Factor If total annuity paid till surrender > Purchase Price, no surrender value is payable E1, E2, E3, E4, E5 (Purchase Price - Early Return of Purchase Price paid till surrender) x SV Factor If early return paid > Purchase Price, no surrender value is payable F and J Purchase Price × SV Factor Surrender value depends upon the policy year in which the surrender is made. -
Loan:
The loan facility will be available three months after policy issuance or the expiry of the free-look period, whichever is later, subject to terms and conditions. Loans are available only under the Annuity Options E1, E2, E3, E4, E5, F, and J of the LIC Smart Pension Scheme.
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Policy Termination:
The policy will terminate automatically and immediately upon the earliest occurrence of any of the following events:
(a) the payment of the lump sum death benefit or the final installment of the death benefit;
(b) the Annuitant's death, provided no death benefit is payable;
(c) the settlement of surrender benefits under the policy;
(d) the payment of the free-look cancellation amount, and
(e) in case of forfeiture. -
Free Look Period:
If the Policyholder is dissatisfied with the "Terms and Conditions" of the policy, the policy may be returned within 30 days from the date of receipt of the policy bond, electronic or physical, whichever is earlier.
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Alterations:
The annuity payment mode should be selected at the time the policy is purchased. The policyholder is allowed to change the annuity payment mode, subject to the following conditions:
Any kind of change in mode will be effective from the anniversary of the policy instantly following the request, provided the insurer receives these kinds of requests at least 3 months before the policy anniversary.
Under the plan, the policyholder is permitted to change the annuity payment mode from lower to higher frequency (for example, yearly to monthly) only two times. On the contrary, if the frequency is to be changed from higher to lower, there are no restrictions.
How to Buy LIC Plans From PolicyBazaar
You can easily buy LIC plans from PolicyBazaar using the following steps:
Step 1: Go to LIC.
Step 2: Fill in the form at the top right with your name and contact number, then click “View Plans.”
Step 3: Fill in your current city, age, and annual income.
Step 4: Once done, you can check all the plans available. Click on “Get Details” to get more information about each plan.
Step 5: Read the information under Plan Benefits or Fund Performance, then click “Proceed”.
Step 6: Provide the required details and select the plan best suited to your needs. Pay your premiums online, and you will receive your policy details at your registered email address.
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FAQs
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Q: What is the Smart Pension plan of the LIC?
Ans: LIC Smart Pension Scheme is a non-linked, non-participating immediate annuity plan that offers a guaranteed lifelong income after retirement. It is a single-premium plan, where the policyholder makes a one-time payment and starts receiving a fixed, regular pension, either for their own lifetime or jointly with another person. -
Q: Why should I buy LIC Smart Pension Scheme Plan?
Ans: LIC Smart Pension scheme (LIC plan 879) offers secure retirement, and allows you to choose reliable pension schemes, calculate benefits, and ensure financial stability in your golden years. -
Q: Is there a loan facility available under this plan?
Ans: Yes, the LIC Smart Pension scheme provides a loan facility three months after policy issuance or after the expiry of the free-look period, whichever is later. However, loans are only available under Annuity Options E1, E2, E3, E4, E5, F, and J. -
Q: What happens if the annuitant survives the policy duration?
Ans: In the LIC Smart Pension Scheme, if the annuitant survives the policy duration, they will continue to receive regular annuity payments for life, as per the chosen annuity option. -
Q: Is LIC Smart Pension Plan a market-linked product?
Ans: No, LIC Smart Pension Plan 879 is a non-linked product. This means your benefits are fixed and guaranteed and do not depend on stock market performance or market conditions. -
Q: Can I change my annuity option after purchasing the plan?
Ans: Once you select an annuity option while purchasing the LIC Smart pension Scheme, it can not be modified. For a cautious selection, you can use the LIC Smart Pension Plan calculator to estimate the benefit amount under each annuity option. -
Q: What are the benefits of LIC 879 plan?
Ans: The LIC Smart Pension Plan 879 is a reliable retirement plan offering guaranteed annuity options for both single and joint life coverage. There are 10 annuity options in this LIC pension plan 2025 that allow customers to make a choice as per their convenience. It ensures steady post-retirement income and offers incentives for existing LIC policyholders and higher annuity rates for larger purchase prices. Policyholders can also buy an immediate annuity for a disabled dependent under this plan. It also provides liquidity through surrender and loan options. -
Q: What is the 879 pension scheme?
Ans: The LIC Smart Pension Scheme, also called LIC plan 879, is an immediate annuity plan that starts regular pension payouts right after purchase.This LIC pension plan 2025 offers various annuity options under single or joint life options and guarantees fixed returns for life. These options provide flexibility in death benefits and surrender payout options. -
Q: How much pension will I get from a LIC Smart Pension plan?
Ans: Under the LIC 879 plan, minimum pension amounts start at ₹1,000 per month, ₹3,000 quarterly, ₹6,000 half-yearly, and ₹12,000 yearly. The actual payout depends on your purchase price and annuity option. LIC provides the LIC Smart Pension Plan calculator for calculating the annuity (pension) amount that you will receive under different combinations within the LIC Smart Pension Plan 879. -
Q: Can I get my money back from Smart Pension?
Ans: Yes, a refund is possible under the LIC Smart Pension Plan 879, but only if cancellation happens in the free-look period of 30 days of policy issuance. Your premium, after deducting stamp duty and other charges, will be refunded. -
Q: What is the new pension scheme 2025?
Ans: There are various pension schemes available in 2025, but the more popular and reliable ones include the following:
LIC Smart Pension Plan is the new LIC pension plan 2025 that offers guaranteed returns with various annuity options, joint life cover, and flexible death benefit payouts.
The Unified Pension Scheme (UPS), provides a minimum ₹10,000 monthly pension for central government employees with 10+ years of service.
NPS remains a preferred market-linked option with tax benefits and partial withdrawal flexibility.
Different types of Plans
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
++Returns are 10 years returns of Nifty 100 Index benchmark
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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