Investment Plans 1214 views August 5, 2020

LIC SIIP Plan

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.

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Key Features of the SIIP Plan

  1. This is a Unit Linked, regular premium, and individual life insurance plan.
  2. You will have to pay the premium amount regularly.
  3. Individuals having the age of 90 days can be added to this insurance plan.
  4. The company allows you to make partial withdrawals in case of an emergency during the policy term.
  5. There are five funds available in this plan among which you can switch freely.
  6. The company also allows the nominee to receive death benefits in installments.
  7. It includes death and maturity benefits.

Benefits of SIIP Plan

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.

Maturity Benefits

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.

Death Benefits

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:-

  • Amount equal to the Unit Fund Value Shall be Payable.

If the insured dies after the date of the commencement of risk then the highest of the following will be payable:-

  • Basic Sum Assured excluding partial withdrawals.
  • Unit Value
  • 105% of the premium received up to the date of death.

Refund of Mortality Charges

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.

Guaranteed Additions

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 YearGuaranteed Additions
End of 6th Year5% of the Annualized Premium Amount
End of 10th Year10% of the Annualized Premium Amount
End of 15th Year15% of the Annualized Premium Amount
End of 20th Year20% of the Annualized Premium Amount
End of 25th Year25% of the Annualized Premium Amount

Rider Benefits

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.

  1. The rider’s sum assured value cannot exceed the basic sum assured.
  2. You can add a rider to this plan in any policy year but there must be 5 years outstanding until the expiry of the policy.

Partial Withdrawals Benefits

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 YearPercentage of the Unit Fund for Withdrawal
6th Year to 10th Policy Year20% of the Unit Fund
11th Year to 15th Policy Year25% of the Unit Fund
16th Year to 20th Policy Year30% of the Unit Fund
21st Year to 25th Policy Year35% of the Unit Fund

Switching Between Funds

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:-

  1. Bond Fund
  2. Secured Fund
  3. Balanced Fund
  4. Growth Fund

Surrender Benefits

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:-

  1. You will get Unit Fund Value after deducting the discontinuance charges as the surrender benefits if you surrender the policy during the first five policy years.
  2. You will get Unit Fund Value as the surrender benefits if you surrender the policy after the first five policy years.

Free Look Period

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:-

  1. 15 Days of Free-Look Period if the Policy is purchased directly from the company.
  2. 30 Days of Free-Look Period if the Policy is purchased online.

LIC SIIP Plan Eligibility Criteria

ParticularsParticulars
Sum Assured for the Age Below 55 Years10 Time of the Annualized Premium
Sum Assured for the Age 55 Years and Above7 Times of the Annualized Premium
Minimum Age of Entry90 Days
Maximum Age of Entry65 Years
Minimum Maturity Age18 Years
Maximum Maturity Age85 Years
Policy Term10 Years to 25 Years
Premium Paying TermSame as the Policy Term
Minimum Premium AmountRs.40000 for Yearly Payment
Rs. 22000 for Half-Yearly Payment
Rs.12000 for Quarterly Payment
Rs.4000 for Monthly Payment
Maximum Premium AmountNo Limit

Charges of the SIIP Policy

  1. Premium Allocation Charges
  2. Mortality Charges
  3. Fund Management Charges
  4. Switching Charges
  5. Partial Withdrawal Charges
  6. Discontinuance Charges
  7. Right to Revise Charges

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