Life Insurance Corporation of India (LIC) announced the launch of its new unit linked life insurance product, LIC Index Plus. The date of launch as per a BSE notification by LIC on February 5, states LIC Index Plus will be available for purchase from February 6, 2024.
According to the BSE press release, “Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Corporation has announced the launch of its new product available for sale from February 6, 2024.”
The details of the said product are as follows:
a) Name of the Product: LIC’s Index Plus
b) Date of Launch: February 6, 2024
c) Category of Product: Unit Linked, Non-participating, Individual Life Insurance Plan
d) Whether caters to domestic and international market: Domestic market.
What is LIC’s Index Plus?
According to LIC press release, “LIC’s Index Plus is a unit linked, regular premium, individual life insurance plan which offers life insurance cover cum savings throughout the term of the policy. Guaranteed additions as a percentage of Annualized Premium shall be added to the unit fund on completion of specific duration of policy years under an in-force policy and shall be utilized to purchase units.”
Important features of LIC’s Index Plus
Minimum and maximum entry age
The minimum age for entry is 90 days (completed). The maximum age at entry is 50 or 60 years (nearer birthday), depending on the basic sum insured.
Minimum Age at maturity is 18 years (completed) and Maximum Age at maturity is 75 or 85 years (nearer birthday) depending on the basic Sum Assured.
The Basic Sum Assured ranges from 7 to 10 times the annualised premium for ages 90 days (completed) to 50 years (nearer birthday), and 7 times the annualised premium for ages 51 years to 60 years.
The minimum policy term is 10 or 15 years, depending on the annualised premium, while the maximum term is 25 years. Premium payment terms are the same as policy terms.
Minimum Premium ranges
Minimum Premium ranges from Rs. 30000/-(Yly), Rs.15000/-(Hly), Rs 7500/- ( Qly), Rs 2500/- Mly (NACH) depending upon the Mode/Premium payment frequency. Maximum Premium-No limit subject to underwriting decision.
Option to choose
There is an option to choose any one of the two funds to invest premiums initially and at the time of switching, i.e. Flexi Growth Fund and Flexi Smart Growth Fund wherein investment will be primarily in selected stocks which are a part of NSE NIFTY 100 index or NSE NIFTY50 index respectively.
Other important features
- Partial withdrawals available subject to conditions.
- On Life Assured surviving the Date of maturity, an amount equal to Unit fund Value as on date of maturity shall be payable.
- Amount payable on death of Life assured differs depending upon whether death of life assured is before the date of commencement of risk or after the date of commencement of risk.
- Refund of Mortality Charges are subject to terms and conditions.
- There is an option of availing LIC’s Linked Accidental Death benefit rider.
- There is an option to partially withdraw the units at any time after the 5 years’ lock-in period subject to conditions.
- The Plan is a Non-Participating Plan.