India’s Life Insurance Corporation (LIC) has introduced the LIC Index Plus Plan, a new investment opportunity for those who choose to make periodic monthly payments. According to LIC, the Index Plus Plan has two purposes: first, it provides life insurance coverage, and second, it acts as a savings instrument during the policy’s duration.
Eligibility For LIC Index Plus Plan
For the insurance plan in issue, the individual must be at least 90 days old and no older than 50 or 60 years old, depending on the basic sum insured. Notably, the age restriction is determined on the next coming birthday.
LIC Index Plus Plan Details
If you sign up for the insurance during the age of 90 days to 50 years, your Basic Sum Assured will be 7 to 10 times your yearly premium. However, if you’re 51 to 60 years old, your Basic Sum Assured will be seven times your annual premium.
LIC Index Plus Plan: Premium Details
The premium required for this LIC insurance varies and is mostly determined by the individual’s selected payment plan. If the person opts for annual payments, you may have to pay a premium of Rs 30,000, while the half-yearly charge is Rs 15,000. If the individual chooses quarterly payments, they must pay Rs 7,500, while monthly payments made through NACH need Rs 2,500. Notably, there is no stated limit for the maximum premium.
5 Year Lock-In Period for LIC Index Plus Plan
Customers who have maintained their insurance for at least five years may be able to access a portion of their units if conditions warrant it, according to the regulations of the LIC. They also said that a set amount of the annual charges, known as guaranteed additions, would be piled onto the unit fund. This will only occur when the policy has been in effect for a specified amount of time and stays active.
Important Policy Details
If the LIC insurance policy covers the individual and lives until the policy’s maturity date, she will receive a lump sum payout equivalent to the amount of the unit fund at the time. Notably, the payout in the case of the insured person’s death differs depending on when it occurs, whether before or after the policy’s risk beginning date.
Most crucially, the policy’s conditions allow policyholders to get payment for mortality expenditures. They might choose LIC’s Linked Accidental Death Benefit rider for an added layer of assurance.
