LIC Share Price: Shares of Life Insurance Corporation of India (LIC) rose nearly 1% to ₹765 per share on the BSE on Wednesday, February 19, as the state-owned life insurer on Tuesday launched a single premium Smart Pension Plan that offers a variety of annuity options for single life as well as joint life type of annuity.
A joint life insurance policy covers two individuals under one plan, while an individual policy covers only one person.
Joint life annuity can be taken between any two descendants/ascendants of the family (i.e. grandparents, parents, children, grandchildren) or spouses or siblings or parents-in-law, LIC said.
Single premium insurance is a life insurance plan for which the total premium has to be paid in one go and the policy has to be continued till maturity.
The Smart Pension plan was launched by Financial Services Secretary M. Nagaraju along with LIC CEO and MD Siddhartha Mohanty in the presence of senior officials from the Finance Ministry and LIC. LIC said in a statement that the non-par and non-linked plan has multiple liquidity options available for partial/full withdrawal as per the policy terms. The minimum purchase price is ₹100,000, with incentives for higher purchase price, and the acceptable modes of annuity payment are yearly, half-yearly, quarterly or monthly. LIC said in its product brochure, “This is a non-par product, under which the benefits payable on death or survival are guaranteed and fixed (as per the annuity option chosen). Hence the policy is not entitled to any discretionary benefits like bonus etc. or share in surplus.” An annuity is a contract between the customer and the insurance company, under which the insurer is required to make payments to the customer either immediately or in the future.
Non-linked and non-participating plans do not get any share of the profits or dividends earned by the insurer. Policybazaar states that they offer guaranteed returns at low risk.
This plan can be purchased offline through agents/other intermediaries, including Point of Sales Persons-Life Insurance (POSP-LI) and Common Public Service Centres (CPSC-SPV), as well as directly online through the website www.licindia.in.
