The Money Plus 1 Plan from Life Insurance Corporation of India (LIC) is a unit-linked endowment life insurance plan. This policy provides a risk cover on the life of the policyholder and if the policyholder passes away during the policy tenure, his/her nominee is provided a substantial death benefit. Further, if the policyholder survives till maturity of the policy tenure, a maturity benefit will be paid to him/her.
The minimum premium payable is Rs.1,000 under the monthly mode of premium payment for a policy tenure of 15 to 30 years. Policyholders can also choose to invest in the Accident Benefit Option or the Critical Illness Benefit Rider, which are offered as add-ons, if they wish to enhance the coverage provided by this plan. Policyholders will be able to avail tax benefits, as per the prevailing Income Tax laws.
Before purchasing this policy, policyholders will have to ensure that they meet the insurer’s eligibility criteria.
|Parameters||Criteria for eligibility|
|Minimum age at entry||0 years|
|Maximum age at entry||65 years|
|Minimum age at maturity||18 years|
|Maximum age at maturity||75 years|
The sum assured is the basic sum of money that the insurer is liable to pay to the policyholder/nominee, based on the eventuality.
|Minimum Sum Assured||5 x Annualised Premium|
|Maximum Sum Assured||
Premiums are a certain sum of money that the policy buyer will have to pay to the insurer in order to avail the policy’s coverage. The premium will have to be paid as per the premium payment mode.
|Premium Payment Mode||
|Minimum Single Premium Amount||Rs.1,000 p.m.|
|Maximum Single Premium Amount||Rs.15,000 p.a.|
*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||Upon completion of the policy tenure, a maturity benefit amounting to the Fund Value will be paid to the life assured.|
Policyholders who wish to customise this policy can purchase the Accident Benefit Option, if they are over the age of 18 years, or the Critical Illness Benefit Rider, if they are between 18 and 50 years of age, by paying an additional premium.
If the life assured commits suicide within a year of purchasing of policy, only the Fund Value will be paid to the nominee. No other death benefit will be payable.
|Free-Look Period||The free-look period for this plan is 15 days. Policies can be returned during the free-look period.|
|Revival||The policyholder has the option of reviving their lapsed policy within a period of 2 years.|
|Surrender Benefit||If the policy is surrendered after the completion of 3 policy years, the Fund Value will be paid as the surrender benefit.|
|Loan||There is no provision to avail a loan against this policy.|
|Assignment||Assignment facility is provided by the insurer.|
Policyholders can avail tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. However, tax laws can change without prior notice, thus policyholder will have to make sure to consult with a tax advisor from time to time.
The Money Plus 1 Plan from LIC provides a range of important benefits to policyholders and is an attractive investment cum protection instrument. Policyholders can invest in any fund of their choice and avail the resulting returns, thus helping them increase their wealth over a period of time. The policy also offers a death benefit in case the life assured passes away during the policy tenure and a maturity benefit if the policyholder survives till completion of the policy term.
Life Insurance Corporation of India (LIC) is one of the leading life insurance firms in India. The company has a large and diverse consumer base and has a varied range of insurance products to help meet the needs of their customers. The insurer has reported a claim settlement ratio of 98.33% for FY15-16, which was one of the highest in the country.
Note: This policy has been withdrawn by LIC.