LIC Smart Pension Plan Goes Live Today! Secure Your Retirement With LIC's Latest Pension Plan

The Life Insurance Corporation of India (LIC) launched its latest offering, the LIC Smart Pension plan, on February 17, 2025. This pension plan is open for sale from today, i.e., 18th February 2025.

This non-participating, non-linked, individual/group, savings, immediate annuity plan is tailored specifically for the domestic market, aiming to provide policyholders with a reliable and steady income stream post-retirement.

LIC, in an exchange filing, stated that pursuant to Regulation 30 of the Listing Regulations, this is to inform that the Life Insurance Corporation of India ("the Corporation") has announced the launch of its new product, which will be available for sale from February 18, 2025. The details of the said product are as follows: Name of the Product: LIC's Smart Pension, Category of Product: Non-Par, Non-Linked, Individual/Group, Savings, Immediate Annuity Plan, Whether caters to domestic and international market: Domestic market."

LIC Q3 Earnings for FY25

This product launch comes on the heels of LIC's recently announced financial results for the third quarter of the fiscal year 2024-2025. The corporation reported a 17% increase in net profit, amounting to Rs.11,056.5 crore, up from Rs.9,444 crore in the same period last year. This growth was primarily driven by a significant 20.76% reduction in expenses, which totaled Rs.14,415.80 crore.Despite the positive profit, LIC experienced a 9% decline in net premium income, which stood at Rs. 1.07 lakh crore, down from Rs. 1.17 lakh crore in the corresponding quarter of the previous fiscal year. This decrease was influenced by a 24% drop in single premiums and a 14% reduction in first-year premium collections.

LIC Shares Today

LIC shares today are trading in the red zone. As of 3:00 PM were trading at Rs.759.85, down by Rs.5.30 or 0.69% from the previous close. The stock has been on a declining trend, slipping 11% in the past 30 days and a significant 29% drop over the last six months.

Despite the recent weakness in stock performance, YES Securities has maintained its BUY rating on LIC, with a revised target price of Rs.1,000. The brokerage firm has valued LIC at 0.6x FY26 Price-to-Embedded Value (P/EV), based on its FY25E/26E/27E Return on Embedded Value (RoEV) projections of 11.1%, 11.4%, and 11.6%, respectively.

Other LIC Pension Schemes

In addition to the Smart Pension plan, LIC offers several other pension schemes:

LIC's New Jeevan Shanti: A deferred annuity plan that provides options for both single and joint life policies. Policyholders can choose between immediate and deferred annuity options, allowing for flexibility based on individual retirement planning needs.

LIC's Jeevan Akshay VII: An immediate annuity plan where policyholders can select from multiple annuity options. This plan is suitable for individuals seeking a regular income stream commencing immediately after a lump-sum investment.

Pradhan Mantri Vaya Vandana Yojana (PMVVY): A government-backed pension scheme aimed at senior citizens aged 60 years and above. The plan offers a fixed pension for a tenure of 10 years, with varying purchase price limits and pension amounts.