LIC Profit Plus Plan

• 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

 The Profit Plus Plan from LIC is designed for individuals looking for a life insurance policy which also doubles as a source of investment. An endowment plan which is linked to market units, it offers flexibility in terms of premium payments, with an option to choose from four investment funds. The plan provides protection in a number of scenarios, ensuring that one needn’t worry about the financial future of his/her loved ones.

Eligibility – Who is the LIC Profit Plus for?

Individuals looking to purchase this plan should keep these basic eligibility criteria in mind.

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

Sum Assured – This is the amount which is guaranteed under the plan if the policyholder passes away during the policy period. The sum assured depends on the premium paid by the individual. Under this plan, one can choose to pay the premium regularly or could opt for a single premium wherein the premium is paid upfront, at the time of purchasing the policy.

Premium – Individuals have an option of paying either a single premium or regular premiums. The premium payment term is decided by the policy term, with the minimum premium varying on the mode chosen. One can choose to increase the premium amount based on his/her capacity and the sum assured required.

*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 Profit Plus Plan covers

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

Individuals can enhance the cover under this plan by choosing the Critical Illness Benefit Rider. This rider can be purchased at an additional cost and is active for the period of the plan.

Exclusions – What the LIC Profit Plus does not cover

LIC will not pay the nominee the sum assured in case the policyholder commits suicide within one year of purchasing the policy. In such cases, the nominee will be paid the fund value as on the date of death.

Other Key Features

Tax Benefits – How you can save with LIC Profit Plus

The income tax laws of the country permit one to save money on taxes when they purchase this policy. While the premium amount is eligible for benefits under Section 80C of the Income Tax Act, the amount received as death/maturity benefit is eligible for tax benefits under Section 10 (10D) of the same act.

One should check the provisions of the act in order to truly utilise the benefits.

Why you should buy the LIC Profit Plus Plan?

LIC is regarded as one of the most trustworthy insurance companies in India, with it accounting for a large chunk of the market. The reputation it has built for itself over the years has gone a long way, with most people choosing it over private insurers.

The Profit Plus Plan is a smart option for those looking to protect the interests of their loved ones without worrying about rising costs. With four fund options to choose from, one can be rest assured that their investment grows according to their needs. One can switch funds based on changes in their lifestyle.

Partial withdrawals ensure that there is sufficient liquidity in case of emergencies. The insurance company had a high claim settlement ratio of 98.33% during the year 2015-16, with the grievances solved ratio being 100%, highlighting its dedication to customers. This ensures that a nominee need not run around to receive the death benefit after the policyholder’s demise.