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LIC Launches New Unit-Linked Policy: Check Details

Submitted by admin on February 7th, 2024

Life Insurance Company of India or LIC announced to launch LIC Index Plus, a new unit liked insurance product. As per a new BSE notification by LIC on Monday, LIC Index Plus was made available for purchase from yesterday, February 6, 2024.

A BSE press release states, “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.”

LIC Index Plus is a unit linked and non-participating insurance product aimed at catering to the domestic market.

About LIC’s Index Plus 

An LIC press release states that LIC Index Plus is a unit-linked, individual health insurance product that offers life insurance coverage cum savings throughout the tenure of the policy. This health insurance plan comes with the responsibility of paying regular premium.

“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.” The LIC spokesperson has gone further to explain.

LIC Index Plus: Key Features 

Age Limit: The minimum age to be eligible for the health insurance plan is 90 days (completed). The maximum age is 50/60 years (nearer birthday), depending on the basic amount insured.

The minimum age at maturity is 18 years (completed) and the maximum age at maturity is 75/85 years (nearer birthday) depending on the basic amount insured.

Minimum Premium Ranges: Depending on the Mode/Premium payment frequency, the minimum premium ranges from Rs. 30000/-(Yearly), Rs.15000/-(Hly), Rs 7500/- (Quarterly), Rs 2500/- Mly (NACH).

Maximum Premium-No limit subject to underwriting decision

Annualized Premium: The basic sum assured ranges between 7 and 10 times the annualized premium for ages ranging from 90 days (completed) to 50 years (near birthday) and 7 times the annualized premium for ages between 50 and 60 years.

The minimum policy tenure is 10-15 years, subject to the annualized premium whereas the maximum tenure is 25 years. There is no difference between premium payment terms and policy terms.

Option to Choose

Potential purchasers will get an option to choose any one from two available funds to invest premiums primarily at the time of making a switch – Flexi Smart Growth Fund and Flexi Growth Fund, in which, investment will be primarily be made in chosen stocks that are a part of NSE NIFTY50 index or NSE NIFTY 100 index respectively.

Other Key Features

Partial withdrawal allowed subject to conditions

On Life Assured surviving the Date of Maturity, a sum equal to fund value as on the Date of Maturity will be payable.

If it comes to refunding, morality charges are subject to terms and conditions.

The sum payable on death of Life assured varies depending on whether the death of life assured takes place before or after the date of risk commencement.

One can partially pull out the units at any time after the lock-in period of 5 years, subject to certain conditions.

There is an option to avail LIC’s Linked Accidental Death Benefit rider.

It’s a Non-Participation Plan.