The LIC Pension Plus Plan (Plan No. 867) is a Unit Linked Insurance Plan (ULIP) designed to provide both investment and insurance benefits. This plan is set to be effective from November 1, 2024, and combines elements of life insurance with the potential for wealth accumulation through market-linked investments. Here’s an overview of its primary features and benefits: Key Features of LIC Pension Plus Plan (Plan No. 867)
Product Type:
The plan is a Unit Linked Insurance Plan (ULIP) that aims to provide retirement benefits alongside life cover.
Effective Date:
The plan will be effective from November 1, 2024.
Eligibility:
Age: Generally available for individuals aged between 25 to 75 years, though specific age limits might vary based on different options available in the plan.
Investment Options:
Funds: The policyholder can choose from several investment funds for allocating premiums, which may include options like:
Equity Fund
Debt Fund
Balanced Fund
Other specialized funds as offered by LIC.
The performance of these funds will determine the accumulation of the policy's value.
Premium Payment:
Flexible Premium Payment: The plan typically offers flexible premium payment modes, including single premium or regular premium options.
Minimum/Maximum Premium: Enter yearly Premium: 30,000
Term: Select Growth Fund: Initial NAV% 10 and Growth NAV% 8
Payout Options:
Upon maturity or policy surrender, the accrued value can be accessed based on the investment performance.
Annuity Options: At maturity, policyholders may have the option to convert their corpus into various annuity plans provided by LIC, offering a regular income stream post-retirement.
Death Benefit:
In case of the policyholder's death during the policy term, the nominee will receive the higher of the sum assured or the fund value at that time.
Lock-in Period:
ULIP plans usually have a lock-in period (typically 5 years) during which funds cannot be withdrawn, protecting both the insurer and investor.
Tax Benefits:
Premiums paid may qualify for tax benefits under Section 80C and any maturity amounts or annuities received may be subject to tax as per the prevailing laws.
Important Considerations:
Market Risks: Being a ULIP, LIC Pension Plus Plan (Plan No. 867) the investment component is subject to market risks, and the returns are not guaranteed.
Charges: ULIPs generally carry charges such as mortality charges, fund management fees, and premium allocation charges. Details must be reviewed carefully.
Consultation: Due to the complexity of ULIP products, it's wise to consult with a LIC financial advisor or authorized agent for personalized advice and to clarify any queries regarding investment strategies.
Final Notes:
This overview provides an outline of the LIC Pension Plus Plan (Plan No. 867). It is crucial to refer to the official policy document for complete terms, conditions, exclusions, and a detailed understanding of the products being offered. Make sure to assess how it aligns with your financial goals, especially regarding retirement planning and investment growth.
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