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LIC Smart Pension Plan 879
The LIC Smart Pension Plan 879 is a single premium, non-par, individual/Group savings, immediate annuity plan that provides guaranteed lifetime income. In this LIC Pension plan 2026, policyholders only have to make a single premium payment, and the payout starts immediately. The LIC Smart Pension Plan 879 offers flexibility in annuity options, including single life and joint life coverage. With the Smart Pension plan LIC offers special incentives for NPS policyholders, existing LIC policyholders and Divyangjan (individuals with disability). This plan is ideal for people who are looking for a secure stream of income after retirement and can use LIC Smart Pension Plan 879 Calculator:
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
Read on to know more about LIC Smart Pension Plan 879 in detail.
LIC Smart Pension Plan 879- An Overview
LIC Smart Pension plan is a Non-Par, Non-Linked, Individual/Group, Savings, Immediate Annuity plan that offers a range of annuity options for Single Life and joint life options. Under these coverage options, there are a number of annuity options offered to policyholders. The Joint Life Annuity Option in this LIC Pension Plan 2026 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 the LIC Smart Pension plan 2026, policyholders can secure their future by paying a lump sum amount as the purchase price to receive a fixed and regular guaranteed pension for life in return. The LIC Smart Pension plan 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 be easily purchased both offline and online.
Key Features of LIC Smart Pension Plan 2026
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LIC Smart Pension plan is a single-premium immediate annuity plan.
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Individual or Group Savings: Single Life and Joint Life Annuity to 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 by calculating the amount using the LIC Smart Pension plan 2026 calculator.
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The minimum annuity payments are Rs. 1,000 (Monthly), Rs. 3,000 (Quarterly), Rs. 6,000 (Half-Yearly), and Rs. 12,000 (Yearly), and there is no limit on the maximum annuity payment to the policyholder.
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You can choose between Annuitisation, Instalments, and Lump sum as your death benefit payment option, depending on what you want.
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By choosing the Advanced Annuity, Liquidity, and Annuity Accumulation Option, you can make the plan fit your financial goals.
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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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This LIC pension scheme 2026 offers a special incentive of 3% for NPS subscribers.
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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 USPs
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The LIC Smart Pension plan 2026 is a Single Premium annuity plan- Pay once, enjoy lifetime income
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In the Smart Pension plan LIC offers Immediate Annuity- Annuity payouts start right after policy purchase
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In the LIC Smart Pension plan 879, Joint Annuity can be purchased for Grandparent, Parent, Children, Grandchildren, spouse, siblings or Parent-in-law.
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This LIC Pension Plan 2026 can be purchased online and offline.
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Special incentive for NPS subscribers and cover for disabled dependents
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) |
| 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 LIC Smart Pension plan annuity options D, E1, E2, E3, E4, E5, F, and J, in 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 annuity amounts of this LIC senior citizen scheme 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.
Sample Calculation Using the LIC Smart Pension Plan Calculator
Let us calculate the annuity payout amount with these LIC Smart Pension Plan details using the LIC Smart Pension Plan calculator.
Primary Annuitant’s Age: 35 Years
Secondary Annuitant’s Age: 33 Years
Purchase Price: Rs. 10 Lakhs
| Annuity Payment Mode | Single Life (Option A) | Joint Life (Option G1) |
| Annual | 69,623 | 67,983 |
| Half-Yearly | 34,115 | 33,311 |
| Quarterly | 16,883 | 16,486 |
| Monthly | 5,570 | 5,439 |
Just like any other LIC Pension Plan calculator , this calculator also asks for details such as name, DOB, contact, etc, then Annuity type, Annuity option and Purchase price. Once these details are provided, the LIC Smart Pension plan calculator computes the amounts in just a few simple steps.
LIC Smart Pension Plan Details
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Surrender Value:
The LIC Smart Pension plan 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 of this LIC pension plan 2026, 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 under the LIC Smart Pension plan is 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 LIC Smart Pension plan 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 this LIC retirement plan, it 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 LIC Smart Pension 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 the LIC Smart Pension Plan from LIC?
Online Method
Here is how you can purchase the LIC Smart Pension Plan from the official LIC website:
Step 1: Visit the official LIC website.
Step 2: Click on ‘Login’.
Step 3: Enter your mobile number, OTP and click ‘Login’. If you are a new user, click on ‘Sign Up’
Step 4: Click on the ‘Buy Online’ button.
Step 5: Click on the ‘Pension’ tab and tick ‘LIC's Smart Pension’ option and hit ‘Proceed’.
Offline Method
Individuals can also opt for the Offline process of buying the LIC Smart Pension Plan through an agent or other intermediaries, such as Point of Sales Persons-Life Insurance (POSP-LI) or Common Public Service Centers (CPSC-SPV).
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FAQs
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What is the Smart Pension plan of the LIC?
The LIC Smart Pension Plan 2026 is a non-linked, non-participating LIC annuity plan designed to provide guaranteed lifelong income after retirement. It is a LIC pension plan single premium product, meaning you invest once and receive a fixed pension immediately and can be chosen for single life or joint life. -
Why should I buy LIC Smart Pension Scheme Plan?
The LIC plan 879 guarantees a monthly income for life, which helps make retirement less stressful. It is one of the best LIC pension plans because it offers flexible annuity options, guaranteed returns, and long-term stability. -
Is there a loan facility available under this plan?
Yes, the LIC Smart Pension Plan lets you take out a loan three months after the policy is issued or the free-look period ends, whichever comes first. You can only get this feature with certain annuity options. -
What happens if the annuitant survives the policy duration?
The LIC Smart Pension Scheme pays the annuitant regular pension payments for the rest of their life. This guarantees a steady stream of income and makes it even more valuable as a reliable LIC monthly pension plan. -
Is LIC Smart Pension Plan a market-linked product?
No, LIC Smart Pension Plan 879 is a non-market-linked product. The pension amount is guaranteed and unaffected by stock market fluctuations. -
Can I change my annuity option after purchasing the plan?
Under this LIC pension plan, once you have selected the annuity option, it can not be changed. -
What are the benefits of LIC 879 plan?
The top benefits of LIC Smart Pension plan include guaranteed lifelong income, 10 annuity options for single and joint life, and higher annuity rates for higher investments. Recognized as a dependable LIC retirement plan, it also offers incentives for existing LIC policyholders, options for disabled dependents, surrender benefits, and loan facilities. -
What is the 879 pension scheme?
The 879 pension scheme is the LIC Smart Pension Scheme (Plan 879). It is an LIC monthly pension plan that starts annuity (pension) right away after you buy it. This LIC annuity plan has various annuity options and offers guaranteed returns. -
How much pension will I get from a LIC Smart Pension plan?
In the LIC Smart Pension Plan 879 the lowest pension is Rs 1,000 a month, Rs 3,000 every three months, Rs 6,000 every six months, or Rs 12,000 a year. The amount of your pension will depend on how much you invest and which annuity option you choose. -
Can I get my money back from Smart Pension?
Yes, you can either cancel and return the LIC Smart Pension Plan within the 30-day free-look period. In these situations, the premium amount is returned after deducting any applicable fees. Or in case you need to surrender the LIC pension plan, you can get a surrender value under options D, E, F, and J. -
What is the new pension scheme 2026?
There are many pension plans available in 2026 and the LIC Smart Pension Plan 2026 is one of the LIC best pension plans because it offers guaranteed-income option. The Unified Pension Scheme (UPS) for government workers and the NPS for market-linked growth are two other options. -
Are there any special benefits for National Pension System subscribers?
Yes, NPS subscribers who leave their account can get bonuses of up to 3% when they invest in this LIC pension plan single premium through the NPS-Exit platform, as long as they follow PFRDA rules. -
What are the different options under LIC 879?
The LIC Smart Pension Plan 879 has various annuity options for both single life and joint life. These flexible choices make it easier for customers to find the right LIC pension plan that fits with their retirement goals. -
How does the LIC Smart Pension Plan make sure that dependents with disabilities are financially safe?
The LIC Smart Pension Plan 2026 helps Divyangjan dependents by offering special annuity options that pay out for the rest of their lives. You can get guaranteed payments with the purchase price, which means you can count on stable support from a trusted LIC pension scheme and LIC retirement plan.
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
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
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