Formula
Y = a × Q / 1000
Half-yearly = 0.98 × Y / 2
Quarterly = 0.97 × Y / 4
Monthly = 0.96 × Y / 12
where
- Y
- yearly annuity
- a
- annuity rate, ₹ a year per ₹1,000 of purchase price, for your age and annuity option
- Q
- purchase price
The more often the annuity is paid, the smaller each instalment is against a straight share of the yearly amount.
*Source LIC Smart Pension brochure (PDF)
In short (tl;dr)
Smart Pension is LIC's 2025 immediate annuity, adding partial withdrawal and higher rates for existing policyholders to the standard immediate annuity design.
What is LIC Smart Pension?
Smart Pension (Plan 879) is an immediate annuity in the same family as Jeevan Akshay-VII, launched in 2025 with a wider entry age band of 18 to 100 and a set of liquidity features the older plan does not have.
The most useful of these is partial withdrawal: under the return of purchase price options you can take out part of the capital in defined circumstances, rather than having the entire amount locked away for life. There is also a surrender facility, and incentivised rates for existing LIC policyholders, for the nominees or beneficiaries of LIC policies, and for people with a benchmark disability.
Both single life and joint life structures are available, with and without return of purchase price, and the annuity can be taken yearly, half-yearly, quarterly or monthly.
Key features
- Entry age from 18 to 100 — the widest of any LIC annuity
- Partial withdrawal available under the return of purchase price options
- Incentivised rates for existing LIC policyholders and for their nominees
- Higher rates for annuitants with a benchmark disability
- Single life and joint life options; minimum purchase price ₹1 lakh
Smart Pension at a glance
- Plan number
- 879
- Category
- Pension & Annuity
- Entry age
- 18 to 100 years
- Minimum purchase price
- ₹1,00,000
- Maximum maturity age
- 100 years
- UIN
- 512N386V01
LIC publishes a page for this plan. It does not state the plan number or UIN on the page itself, so treat those two rows here as unconfirmed. Check it on licindia.in
What are the benefits of LIC Smart Pension?
What does LIC Smart Pension pay on death?
Under the return of purchase price options, the balance purchase price is paid to the nominee. Under the life-only options, nothing is payable on death beyond any guarantee period.
What do you get at vesting?
None. The annuity runs for life.
Who is LIC Smart Pension for?
A retiree who wants an immediate pension but is uncomfortable locking capital away with no route back to it.
What should you watch out for?
The liquidity is paid for in the annuity rate. Compare the income against Jeevan Akshay-VII for the same purchase price before deciding the flexibility is worth it.
Who can take LIC Smart Pension?
Age to buy the annuity
- Minimum
- 18 years
- Maximum
- 100 years
Purchase price
- Minimum
- ₹1,00,000
- Maximum
- No limit set by LIC
LIC caps this by what underwriting allows rather than with a printed figure. This calculator accepts up to ₹5 Crore.
The calculator applies every limit above. LIC sets them out under "Eligibility Conditions and Other Restrictions" on page 4 of the Smart Pension sales brochure, linked in the form above.
How this calculator works
Smart Pension is priced here on its own parameters, not a generic formula. We build the plan's full cash-flow schedule, meaning the death benefit in each policy year, every survival payout and the maturity value, then discount it on a basis calibrated to a reference premium for this plan. That reference is checked two ways: against LIC's published tabular rate, and against the return the plan's own benefits imply for the policyholder.
- Reference premium
- Published annuity rates at age 60
- Discount basis
- Solved separately for each annuity option, on LIC (2012-14) Ultimate mortality, to reproduce that option's own published rate at age 60
- GST
- Nil. Individual life insurance premiums have been exempt from GST since 22 September 2025, so the instalments shown are what you actually pay.
Bonus rates are declared annually and are not guaranteed; only the sum assured and any contractual guaranteed additions are. Read our editorial and methodology policyfor the full basis, and confirm every figure with LIC before you buy.
Check the source:Smart Pension on licindia.inLIC valuation and bonus declarationsIRDAI regulations
What this premium does not include
Smart Pension carries no optional riders, so the premium above is the whole premium. Some LIC plans let you bolt on accident, term or premium-waiver cover for an extra premium; this one does not.
Source: Smart Pension sales brochure (PDF), read in full.
How LIC Smart Pension compares
The plans people weigh this one against, and what separates each from it.
| Plan | Policy term | You pay for | Cover from | What is different |
|---|---|---|---|---|
| Smart PensionNo. 879 · this page | Not applicable | One premium | ₹1 Lakh | LIC's newest immediate annuity, with liquidity features the older plans lack. |
| Jeevan Akshay-VIINo. 857 | Not applicable | One premium | ₹1 Lakh | Hand over a lump sum, start drawing a guaranteed income immediately, for life. |
| New Jeevan ShantiNo. 758 | Not applicable | One premium | ₹1.5 Lakh | Buy the pension now, start drawing it up to five years later at a locked-in rate. |
| Jeevan Dhara IINo. 872 | Not applicable | One premium | ₹1 Lakh | A deferred annuity with regular or single premiums and eleven payout options. |
| Jeevan UtsavNo. 771 | 20 to 100 years | 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16 years | ₹5 Lakh | Guaranteed additions during the premium term, then 10% of the sum assured a year for life. |
To price several of these against each other on the same age and sum assured, the LIC premium calculator runs every plan on the site through the same engine and puts the answers in one table.
LIC Smart Pension: frequently asked questions
What is LIC Smart Pension Plan 879?
An immediate annuity launched in 2025. You pay a single purchase price and draw a guaranteed income for life, with entry ages from 18 to 100 and both single and joint life options.
Can I withdraw money from Smart Pension?
Under the return of purchase price options, yes — the plan allows partial withdrawal in the circumstances set out in the policy document, and a surrender facility. That is the main advantage over Jeevan Akshay-VII.
Who gets a higher annuity rate under Smart Pension?
Existing LIC policyholders, the nominees or beneficiaries of LIC policies, and annuitants who are persons with a benchmark disability all qualify for incentivised rates. Larger purchase prices also attract higher rates.
Is Smart Pension better than Jeevan Akshay-VII?
Smart Pension offers more flexibility and a wider entry age band; Jeevan Akshay-VII offers more annuity options, including the increasing annuity and the 5, 15 and 20-year guarantee periods. Compare the actual income for your age and purchase price on both calculators.
Spot something wrong?
If a figure on this page disagrees with an LIC premium notice, bonus statement or benefit illustration, tell us and we will check it against the brochure. Anything else you think this page gets wrong is just as welcome.
Related calculators
Plans people usually weigh up against Smart Pension before deciding.
Jeevan Akshay-VII
No. 857Hand over a lump sum, start drawing a guaranteed income immediately, for life.
Open calculatorNew Jeevan Shanti
No. 758Buy the pension now, start drawing it up to five years later at a locked-in rate.
Open calculatorJeevan Dhara II
No. 872A deferred annuity with regular or single premiums and eleven payout options.
Open calculatorJeevan Utsav
No. 771Guaranteed additions during the premium term, then 10% of the sum assured a year for life.
Open calculator