LIC ULIP Plans

• 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 Insurance Corporation of India (LIC) - the country’s leading insurance provider in terms of market value - has a few unit-linked insurance plans on offer for its vast customer base. These plans provide the benefit of insurance cover and investment at the same time, all for a few simple premiums. Here’s how ULIPs work - the policyholder pays their premium for a cover of their choice. Part of the premium paid goes into providing insurance cover, while the remaining amount will be invested in a variety of funds. These funds range from debt instruments to equity markets, and the investment is made depending on the policyholder's’ risk appetite.

Founded in 1956, LIC is the most trusted insurance company in India with an asset value of over $300 billion. The ULIPs offered by the company carefully take into account the market conditions and also the financial requirements of a prospective applicant to offer them a customised plan. These plans serve the main aim of providing a large corpus to a family in case the person insured meets with an untimely death.

Benefits of LIC Life Unit Linked Insurance Plans

• ULIPs offered by the Life Insurance Corporation of India offer two key benefits to a policyholder - life insurance cover and mutual fund investment - both for a small premium.
• These ULIPs have multiple funds options for the policyholder to choose.
• A policyholder can choose a premium payment frequency that is agreeable to them.
• When ULIP plans mature, the policyholder will be returned the total fund value their policy accumulates.
• These ULIPs comes with a few tax benefits, for instance there’s a tax deduction on premiums paid and also on the death benefit - if any - received by the person insured’s nominees.

List of Unit Linked Insurance Plans offered by LIC

At present, LIC offers only one unit-linked insurance plan, which is as follows:

LIC’s New Endowment Plus Plan

The New Endowment Plus Plan is a unit-linked, non-participating policy, which offers a number of key benefits to the policyholders.

Features and benefits of LIC’s New Endowment Plus Plan:

• The Endowment Plus Plan is a health combination of insurance cover market investment and offers long term savings along with protection for a policyholder and his/her family.
• A policyholder can choose from four different fund options depending on their risk appetite.
• The premiums a policyholder pays will be deducted of premium allocation charges and the remaining amount will be invested in a fund of their choosing.
• Each policyholder can choose between monthly, quarterly, half-yearly, and yearly modes of premium payment.
• Premiums can only be paid through ECS mode.
• The policy comes with a grace period of 30 days (for quarterly, half-yearly, and yearly premium payment modes) and 15 days (for monthly premium payment mode).
• A policyholder can opt for riders once they avail this policy.
• The Endowment Plus policy comes with tax benefits based on the prevailing tax laws.
• Benefits payable under this plan are as follows:
  • Maturity Benefit: If the person insured survives till the policy’s maturity date, an amount equal to the policy fund value will be paid and the policy will be terminated.
  • Death Benefit: There are two clauses in this case. If the person insured dies before the commencement of the risk, an amount equal to the policy’s fund value will be paid to the nominees and the policy will be terminated. On the other hand, if the person insured dies after the commencement of the risk, an amount higher of the the basic sum assured or the policy’s fund value will be paid. Note that, basic sum assured here is either 10 times the annualised premiums or 105% of the total premiums paid, whichever is higher.

Why you should buy ULIPs from Life Insurance Corporation of India?

Besides the fact that LIC is the oldest insurer the country, there are several reasons why you should buy the unit-linked plans offered by the company. Here’s a few of them mentioned below:

• Highest claim settlement figures: As of writing this page, LIC has the highest claim settlement ratios of all the life insurance companies in India. The company has settled over 98.33%, which is a two percentage point more than its closest competitor. So, if you are planning to buy the ULIP from LIC but are worried about claim settlement, you can put those worries away.
• Biggest life insurer in India: Based on recent date, LIC has assets totaling $310 billion, which is the total worth of the company’s next few competitors put together. The company is valued so high because it has a lion’s share of the market when it comes to acquiring customers.
• Online services: Despite the company being the oldest in India, it still has kept up with the changing times and offers a variety of online services including - but not limited to - premium payments, grievance redressal and several aspects of customer relations. The company’s website also provides access to online calculators which help prospective customers calculate the premiums for the plan they are looking to buy.