Planning for a financially secure retirement is a top priority for many. The LIC Smart Pension Plan 879 is a popular pension plan designed to provide a steady income after retirement. In this article, we will explain the features, benefits, eligibility and, importantly, how to use the LIC Smart Pension Plan 879 calculator to estimate your pension payouts effectively.

What is LIC Smart Pension Plan 879?

The LIC Smart Pension Plan 879 is an immediate annuity pension plan offered by the Life Insurance Corporation of India (LIC). It is designed to provide regular pension income for life to individuals who want to secure their retirement financially. This plan requires a single premium payment, after which pension payments start immediately or after a chosen deferment period.

This plan is non-linked and non-participating, meaning it does not depend on market fluctuations, ensuring a stable and guaranteed pension.

Key Features of LIC Smart Pension Plan 879 Calculator

The LIC Smart Pension Plan 879 comes with various features that make it flexible and suitable for different financial needs. The LIC Smart Pension Plan calculator helps you estimate the pension amount you will receive based on your inputs, such as age, premium amount, and annuity options.

Important Features Include:

• Single Premium Payment: You pay a one-time lump sum to start your pension.
• Immediate Regular Pension: The pension starts immediately or after a deferment period.
• Multiple Annuity Options: Choose between a single life annuity or a joint life annuity (which covers the spouse).
• Payout Frequency Options: Pension can be received monthly, quarterly, half-yearly, or yearly.
• Flexible Death Benefits: Options to choose from annuity continuation, installments, or lump sum payment on death.
• Loan Facility: Loan against policy is available to meet liquidity needs.
• Incentives for Existing Policyholders: Special increased annuity rates for LIC policyholders.
• Tax Benefits: Premiums is eligible for tax deduction under Section 80C of the Income Tax Act.
• Minimum Entry Age: 18 years; Maximum Entry Age: up to 100 years (depending on the option selected).

How Does LIC Smart Pension Plan 879 Calculator Work?

The LIC Smart Pension Plan calculator is an online tool that helps you calculate the amount of pension payable based on specific inputs. It is a convenient and easy way to understand how much pension you can expect after investing a certain amount.

Required Inputs for the Calculator:

1. Age of the Primary Annuitant: Your current age.
2. Age of the Secondary Annuitant (optional): For joint life annuity options.
3. Purchase Price (Premium): The lump sum amount you plan to pay.
4. Annuity Option: Single life or joint life.
5. Annuity Payment Mode: Choose from monthly, quarterly, half-yearly, or yearly pension payouts.
6. Deferment Period (if any): The wait time before pension payments start (optional).

By entering these details, the calculator instantly shows the pension amount you will receive for each payment mode.

Steps to Use LIC Smart Pension Plan 879 Calculator

To use the calculator effectively, follow these simple steps:

1. Visit the LIC official website or authorized portal where the calculator is available.
2. Enter basic personal details—name, date of birth (which calculates your age automatically), gender, and contact info.
3. Select the Smart Pension Plan 879 from the list of LIC pension plans.
4. Choose your annuity option—single life or joint life.
5. Input the purchase price, keeping in mind the minimum amount (Rs. 1,00,000).
6. Select the mode of pension payment—monthly, quarterly, half-yearly, or annually.
7. Optionally, enter the deferment period if you want to start the pension after some time.
8. Click on calculate to see the pension payouts for different modes.
9. Review the results and adjust inputs if needed to suit your financial goals better.

Types of Annuity Options in LIC Smart Pension Plan 879

The plan provides different annuity options to meet diverse needs:

• Option A: Life Annuity
  • Pension paid for the lifetime of the annuitant only.
  • No amount paid to nominees after death.
• Option B: Life Annuity with Return of Purchase Price
  • Pension paid for life.
  • On death, the nominee receives the purchase price.
• Option C: Life Annuity with Guaranteed Period
  • Pension paid for life with guaranteed payout for a specified period.
  • If the annuitant dies before the period, the nominee receives the balance.
• Option D: Joint Life Annuity
  • Pension is paid jointly to the annuitant and spouse.
  • Continues for the lifetime of either.
• Option F: Life Annuity with Deferred Pension
  • Start pension after a deferment period.

Each option has variants with increasing pensions or return of purchase price with installments.

Benefits of LIC Smart Pension Plan 879

Financial Security in Retirement

This plan ensures a steadily increasing or fixed income during post-retirement, safeguarding against financial uncertainties.

Flexible Pension Payment Modes

Choose monthly, quarterly, half-yearly, or annual payments—whichever suits your budgeting preferences.

Joint Life Coverage

The plan allows coverage for your spouse, ensuring financial support continues even after your demise.

Tax Advantages

Premiums paid are eligible for deductions under Section 80C of the Income Tax Act, and annuity income is also exempt as per tax laws.

Loan Facility

If you face liquidity issues, you can avail a loan against the policy, providing easy access to funds when needed.

Sample Calculation Using LIC Smart Pension Plan 879 Calculator

Assuming the following:

• Primary Annuitant’s Age: 60 years
• Purchase Price: Rs. 10,00,000
• Annuity Option: Single Life Annuity (Option A)
• Payment Mode: Monthly pension

The calculator may show:

Payment Mode	Annuity Amount (Rs.)
Yearly	75,000
Half-Yearly	37,800
Quarterly	19,200
Monthly	6,200

This means you will receive around Rs. 6,200 every month as a pension for life.

Why Use the LIC Smart Pension Plan 879 Calculator?

The LIC Smart Pension Plan 879 calculator lets you:

• Estimate pension payouts based on your preferred premium and age.
• Compare different annuity options and payment modes.
• Plan retirement finances with clarity.
• Make informed decisions without relying on guesswork.

This calculator is a powerful tool for understanding your pension benefits upfront.

Who Should Consider LIC Smart Pension Plan 879?

• Individuals nearing retirement who want a guaranteed lifetime pension.
• Those preferring a single premium payment with immediate pension benefits.
• Spouses wanting joint life annuity coverage for financial security.
• Anyone looking for a stable, risk-free pension plan backed by LIC.

Important Points to Remember

• The minimum purchase price is Rs. 1,00,000; for disabled dependents, it is Rs. 50,000.
• Pension payouts are guaranteed and not linked to market risks.
• There is no maturity benefit payable in this plan.
• The plan offers special incentives for existing LIC policyholders.
• The policy can be surrendered with a surrender value that varies by option.
• Plan purchase can be done online via the official LIC website.

Where to Find the LIC Smart Pension Plan 879 Calculator Online?

The official LIC website licindia.in provides the pension plan calculator for accurate calculations. Additionally, many independent insurance portals offer calculators based on the LIC Smart Pension Plan for convenience.

Frequently Asked Questions

Conclusion

The LIC Smart Pension Plan 879 is an ideal choice for anyone looking for financial independence during retirement. Its flexible annuity options, guaranteed lifetime pension, and easy-to-use online calculator make it a reliable and convenient plan.