LIC shares rise 1% after insurer launches Smart Pension Plan; check 7 key details you need to know

A joint life insurance policy covers two individuals under one plan, while an individual policy covers just one person.

LIC said that the Joint Life annuity can be taken between any two lineal descendants/ascendants of a family (i.e., grandparent, parent, children, grandchildren) or spouse or siblings or parent-in-law.

Single premium insurance is a life insurance plan that requires paying the total premium in one go and keeping the policy in operation till maturity.

The Smart Pension Plan was launched by Financial Services Secretary M. Nagaraju along with Siddhartha Mohanty, CEO & MD of LIC, in the presence of senior officials of the finance ministry and LIC.

The Non-Par and Non-Linked plan has several liquidity options available for partial/full withdrawal as per the terms of the policy, LIC said in a statement. The minimum purchase price is ₹100,000 with incentives for the higher purchase prices, and modes of annuity payments allowable are yearly, half-yearly, quarterly, or monthly, it said.

"This is a non-par product under which benefits payable on death or survival are guaranteed and fixed (as per the chosen Annuity Option) irrespective of experience. Hence the policy is not entitled to any discretionary benefits like bonus etc. or share in Surplus," LIC said in its product's brochure.

An annuity is a contract between the customer and an insurance company that requires the insurer to make payments to the customer, either immediately or in the future.

Non-linked and non-participating plans do not receive any share of profits or dividends earned by the insurer. They provide guaranteed returns at low risk, explains PolicyBazaar.

The annuity rates under all annuity options are guaranteed at the inception of the policy.

LIC share price trend

Shares of LIC have fallen 28% in the past 12 months and 29% in the past six months.