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Investment Plans 4221 views August 5, 2020
The trend of taking a life insurance plan in India is increase day by day because everyone knows that life is uncertain. So, in order to secure the future of the family, many individuals prefer taking a life insurance plan and some of them invest their money in life insurance to boost up their wealth. There are many insurance plans that give you life cover and maturity benefits. One such plan is LIC SIIP Plan that is a unit-linked, non-participating, Regular Premium and individual insurance plan. In this plan, your premium amount is invested into different funds that grow with the span of time. So, let’s explore the key features of this plan and go through the benefits as well.
Table of Contents
Here you can explore the various benefits of this insurance plan that can help you multiply your investment. You can see the privileges that you will enjoy in this plan.
If the insured successfully survives the policy term then he is entitled to receive the maturity benefits. The maturity benefits will be equal to the Unit Fund Value and it shall be payable after the expiry of the policy term.
If the insured dies during the policy term then the nominee is entitled to receive the death benefits. There are two conditions for the death benefits and they are:-
If the insured dies before the date of the commencement of risk:-
If the insured dies after the date of the commencement of risk then the highest of the following will be payable:-
The company will refund the mortality charges at the time of maturity of the policy. You will receive the mortality charges that were deducted earlier, with the maturity benefits.
There are certain percentages mentioned below that will be added after a certain span of time to your Sum Assured. It is known as guaranteed additions. The percentage will be calculated on the amount of the annualized premium.
Policy Year | Guaranteed Additions |
---|---|
End of 6th Year | 5% of the Annualized Premium Amount |
End of 10th Year | 10% of the Annualized Premium Amount |
End of 15th Year | 15% of the Annualized Premium Amount |
End of 20th Year | 20% of the Annualized Premium Amount |
End of 25th Year | 25% of the Annualized Premium Amount |
You can also add a rider to this plan that will help you to cover some extra accidental risk. The company allows you to add LIC Linked Accidental Death Benefit Rider to LIC SIIP Plan in which all the risks related to the death due to an accident will be covered. But you must go through some of the terms and conditions of this rider.
The company allows you to make partial withdrawals in case of an emergency after the 6th policy year. You can see the percentage of the maximum partial withdrawals in the table given below:-
Policy Year | Percentage of the Unit Fund for Withdrawal |
---|---|
6th Year to 10th Policy Year | 20% of the Unit Fund |
11th Year to 15th Policy Year | 25% of the Unit Fund |
16th Year to 20th Policy Year | 30% of the Unit Fund |
21st Year to 25th Policy Year | 35% of the Unit Fund |
The company also allows you to switch freely among different funds available in the SIIP Plan. The funds available in this plan are as follows:-
You can surrender the policy anytime during the policy term if you need funds to tackle an emergency. The surrender benefits will be paid as follows:-
Life Insurance Corporation of India (LIC) gives you a free-look period during which you can return the policy to the company. The free-look period offered are as follows:-
Particulars | Particulars |
---|---|
Sum Assured for the Age Below 55 Years | 10 Time of the Annualized Premium |
Sum Assured for the Age 55 Years and Above | 7 Times of the Annualized Premium |
Minimum Age of Entry | 90 Days |
Maximum Age of Entry | 65 Years |
Minimum Maturity Age | 18 Years |
Maximum Maturity Age | 85 Years |
Policy Term | 10 Years to 25 Years |
Premium Paying Term | Same as the Policy Term |
Minimum Premium Amount | Rs.40000 for Yearly Payment Rs. 22000 for Half-Yearly Payment Rs.12000 for Quarterly Payment Rs.4000 for Monthly Payment |
Maximum Premium Amount | No Limit |