The Fortune Plus Plan from Life Insurance Corporation of India (LIC) is a unit linked insurance plan, wherein the policyholder will have to pay premiums for the first 5 policy years only. Under this plan, the payable premium for the first year will amount to 50% of the total premium payable during the policy tenure. Policyholders can choose to invest in any one of the 4 funds offered by the insurer, as per his/her appetite for risk. The minimum premium under this policy is Rs.20,000, which is payable as the first premium amount. Policyholders can avail tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
LIC has a predefined eligibility criteria which customers who wish to purchase this policy need to keep in mind.
|Parameters||Criteria for eligibility|
|Minimum age at entry||12 years|
|Maximum age at entry||60 years|
|Minimum age at maturity||18 years|
|Maximum age at maturity||65 years|
The sum assured is the amount of money which the insurer guarantees to pay to the policyholder/nominee before any bonuses are included. Thus, this sum of money is what is guaranteed to you by the insurance company.
|Sum Assured||Highest of:
The premium is a certain sum of money that the policyholder pays to the insurer in order to enjoy the risk cover provided by the policy.
|Minimum term of the policy||5 years|
|Maximum term of the policy||20 years|
|Premium Payment Mode||
|Minimum Single Premium Amount||Rs.20,000 (as first premium)|
*Premiums vary based on age, location, plan term, and other factors.
|Death Benefit||If the policyholder passes away during the policy tenure, the nominee will be paid the sum assured or the fund value, based on whichever is the higher of the two.|
|Maturity Benefit||At the completion of the policy tenure, the life assured will be paid the fund value.|
If the policyholder is over 18 years of age, he/she can opt for an additional Accident Benefit rider, provided it is over the minimum amount of Rs.25,000 and under the maximum amount of Rs.50 lakh. Thus, in case the policyholder meets with an accidental death, the Accident Benefit will be paid to the nominee in addition to the base policy’s sum assured amount.
If the policyholder happens to commit suicide within 12 months of purchasing the insurance policy, the insurer will pay the fund value to the nominee. No death benefit will be paid by the insurer.
Other Key Features – Free-Look Period, Surrender Value, Grace Period, etc.
|Free-Look Period||Policyholders can return their policy within the 15-day free-look period.|
|Revival||A lapsed policy can be revived within 2 years from the date of the first premium that was unpaid.|
|Loan||Policyholders are not provided the option to avail a loan against this policy.|
|Surrender Benefit||If the policy is surrendered after the completion of 3 policy years, the insurer will pay the fund value of the policy as the surrender benefit to the policyholder.|
|Assignment||Assignment facility is provided for this policy.|
The premiums that one pays towards this policy and the payouts received are both eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. However, it should be noted that tax laws can change without prior notice. Thus, make sure to consult with a tax advisor from time to time.
The Fortune Plus Plan from LIC provides policyholders a risk cover against death and the option to invest in funds, thus helping them increase their wealth over a period of time. The policy also offers the option of making partial withdrawals after the third policy year, thus helping policyholders meet any emergency liquidity needs.
Life Insurance Corporation of India (LIC) is one of the oldest and most preferred insurance providers in the nation. With a claim settlement ratio of 98.33% for FY15-16, it is safe to assume that the likelihood of one’s claim being settled in a hassle-free manner is rather high. The insurer has also won a range of awards for their services, product offerings, etc.
Note: This plan has been withdrawn by LIC.