Life Insurance Corporation (LIC) of India on February 5 announced a new unit-linked plan called LIC Index Plus.
"LIC's Index Plus is a unit linked, regular premium, individual life insurance plan which offers life insurance cover cum savings throughout the term of the policy," an LIC release stated.
The release further added that once the plan completed a specific policy tenure, an annualised premium would be added to the unit fund under an in-force policy. This premium would be used to buy additional units.
LIC chairperson, Siddhartha Mohanty, launched the policy with its UIN (Unique Identification Number 512L354V01). The insurance company posted on X, announcing the launch of the Index Plus Plan.
Empower your financial journey with LIC's Index Plus Plan – Investment Growth while safeguarding your loved ones.#InvestProtectProsper#FinancialPlanning #ULIPInvesting pic.twitter.com/Tvrto3Yw2z
February 6, 2024LIC New Index Plus Policy Features
The post highlighted some aspects of the policy:
An individual can start with a monthly premium of Rs 2,500.
It offers a choice of two funds- up to 100% invested in select stocks of NIFTY 50 [Flexi Smart Growth Fund or NIFTY 100 (Flexi Growth Fund)]
“There is an option to choose any one of the two funds to invest premiums initially and at the time of switching, i.e. Flexi Growth Fund and Flexi Smart Growth Fund wherein investment will be primarily in selected stocks which are a part of NSE NIFTY 100 index or NSE NIFTY50 index respectively,” the release said.
According to the release, the minimum age to buy the policy is 90 days (completed) and the maximum age is 50-60 years (nearer birthday) based on the basic sum assured. This basic sum assured is 7-10 times of annualised premium for individuals at entry age of 90 days to 50 years (nearer birthday) and 7 times of annualised premium for age at entry 51 years to 60 years (nearer birthday).
The minimum age at maturity is 18 years and the maximum is 75-80 years based on the basic sum assured. The minimum policy term is 10-15 years, while the maximum is 25 years based on the annualised premium. The release states the premium paying term is equivalent to the policy term.
“Minimum premium ranges from Rs 30,000 (yearly), Rs 15,000 (half-yearly), Rs 7,500 (quarterly), Rs 2,500 (monthly) (NACH) depending upon the mode/premium payment frequency. Maximum premium-no limit subject to underwriting decision,” said the release.
On the date of maturity, an amount equal to the unit fund value shall be payable.
“Amount payable on the death of life assured differs depending upon whether the death of life assured is before the date of commencement of risk or after the date of commencement of risk. Refund of mortality charges are subject to terms and conditions,” said the release.
Individuals can avail of LIC's linked accidental death benefit rider. Simultaneously, one can partially withdraw the units at any time after the five-year lock-in period. However, these withdrawals are subject to conditions.
One can apply for the plan online through the official LIC website or offline through an authorised agent.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
