LIC of India 275 views June 30, 2021

LIC Money Plus

LIC Money Plus is a unit-linked endowment plan that helps you build a corpus as well as provides you a life cover. You can choose the level of your investment from four types of funds as per your risk appetite. Read this page further and know more about the benefits of LIC Money Plus.

LIC Money Plus Benefits

You’ll be entitled to the following benefits under LIC Money Plus:

Death Benefit:

In case of death of the life assured during the policy term, the insurer shall pay higher of the following to the nominee:

  1. Sum Assured
  2. Fund Value as on the date of death

If the life assured age is less than 12 years before the commencement of risk, only the Fund Value shall be paid in case of death.

Maturity Benefit:

Upon survival till the maturity date, the insurer shall pay an amount equal to the Fund Value.

LIC Money Plus Investment of Funds

The premium shall be allocated to purchase units and will be invested accordingly in various funds chosen by you. You can invest in any one of the following funds under LIC Money Plus:

  1. Bond Fund: If you don’t want to take the risk, invest in this fund. Here, 60% of your premium shall be invested in Government/Government Guaranteed Securities/Corporate Debt and 40% in money market instruments.
  2. Secured Fund: For steady income at moderate risk, invest in this fund. 40-45% of your premium shall be invested in debt securities and money market instruments. And the rest 15-55% would go in equity shares.
  3. Balanced Fund: Get balanced income at a moderator risk level under this fund. The insurer shall invest 30-40% in debt and money market instruments and 30-70% in equity.
  4. Growth Fund: For long-term capital growth, you should invest in this fund. 20% of the premium is invested in Government/Government Guaranteed Securities/Corporate Debt. while 40% is invested in short-term investments such as money market instruments. And 40-80% shall be invested in listed Equity Shares

LIC Money Plus Rider Options

You can enhance your protection by adding any of the following riders to your plan:

Accident Benefit Option:

An individual aged above 18 years can opt for Accident Benefit Option. Under this rider, your nominee will receive an amount equal to the amount of life cover in case of your accidental death. This benefit will be available to the life assured till the policy anniversary where the nearer birthday of his/her is 70 years. Accident Benefit sum assured is subject to a minimum of INR 25,000 and a maximum of INR 50 Lakh.

The cost of Accident Benefit rider is INR 0.50 per thousand Accident Benefit Sum Assured and it will be levied every month.

Critical Illness Benefit Rider:

Individuals aged between 18 and 50 years can opt for Critical Illness Benefit rider, provided the policy term is 10 years and above. This benefit is available till the policy anniversary on where the nearer birthday of the life assured is 60 years. In case you are diagnosed with any of the covered critical illnesses, an additional sum equal to the Critical Illness Benefit shall be payable to you. The Critical Illness Benefit is a minimum of INR 50,000 and a maximum of INR 10 Lakh.

The cost of the Critical Illness Benefit rider is based upon the life assured’s age and is levied every month. Critical Illness Benefit charges per INR 1,000 for a healthy life are as follows:

  1. 25 Years – 0.91
  2. 35 Years – 1.80
  3. 45 Years – 5.31
  4. 55 Years – 14.44

Eligibility for LIC Money Plus

You need to meet the following age criteria to purchase LIC Money Plus:

  1. Minimum Age at entry – 0 years (as on the last birthday)
  2. Maximum Age at entry – 65 years (as on the nearer birthday)
  3. Minimum Age allowed till maturity – 18 years
  4. Maximum Age allowed till maturity – 75 years (as on the nearer birthday)

LIC Money Plus Premium Amount & Sum Assured

LIC Money Plus offers policy terms of – 10 years, 15 to 30 years. The minimum premium amount is as follows –

Regular Premium (other than monthly mode)

  1. INR 5,000 p.a. for a policy term of 20 to 30 years
  2. INR 10,000 p.a. for a policy term of 15 to 19 years
  3. INR 15,000 p.a. for a policy term of 10 years

Regular Premium (for monthly mode)

  1. INR 1,000 p.m. for a policy term of 15 to 30 years
  2. INR 1,500 p.m. for a policy term of 10 years

Note: Annualized Premiums shall be payable in multiples of INR 1,000 for other than monthly mode. Whereas for the monthly mode, the premium shall be payable in multiples of INR 250.

LIC Money Plus minimum sum assured is 5X the annualized premium. The maximum sum assured is:

  1. 30X the annualized premium if the age at entry is up to 45 years
  2. 20X the annualized premium if the age at entry is 46 to 60 years
  3. 10X the annualized premium if the age at entry is 61 years and above

Note: If the minimum sum assured is not in the multiples of INR 5,000, it will be rounded off to the next multiple of INR 5,000.

Suicide Clause

In case the life assured commits suicide within one year from the date of commencement of risk/policy revival, the insurer shall pay the Fund Value as on his/her death, to the nominee.

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