LIC’s Superannuation Plus Plan is a defined contribution, unit linked insurance plan for the management of superannuation funds that are provided by the organisation. The returns that one is eligible to receive by way of this scheme is market linked, and will thus vary based on the performance of the fund. This scheme is ideal for organisations that wish to give employees flexibility in terms of choosing their investment. Members enrolled under this scheme are also eligible to avail tax benefits under the prevailing laws of the Income Tax Act.
|Annuity||The amount that is available to each member is the value of units that are in one’s fund. One part of this amount can be commuted as per the rules set forth by the insurer. The remaining part of this amount can be used to purchase annuity. The annuity and the commuted value can be paid to the policyholder or to the nominee, with consent of the life assured.|
|Choice of Investment Funds||Policyholders can choose to invest in any of of the four funds offered by the insurer, as per his/her appetite for risk. The fund types offered by the insurer include:
|Fund Switching||In case of changes in market conditions or poor performance of a fund, the policyholder has the option to switch between funds offered by the insurer. LIC offers customers four free switches per policy year. Any switches post this will be charged.|
|Surrender Value||This policy can be surrendered at any time after the policy makes the first contribution. The surrender value payable to the master policyholder will equal the total of the value of units for all members.|
|Charges||Since this is a unit-linked policy, certain charges will be levied by the insurer, such as:
|Top-Ups||The master policyholder can pay top-ups of the contribution amount for the members during the policy tenure.|
|Flexibility of Contributions||The policyholder can pay the contributions at any time during the given policy year.|
The policyholder/members can avail tax benefits as per the Income Tax Act. Tax laws are subject to change without prior notice, and hence the policyholder will have to consult with a tax advisor from time to time, to avail maximum benefits.
The Superannuation Plus Plan from Life Insurance Corporation of India (LIC) is a group insurance plan that can help you secure the lives of your employees/members by providing them a source of fixed income by way of the annuity payments.
Life Insurance Corporation of India (LIC) is one of the largest public-sector insurance firms in the country. The insurer has a wide range of policies on offer with varying benefits and payouts to cater to the needs of the Indian public. The insurer has reported a claim settlement ratio and grievances resolved ratio of 98.31% and 100%, respectively, for FY16-17. The insurer has been awarded several times in the past few years for their customer-centric approach and services.
Note: This policy has been withdrawn by LIC.