Investment Plans March 27, 2021

A Unit Linked Insurance Plan (ULIP) comes with a combo of life insurance and investment benefits. And Life Insurance Corporation of India (LIC) is a renowned insurance company offering you a wide range of ULIP plans with benefits like free fund switches, full liquidity of policy fund value after a 5-year lock-in period, death payout, maturity payout and accident payout. Read this post below to know more about LIC ULIP Plans.

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LIC Money Plus

LIC Money Plus is a unit-linked endowment plan that offers you both investment and insurance benefits. Under this LIC ULIP Plan, you can choose the level of cover, premium payment option from single or regular premium payment.

Your paid premiums shall be allocated to the fund units as per your chosen fund type. You can choose your fund for LIC Money Plus from the following options –

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

LIC Money Plus premium can be paid regularly on a yearly, half-yearly or quarterly basis. The minimum annual premium is INR 5,000 and the same will increase thereafter in multiples of INR 1,000. And the minimum single premium amount is INR 10,000 for LIC Money Plus and in multiples of INR 1,000 thereafter.

Death Benefit: In case of your death, the nominee will get either Sum Assured or the Fund Value of the units, whichever is higher.

Maturity Benefit: On surviving till the maturity date, you will get an amount equal to the Fund value of the units.

You are eligible to buy LIC Money Plus if you meet the following conditions:

  1. The minimum entry age is 0 years as on the date of the last birthday
  2. The maximum entry age is 65 years as per the nearer birthday
  3. The minimum age allowed at maturity is 8 years
  4. The maximum age allowed at maturity is 75 years as per the nearer birthday
  5. Minimum policy term – 5 years
  6. Maximum policy term – 20 years

LIC Money Plus Sum Assured under the regular premium policy would be 5 times the annualized premium or half of the policy term times the annualized premium, whichever is higher. Whereas the maximum sum assured for regular premium is 20X the annualized premium, provided the insured’s age at entry is up to 55 years. Otherwise, the maximum sum assured would be 10X the annualized premium if the age at entry is 56 years and above.

Note – The minimum and sum assured for a single premium is 1.25 times the premium amount.

LIC Health Plus

LIC Health Plus is a long term unit-linked health insurance plan that provides you and your family the following benefits –

Hospital Cash Benefit (HCB): A daily cash benefit of INR 250-2,500 shall be payable in case the insured or other insured members are hospitalized due to accidental body injury or any illness. The daily cash benefit depends upon the level of the cover opted by the insured.

Major Surgical Benefit (MSB): If the insured undergoes one of the major surgeries, a lump sum benefit equal to the percentage of the sum assured will be payable, provided a proper proof of surgery is submitted.

Note – The list of major surgeries covered under LIC Health Plus is mentioned on the Life Insurance Corporation (LIC) official website.

Domiciliary Treatment Benefit (DTB): You can withdraw an amount equivalent to the actual expenses incurred in respect of any domiciliary hospitalization, medical expenses incurred over and above the hospital cash or major surgical benefits in respect of either yourself or other insured members under the policy.

Your paid premiums for LIC Health Plus shall be allocated to Health Plus Fund (Income and Growth – Low Risk) to purchase fund units in Government, Government guaranteed, Corporate securities, debt, short term investments, money market instruments, equity shares, etc.

LIC Nivesh Plus

This is a Unit Linked, Non-Participating, Single Premium Individual Life Insurance that offers a high sum insured to help you in both good or bad times. At inception, you have a choice of investing the premium in one of the four types of investment funds – Bond Fund, Secured Fund, Balanced Fund and Growth Fund. When you pay a single premium for LIC Nivesh Plus, the company will purchase units of the fund type chosen by you. LIC Nivesh Plus Policy Fund is subject to various charges and the value of its units may increase or decrease, depending on the Net Asset Value (NAV). Under this LIC ULIP Plan, you will get the following benefits –

Death Benefit: On the death of the life assured before the date of commencement of the risk, LIC will pay an amount equal to the unit fund value to the nominee. Whereas upon the death of the life assured after the date of commencement of risk, LIC pays an amount equal to higher of the following to the nominee-

  1. Basic Sum Assured less Partial Withdrawals
  2. Unit Fund Value

Note – Mortality charges, accident benefit charges and tax charges shall be recovered subsequently to the date of death and the same shall be paid back to the nominee or beneficiary along with the death benefit.

Maturity Benefit: On the life assured surviving till the date of maturity, LIC pays an amount equal to unit fund value to the life assured.

Guaranteed Additions: A percentage of your single premium shall be added to the unit fund value on the completion of a specific number of policy years, and this shall range from 6.3-25.7%. The allocated Guaranteed Additions shall be converted to units based on the NAV of your chosen fund type as on the date of such addition, and the same shall be credited to the unit fund. However, if any Guaranteed Additions are added subsequently to the date of death, they shall be recovered from the unit fund.

LIC ULIP Plans Rider Benefit

Under LIC ULIP plans, you have the option of following riders to enhance your coverage.

Accidental Death Benefit Rider: This rider will be provided to you if the outstanding policy term is at least 5 years on/or before the policy anniversary when the age of the insured is 65 years as per the nearer birthday. The rider cover shall be available till the date of maturity or till the policy anniversary on which the age nearer to the birthday of the life assured is 70 years, whichever is earlier. It is also subject to policy being in force as on the date of the accident. If an accidental death happens, the Accident Benefit Sum Assured will be payable in lump sum along with the death benefit under the base plan.

Note – Accidental Death Benefit rider shall not be available to the life assured, provided the insured life is of a minor.

Critical Illness Benefit Rider: If your age is between 18 and 50 years, you can add this Critical Illness Benefit Rider to your ULIP plan. Under this rider, you will get a sum insured equal to the life cover, subject to a minimum of INR 50,000 and a maximum of INR 5 lakh, provided the policy term is 10 years and above.

If any Critical Illness is diagnosed to the life assured during the policy term, an additional sum equal to the Critical Illness Benefit shall be paid to him/her.

Make Partial Withdrawals from LIC ULIP Plans

You can encash the LIC ULIP Plans unit partially after the 3rd policy anniversary, subject to the following conditions:

  1. If the insured is a minor, the partial withdrawals are allowed from the policy anniversary coinciding with or the next day when the life assured attains majority.
  2. Partial withdrawals can be made in the form of a fixed amount or fixed number of units.
  3. The sum assured of LIC ULIP Plans shall be reduced to the extent of the amount of partial withdrawals made by you for 2 years from the date of withdrawal.
  4. For regular premium policies – If you have paid the premium for less than 3 years and further premiums are not paid, the partial withdrawals shall not be allowed to you.
  5. Under regular premium ULIP policies where at least the premiums for 3 years are paid, partial withdrawal will be allowed. The partial withdrawal will be allowed if a minimum balance of two annualized premiums remains in the Policyholder’s Fund Value.
  6. Under Single Premium LIC ULIP policies, partial withdrawal will be allowed subject to a minimum balance of INR 5,000 in the Policyholder’s Fund Value.

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