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.
Key Features
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
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
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 |
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 |
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 |
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 |
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.
Benefits
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.
When the policy matures, the Fund Value is paid to the policyholder as Maturity 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
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.
Eligibility
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 |
FAQs
There are No Additional Riders in this plan
Not Allowed in this plan.
There are 4 free switches allowed in each policy year beyond which there is a charge of Rs 100 applicable to each switch.
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.
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.
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.
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.
There is no loan available under this plan.