LIC Wealth plus (ULIP) Policy

LIC Wealth plus (ULIP) Policy

Lic Wealth Plus . LIC has launched a Unit Linked plan called Wealth plus plan. LIC's Wealth Plus is a unit linked insurance plan

LIC Wealth Plus plan which is a close ended plan will be introduced on 9th Feb, 2010. Silent features of this plan (Plan No. 801) are as follows:-

LIC's Wealth Plus is a unit linked insurance plan that safeguards investment from market fluctuations, so that investments are protected

1. Unit Linked Plan with Policy Term of 8 years.

2. Free Insurance Cover for 2 years after maturity.

3. Amount payable on maturity will be based on highest NAV in the 1St 7 years or the NAV at the end of 8 years whichever is higher.

4. Accident benefit upto 50 lacs is available.

5. Mode of payment - Single or for 3 years. For 3 ears premium paying term, premium can be paid Monthly, ECS, Quarterly, Half Yearly or Yearly.

6. Min. premium Rs. 2000/- p.m. for monthly (ECS) mode. Rs. 20,000/- p.a. for 3 year term & Rs. 40,000/- for single premium. Maximum premium - NO limit.

7. Min. Age of 10 years & Max. 65 years.

8. Min. Sum Assured - 5 times the annualized premium & 1.25 times Single premium.

9. No top up is allowed.

10. Partial withdrawl is allowed twice in a policy year after premium paying term.

“IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER”

LIC’s Wealth Plus is a unit linked plan that safeguards your investment from market fluctuations, so that your investments are protected in financially volatile times. This plan offers payment of Fund Value at the end of policy term, based on highest Net Asset Value (NAV) over the first 7 years of the policy, or the NAV as applicable at the end of the policy term, whichever is higher. NAV of the fund will be subject to a minimum of Rs. 10/-. The policy term is 8 years with an extended life cover for 2 years after the completion of policy term. This plan will be available for sale for a limited period.

You can pay the premium either in a single lump sum or for 3 years. You can choose the level of cover within the limits, which will depend on your age whether the policy is a Single premium or Limited premium contract and on the level of premium you agree to pay.

Premiums paid after allocation charge will purchase units of the Fund. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).

Payment of Premiums: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the 3 years premium paying term. Alternatively, a Single premium can be paid.

Guaranteed NAV: In this product there is a guarantee of the highest NAV recorded on a daily basis, in the first 7 years of the policy, subject to a minimum of Rs. 10. This means the payment at the end of the policy term will be based on highest Net Asset Value (NAV) recorded over the first 7 years of the policy, or the NAV as applicable on the end of the policy term, whichever is higher. The guarantee will be applicable only for payment made at the end of the policy term irrespective of any partial withdrawals made during the policy term. The period of 7 years starts from the date of commencement of policy.

Eligibility Conditions and Other Restrictions:

(a) Minimum Age at entry - 10 (age last birthday)

(b) Maximum Age at entry - 65 years (age nearer birthday)

(c) Policy Term - 8 years

(d) Extended Life Cover - 2 years after the completion of policy term

(e) Minimum Premium:

3 years Premium Paying policies - Rs. [20,000] p.a.

(Other than monthly (ECS) mode)

Monthly (ECS) mode - Rs. [2,000] p.m.

Single premium policies - Rs. [40,000] p.a.

(f) Sum Assured under the Basic Plan -

Minimum Sum Assured:

3 years Premium Paying Term: 5 times the annualized premium

Single Premium: 1.25 times the single premium.

Maximum Sum assured:

3 years Premium Paying Term:

10 times the annualized premium if age at entry is upto 50 years

5 times the annualized premium if age at entry is 51 years and above

Single Premium:

5 times the Single premium if age at entry is upto 40 years.

2.5 times the Single premium if age at entry is 41 to 50 years.

1.25 times the Single premium if age at entry is 51 years and above.

Where the minimum Sum Assured is not in the multiples of Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000. Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall in multiples of Rs. 500/-.

Other Features:

i) Partial Withdrawals: Youmay encash the units partially after the third policy anniversary subject to the following:

In case of minors, partial withdrawals shall be allowed from the policy anniversary coinciding with or next following the date on which the life assured attains majority (i.e. on or after 18th birthday).

Partial withdrawals will be allowed twice in a policy year.

Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units subject to a minimum amount of Rs. 2000/-.

Under 3 years Premium Paying Term policies where less than 3 years’ premiums have been paid and further premiums are not paid, the partial withdrawals shall not be allowed.

Under 3 years Premium Paying Term policies where all the’ premiums have been paid, partial withdrawal will be allowed subject to Policyholder’s Fund Value being at least one annualized premium

Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of 25% of the single premium in the Policyholder’s Fund Value.