Life Insurance Corporation of India (LIC) has officially announced its latest scheme, LIC Index Plus. The launch date, as per a BSE notification on February 5, the policy is will available from February 6, 2024,
What Is LIC’s Index Plus Scheme?
LIC’s Index Plus is a unit-linked, regular premium, individual life insurance plan that combines life insurance coverage with savings throughout the policy’s tenure. The plan promises guaranteed additions as a percentage of the annualised premium, to be added to the unit fund after specific policy years.
Eligibility: Minimum and Maximum Entry Age
The entry age for this plan starts at a minimum of 90 days (completed) and has a maximum limit of 50 or 60 years (nearer birthday), depending on the basic sum insured. The maturity age ranges from 18 to 75 or 85 years (nearer birthday), again based on the basic sum assured.
Premium Structure
The basic sum assured is set at 7 to 10 times the annualized premium for individuals aged 90 days to 50 years (nearer birthday) and 7 times the annualized premium for those aged 51 to 60 years. The policy term ranges from 10 to 25 years, depending on the annualized premium, with the premium payment term aligning with the policy term.
Read More: RBI MPC: Home Loan Rates To Remain Affordable As RBI Pauses Repo Rate Hike
Premium Ranges
The minimum premium varies based on the payment frequency, starting from Rs. 30,000 (Yearly), Rs. 15,000 (Half-yearly), Rs. 7,500 (Quarterly), to Rs. 2,500 (Monthly through NACH). There is no maximum premium limit, subject to underwriting decisions.
Fund Options
Policyholders can choose between two funds for initial premiums and switching: Flexi Growth Fund and Flexi Smart Growth Fund. These funds primarily invest in selected stocks from the NSE NIFTY 100 index or NSE NIFTY50 index, respectively.
Read More: PPF: How Rs 90K investment can help you create Rs 1 crore retirement corpus
Additional Features and Options
– Partial withdrawals are available, subject to conditions.
– On the life assured surviving the date of maturity, an amount equal to the unit fund value at maturity is payable.
– Death benefit varies based on whether the death occurs before or after the commencement of risk.
– Refund of mortality charges is subject to terms and conditions.
– Optional features include LIC’s Linked Accidental Death Benefit Rider.
– Partial withdrawal of units is permitted after the 5 years’ lock-in period, subject to conditions.
– The plan is categorized as a Non-Participating Plan.
LIC’s Index Plus provides a comprehensive life insurance plan that combines flexibility, savings, and investment options.
