People can purchase the plan either as a single premium payment policy or a regular premium payment
Life Insurance Corporation (LIC) has introduced a new non-participating, unit-linked, individual pension plan, New Pension Plus, effective 5 September. It helps the policyholder in savings in a systematic and disciplined way. It can be converted into regular income through an annuity plan on the completion of its term.
People can purchase the plan either as a single premium payment policy or a regular premium payment. The premium will be paid during the term of the policy under the regular payment option.
Read More: Bank of Baroda Fixed Deposit Interest Rate vs SBI vs Bandhan Bank FD: Get up to 7.5% returns!
The policyholder can also choose the amount of premium and the policy term depending upon minimum and maximum limits of premium, policy term and vesting age. He or she can also extend the accumulation period with the same terms and conditions, subject to few conditions.
Under an in-force policy, guaranteed additions will be payable as a percentage of one annual premium. The guaranteed addition on regular premium ranges from 5.0-15.5 per cent and on single premium payable up to 5 per cent on the completion of a certain policy year. The amount of guaranteed additions can be used to purchase units as per the opted fund type.
The policy subscriber can invest premiums in four types of funds. A premium allocation charge will be levied on each premium paid. The balance amount known as allocation rate constitutes that part of the premium, which is utilised to purchase units of a fund chosen by the policyholder. The policyholders can also switch for change of funds, which will be available four times a year.
Read More: 10 Banks Offering The Lowest Home Loan Interest Rates Right Now
In May this year, LIC launched its IPO. It witnessed a good response from participants, as it was subscribed 2.95 times on the final day of bidding, with the portion reserved for qualified institutional buyers (QIBs) fully booked.
The bids received were 47.83 crore against the offer size of 16.21 crore. The LIC IPO’s price band was fixed at Rs 902-949 per share and the company offered a discount of Rs 60 per share for its policyholders and Rs 45 apiece for retail investors and LIC employees.
The shares of LIC on Tuesday were trading at Rs 653.10 apiece on the BSE, 0.99 per cent down as compared with the previous close.
With the current market cap of Rs 5,53,721.92 lakh crore, Life Insurance Corporation became the fifth-largest company in terms of valuation on the market listing day in May. LIC’s shares on Tuesday opened at a discount of 8.61 per cent at Rs 867.20 apiece on the BSE.
Now, as per the rankings on the BSE, in the ranking of top-10 firms, Reliance Industries is at the numero uno position, followed by TCS, HDFC Bank, Hindustan Unilever, Infosys, ICICI Bank, SBI, HDFC, Bajaj Finance and Adani Transmission. LIC is not there.
