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LIC Flexi Plus Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

 

LIC Flexi Plus Plan

LIC Flexi Plus Plan is a simple Unit Linked Insurance Plan. Thus, it is a Non-Traditional Insurance Plan without Bonus facility.
 
How it works – In this plan, premium needs to be paid for the entire policy tenure. The premium that is paid is invested in either of the 2 available funds-Debt Fund or Mixed Fund, as per the risk appetite of the policyholder.
 
Thus, the Fund Value is paid on policy maturity as Maturity Benefit to the policyholder. However, if the Life Insured dies within the policy tenure, then the nominee gets the Sum Assured as immediate Death Benefit and policy continues. The future premiums are waived off and paid by the company so as to pay the Fund Value of policy maturity as per schedule.
 
There are no additional riders in this plan.
 

Key Features of LIC Flexi Plus Insurance Plan

  • It is a simple Unit Linked Insurance Plan where the Sum Assured is fixed at 10 times the Annualized Premium or 105% of the total premiums paid including any premiums which have fallen due but not paid, whichever is higher
  • In this plan, premium needs to be paid for the entire policy tenure
  • There are 2 funds for Investment -Debt Fund or Mixed Fund
  • The Fund Value is paid on policy maturity as Maturity Benefit to the policyholder
  • If the Life Insured dies within the policy tenure, then the nominee gets:
    • The Sum Assured as immediate Death Benefit and policy continues
    • The future premiums are waived off and paid by the company
    • The Fund Value is paid on policy maturity as per schedule

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Benefits you get from LIC Flexi Plus Insurance Policy

Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets the Sum Assured as immediate Death Benefit and policy continues. The future premiums are waived off and paid by the company so as to pay the Fund Value of policy maturity as per schedule.
 
Maturity Benefit – When the policy matures, the Fund Value is paid to the policyholder as Maturity Benefit.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions
 

 

Eligibility conditions & other restrictions in LIC Flexi Plus Policy

 
 
Minimum
Maximum
Sum Assured (in Rs.)
(10 X Annualized Premium) or (105% of the total premiums paid including any premiums which have fallen due but not paid) whichever is higher
Policy Term (in years)
10
20
Premium Payment Term (in years)
 
 
Entry Age of Life Insured (in years)
18
50
Age at Maturity (in years)
-
60
Annualized Premium (in Rs.)
15,000
1,00,000
Payment modes
Yearly, Half-Yearly, Quarterly and Monthly
 
 

Additional Features and Benefits of LIC Flexi Plus Plan

Riders – There are No Additional Riders in this plan
 
Investment Fund Options - In this plan, there are 2 Funds:
  1. Debt Fund
  2. Mixed Fund
 
Top-up – Not Allowed in this plan.
 
Switching - There are 4 free switches allowed in each policy year beyond which there is a charge of Rs 100 applicable to each switch.
 
Partial Withdrawal - In this policy, partial withdrawal is allowed after the 5th policy anniversary. Partial withdrawal shall be allowed subject to a minimum balance of two annualized premiums in the Fund.
 

Charges in LIC Flexi Plus Plan

Premium Allocation Charge – This charge is deducted from the Premium Paid by you

 

Policy Year
Premium Allocation Charge
1st
7.5% of the premium
2nd to 5th
5% of the premium
6th onwards
3% of the premium
 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.

 

Policy Year
Policy Administration Charge(Per Month)
1st Year
Rs 50
2nd Year
Rs 41.20
3rd Year
Rs 42.44
4th Year
Rs 43.71
5th Year
Rs 45.02
6th Year onwards
Rs 34.78, escalating at 3% p.a. thereafter
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

 

Type
Charge
Debt Fund
 0.50% p.a. of Unit Fund
Mixed Fund
 0.60% p.a. of Unit Fund
 
 
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

 

Year of Discontinuation
Annual Premium <= Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,500
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 7.5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,750
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,250
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 750
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates.
 
 

What happens if?

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate as applicable to saving bank account of State Bank of India and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Fund Value will be payable to the nominee.
 
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate as applicable to saving bank account of State Bank of India and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 
If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
You want a loan against your policy - There is no loan available under this plan.

 
NAV of all funds in LIC Flexi Plus Plan
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