The Life Insurance Corporation of India has launched a new scheme for investors who want to invest at regular intervals and get the dual benefits of insurance and investment.
New Delhi: Recently, India’s Life Insurance Corporation (LIC) introduced the LIC Index Plus Plan, which is a new investment opportunity designed for individuals who prefer making recurring premium payments. According to LIC, the Index Plus Plan serves a dual purpose: first, providing life insurance coverage and second, acting as a savings tool throughout the policy term.
Eligibility For LIC Index Plus Plan
For the insurance plan in question, the individual needs to be at least 90 days old and not more than 50 or 60 years old, depending on the basic sum assured. Notably, the age limit is based on your nearest upcoming birthday.
LIC Index Plus Plan: Plan Details
If you sign up for the policy and your age is between 90 days and 50 years, your Basic Sum Assured will range from 7 to 10 times your annual premium. But if you’re aged 51 to 60 years, your Basic Sum Assured will be seven times your yearly premium.
LIC Index Plus Plan: Premium Details
The premium an individual needs to pay for this LIC policy can fluctuate and depends largely on their preferred payment schedule. If the individual opts for annual payments, you may have to pay a premium of Rs 30,000, while the half-yearly rate stands at Rs 15,000. If the individual prefers quarterly payments, they have to pay Rs 7,500, and if they choose monthly payments, processed through NACH, they have to pay Rs 2,500. Notably, when it comes to the maximum premium, there’s no set limit.
5 Year Lock-In Period For LIC Index Plus Plan
After maintaining their policy for a minimum of five years, customers can get access to a part of their units if conditions demand it, according to the terms of the LIC. They further emphasized that a certain percentage of the yearly charges, referred to as guaranteed additions, will be piled onto the unit fund. This will only happen after the policy has been running for a certain length of time and remains active.
Important Policy Details
If the individual is covered by the LIC insurance policy and she survives until the policy’s maturity date, she will get a lump-sum payment equal to the value of the unit fund at that moment. Notably, the payout in the event of the insured person’s death varies based on when it takes place, either before or after the policy’s risk commencement date.
Most importantly, under the policy’s terms, policyholders have a chance to receive reimbursement for mortality charges too. For increased security benefit, they can select the Linked Accidental Death Benefit rider from LIC.