LIC Nomura Mutual Fund in association with Life Insurance Corporation of India introduced an auto premium payment system through the introduction of Auto Premium Payment System. Under this system premium amount of the investors will be remitted on due date to LIC by LIC Nomura mutual fund out of the investors available fund balance.
Under this, the investor has the benefit of not remembering of making payment of premium all the time thereby saving the possible lapse of the policy.
The process to be followed in availing the benefit of auto premium payment is that the investor has to invest in any one of the following 3 schemes:
LIC Nomura MF Liquid Fund
LIC Nomura MF Saving Plus Fund
LIC Nomura MF Income Plus Fund
Once the investor selects the fund, the investor has to give the mandate for auto debit of premium. This facility is not restricted to new investors, even existing investors can avail this facility. Only thing is that the investor should have sufficient balance in the scheme for making payment of premium.
In addition to the above, investing in the above schemes will be beneficial as it not only will generate more return than savings bank interest but will also ensure easy cash liquidity when need arises.
Mr. Nilesh Sathe, Director and Chief Executive Officer of LIC Nomura Mutual Fund said that the introduction of auto premium payment system will create a unique and trouble free avenue for payment of premium and will also ensure timely payment thereby minimizing the chances of policy being lapsed.
