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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.

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Sum Assured Benefit
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Maturity Benefit
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Death Benefit
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Key Features

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Sum Assured Benefit

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

Fund Options

There are 2 funds for Investment -Debt Fund or Mixed Fund

Maturity Benefit

The Fund Value is paid on policy maturity as Maturity Benefit to the policyholder

Death Benefit

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

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.

Benefits

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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

How it works

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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

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  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

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angle down iconIs Rider availabe in this plan?

There are No Additional Riders in this plan

angle down iconIs top-up available in this plan?

Not Allowed in this plan.

angle down iconIs switching available 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.

angle down iconIs partial withdrawal available in this plan?

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.

angle down iconWhat 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.

angle down iconWhat happens if 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.

angle down iconWhat happens if 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.

angle down iconWhat happens if you want a loan against your policy?

There is no loan available under this plan.