Investors in LIC SIIP can invest in ULIPs with insurance coverage and various benefits. This investment also helps them in emergency situations.
LIC SIIP is a unit-linked insurance plan that combines investment opportunities with insurance protection. It allows policyholders to choose from a mix of equity and debt fund options based on their risk profile to generate higher returns.
This plan can provide comprehensive financial coverage to the insured’s family for any kind of contingencies. Within a few years, the policy can help investors grow their savings into a sizeable corpus that they can use to finance important life events.
To be eligible for LIC SIIP, the policyholder must be at least 90 days old, with a maximum age of 65 years. The policy term ranges from 10 to 25 years, with a minimum sum assured of 10 times the annual premium for persons below 55 years of age and 7 times for those above 55 years of age. The minimum premium amount ranges from Rs.4,000 to Rs.40,000 depending on the frequency of payment.
LIC SIIP offers a wide range of benefits to the policyholders, which include death and maturity benefits as well as guaranteed benefits. If the life assured dies before the commencement of risk, an amount equal to the Unit Fund Value is payable to the beneficiary. If the policyholder survives till the date of maturity, the Unit Fund Value is payable by the insurer along with a refund of the mortality rate.
LIC SIIP also offers facilities like four fund options to choose from, free switch between funds, add-on rider benefits to enhance the coverage of the policy and tax benefits under the Income Tax Act. The policyholder can also withdraw partial amount after completion of five policy years.
LIC SIIP has two optional benefits – an Accidental Death Benefit rider option and partial withdrawal facility. The Basic Sum Assured of the policy cannot exceed the Accidental Death Benefit Sum Assured. Partial withdrawal can be made in the form of a fixed amount or a fixed number of units.
LIC SIIP offers four fund options to choose from – Bond Fund, Secured Fund, Balanced Fund and Growth Fund. The investment pattern of these funds varies depending on the type of securities they invest in and the risk appetite of their portfolio.
For example, if a policyholder invests Rs 50,000 in the Balanced Fund option of LIC SIIP for ten years, he gets a guaranteed growth of 10%. In this the total fund value after ten years will be Rs.9,39,700.
