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  • LIC Market Plus I Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    Life after retirement can be challenging, especially if one hasn’t planned for it. With limited financial resources, one might be forced to look towards other avenues to make ends meet. The Market Plus 1 plan from Life Insurance Corporation of India is a deferred pension plan which is linked to market instruments. An individual can customise the plan to meet his/her personal requirements, with it being a perfect partner for retirement.

    Eligibility – Who is the LIC Market Plus 1 Plan for?

    Individuals looking to secure their retired life through this plan should keep these basic eligibility criteria in mind.

    Parameters Criteria for eligibility
    Minimum age at entry 18 years
    Maximum age at entry For basic plan which does not provide life cover:
    • 75 years for regular premium policy
    • 80 years for single premium policy
    For basic plan which provides life cover:
    • 65 years
    Minimum vesting age 40 years - For basic plan which does not provide life cover 40 years - For basic plan which provides life cover
    Maximum vesting age 85 years - For basic plan which does not provide life cover 75 years - For basic plan which provides life cover

    Sum Assured and Premium Range – What you get and what it costs

    Sum Assured – Individuals who opt for life cover are provided a sum assured. The amount payable is equivalent to the basic assured amount plus the fund value on a given date. Alternately, people who haven’t opted for life cover are provided a vesting benefit. The sum assured/vesting benefit depends on the premium amount paid by the individual.

    The table below highlights the sum assured for this plan.

    For basic plan which does not provide life cover No sum assured
    For basic plan which provides life cover Minimum
    • Rs.30,000
    Maximum
    • For single premium – equivalent to premium amount
    • For regular premium –
    Entry age Sum assured
    Below 40 years
    • 10 times annualised premium – If critical illness rider is purchased
    • 20 times annualised premium if critical illness rider is not purchased
    41 years and more
    • 5 times annualised premium – If critical illness rider is purchased
    • 10 times annualised premium if critical illness rider is not purchased

    Premium – Under this policy, one can choose to pay either a single premium or regular premiums. Regular premiums can be paid either annually, half-yearly, quarterly, or monthly. The table below highlights the premium options provided under this plan.

    Basic plan without life cover Minimum Premium
    • Single premium – Rs.30,000
    Deferment term Amount for modes other than monthly payment
    20 years or more Rs.5,000 per annum
    15 – 19 years Rs.10,000 per annum
    10 – 14 years RS.15,000 per annum
    Deferment term Amount for monthly payment mode
    15 years or more Rs.1,000 per month
    10 – 14 years Rs.1,500 per month
    Basic plan with life cover Minimum Premium
    • Single premium – Rs.30,000
    Deferment term Amount for modes other than monthly payment
    20 years or more Rs.5,000 per annum
    15 – 19 years Rs.10,000 per annum
    10 – 14 years RS.15,000 per annum
    Deferment term Amount for monthly payment mode
    15 years or more Rs.1,000 per month
    10 – 14 years Rs.1,500 per month

    *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.

    Plan Coverage – What the LIC Market Plus 1 Plan covers

    The Market Plus 1 plan is designed to offer not just retirement solutions, but can also double as a life cover if one chooses to secure his/her life. As such, the coverage depends on the option chosen by the policyholder. The table below highlights the protection provided by the plan under different scenarios.

    Death Benefit Individuals who have chosen the life cover option are eligible for a death benefit under the plan. In such cases, the nominee will be paid the sum assured plus the fund value if the policyholder passes away. There is no death benefit payable in cases where the life cover is not chosen.
    Vesting Benefit In case of survival of policyholder till the vesting date, the fund value will be used to provide pension. Alternately, the policyholder can choose to receive a third of the amount as a single lump sum amount, or opt to purchase a pension plan.

    Riders/Add-on plans – Additional coverage under the LIC Market Plus 1 Plan

    There are two rider options provided under this plan, namely:

    • Accident Benefit – Under this rider, the policyholder will be paid an additional amount if he/she passes away due to an accident. The minimum amount assured under this plan is Rs.25,000, whereas the maximum amount is Rs.50 lakh.
    • Critical Illness Benefit – Under this rider, an amount equivalent to the critical illness sum assured will be paid if the policyholder is diagnosed with any critical illness during the policy term.

    Exclusions – What the LIC Market Plus 1 Plan does not cover

    The suicide exclusion under the plan states that LIC will pay only the fund value if the policyholder commits suicide within a year of purchasing the policy.

    Other Key Features

    Loan No loan provision
    Fund options Four funds:
    • Bond Fund – low risk
    • Secured Fund – medium risk
    • Balanced Fund – medium risk
    • Growth Fund – high risk
    Free-look period 15 days
    Revival Lapsed policies can be revived by paying all dues within 2 years of first missed premium
    Surrender value Payable, subject to the policy being in force for a minimum of three years
    Reinstatement Surrendered policies cannot be reinstated
    Assignment Permitted
    Partial withdrawal Not permitted
    Fund switching Permitted, with 4 free switches permitted each year

    Tax Benefits – How you can save with the LIC Market Plus 1 Plan

    Policyholders can avail tax benefits on the premium paid by them. As such, a maximum of Rs.1.5 lakh can be claimed as deduction under Section 80C of the Income Tax Act. Additionally, any sum received as death benefit is eligible for benefits under Section 10(10D) of the same act.

    Why you should buy the LIC Market Plus 1 Plan?

    Most of us are accustomed to a certain lifestyle during our working days, with it becoming hard to maintain the same after retirement. A good pension plan can financially support one during retirement. As such, the Market Plus 1 plan ensures that a policyholder is financially independent, even if he/she chooses not to work.

    The policy can be customised to meet individual requirements, with four fund options to choose from. Additionally, the policy offers market linked returns, which can beat inflation. The option to enhance the cover by adding riders can help one prepare for the future.

    LIC is the largest life insurance company in India, with millions of people putting their trust in it. As such one can purchase a policy and forget about all hassles. The company has an excellent track record, having achieved a claim settlement ratio of 98.33% during the year 2015-16.

    Note: This plan has currently been withdrawn by LIC.