The Flexi Plus Plan from LIC is designed to serve a dual purpose, offering not just financial protection in the event of demise of policyholder, but also serving as an investment option. A unit-linked scheme, it is ideal for individuals looking beyond traditional insurance plans. Investment in this plan ensures that inflation doesn’t undermine the value of an investment.
A policyholder can customise the plan according to his/her needs, with different fund options to choose from.
An individual looking to benefit from this plan should keep these basic eligibility criteria in mind.
|Parameters||Criteria for eligibility|
|Minimum age at entry||18 years|
|Maximum age at entry||50 years|
|Maximum age at maturity||60 years|
Sum Assured – This can be viewed as the financial protection provided by the plan. It is the amount which is paid to the nominee on the demise of the policyholder/to the policyholder in case of policy maturity. The amount payable is determined after taking a number of factors into consideration. It is a smart option to choose a sum assured which takes multiple contingencies into account, for choosing a low amount might not offer the protection needed.
Premium – The premium amount determines the cover provided by the plan. Typically, higher the premium amount, higher the sum assured. There are multiple premium payment modes on offer under this plan, ensuring that one can choose a mode which is convenient. The table below highlights the different premium options available.
|Premium payment modes||
|Minimum premium amount||
|Maximum premium amount||
*The premium varies based on the age of policyholder, sum assured, location, etc. With the implementation of GST the price of purchasing a policy has increased. Please check all rates at the time of purchase.
The Flexi Plus Plan is designed to double up as an insurance plus investment scheme. As such it offers financial protection not only in case of demise of a policyholder, but also ensures that the policyholder has sufficient benefits on his/her survival till the maturity of the policy.
|Death Benefit||On demise of the policyholder while the plan is in force, his/her nominee will be entitled to the sum assured. This amount is paid as a lumpsum. Additionally, LIC will credit an amount equivalent to the future premiums payable into the fund. The units in the fund will be paid to the nominee on maturity of the policy, even if the policyholder has passed away.|
|Maturity Benefit||On completion of the policy period, the insurer will pay a maturity benefit to the policyholder/the nominee, as the case may be. An amount equivalent to the fund value will be paid in this case.|
There are no rider options under this plan.
There is a suicide exclusion under the plan, wherein LIC will pay the nominee only the fund value as on date of death if the policyholder commits suicide within a year of purchasing the policy. No other benefits will be provided in this case.
|Loan||No loan facility is offered|
|Free-look period||A policyholder can choose to return the policy if he/she disagrees with the terms and conditions. A 15 day period is provided within which the policy can be returned.|
|Revival||Policies for which the premium has not been paid within the grace period can be revived by paying all dues within 30 days of receiving notice for the same. In case of a discontinued policy, the policyholder can revive it by paying all dues within two years of discontinuance date.|
|Surrender value||Surrender value will be paid, with this amount depending on when the policy is surrendered|
|Guaranteed interest||A policy which has been discontinued will be eligible for an assured interest rate, determined by the insurer|
|Assignment||There is no provision for assignment|
|Partial withdrawal||Permitted, after policy has been in force for 5 years|
|Change in sum assured||No change in sum assured permitted|
|Fund switching||Permitted, subject to payment of switching charges|
Investing in the Flexi Plus Plan from LIC can help one save tax, with the premium eligible for benefits under Section 80C of the Income Tax Act. The government decides the upper limit, with it subject to change. The permissible limit for 2016-17 is Rs.1.5 lakh.
Additionally, the amount received as a death benefit is eligible for tax benefits under Section 10(10D) of the Act.
It is advisable to consult a tax expert to avail all benefits provided by the government.
Most individuals invest in different instruments to meet their future requirements. While a pure investment plan has the potential to offer decent returns, it does not provide life cover. Similarly, a pure insurance plan does not offer a great deal in terms of return on investment.
The Flexi Plus Plan combines the best of both options, offering not just insurance but also assured returns on maturity. This plan enables one to get the best out of a situation. The benefits accorded by the plan provide peace of mind to the policyholder, enabling him/her to concentrate on other factors.
LIC, as an organisation is the most trusted name in the Indian insurance industry, with millions of customers putting their faith in it. Unlike private insurers, there is a limited risk factor when it comes to investing in an LIC policy.
LIC has made improvements in recent years, incorporating modern technology into its products. One can purchase a policy without hassle, at an affordable price. Additionally, the insurer also has an excellent track record when it comes to claim settlement, with the claim settlement ratio standing at an impressive 98.33% for the year 2015-16.
All these parameters make this plan an enticing option for the smart investor.
Note: The plan has currently been withdrawn by LIC.