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  • LIC Market Plus-I Plan

    LIC Life Insurance

    LIC Market Plus I is a unit linked deferred pension plan that is available with or without the option of Life cover. The plan offers added benefits of being able to choose the level of cover within limits of the policy that are dependent on payment mode of premiums and the value of premiums paid. It also offers a choice of four investment funds with varying degrees of risk exposure for the policyholder to choose from


    Eligibility Conditions for LIC Market Plus-I

    Conditions for basic plan without life cover:

    • Minimum age of entry as at last birthday is 18 years
    • Maximum entry age for regular premium is 75 years as at last birthday
    • Maximum entry age for single premium is 80 years as at last birthday
    • Minimum vesting age is when policyholder attains 40 years of age
    • Maximum vesting age is when policyholder attains 85 years of age
    • Minimum deferment term is 10 years for regular premium and 5 years for single premium

    Conditions for basic plan with life cover

    • Minimum age of entry as at last birthday is 18 years
    • Maximum entry age is 65 years
    • Minimum vesting age is 40 years with maximum age of vesting being 75 years
    • Minimum deferment term is 10 years for regular premium and 5 years for single premium
    • Minimum sum assured is Rs 30,000
    • Max sum assured is equal to Single premium amount under single premium option
    • Max sum assured for regular premium with critical illness rider is 10 times the annualized premium if age of entry is below 40 years and 5 times the annualized premium if age of entry is above 40 years
    • Max sum assured for regular premium without critical illness rider is 20 times the annualized premium if age of entry is below 40 years and 10 times the annualized premium if age of entry is above 40 years

    Premiums for plans with or without Life cover is as follows

    Type Per Annum Per Month
    Regular Premium Rs 5000 for deferment periods above 20 years Rs 1000 for deferment period of 15 to 19 years
      Rs 10,000 for deferment period between 15 to 19 years Rs 1500 for deferment term of 10 to 14 years
      Rs 15,000 for deferment period of 10 to 14 years  
    Single Premium Rs 30,000 for Deferment term of 5 years and higher  

    Key Features of LIC Market Plus-I

    • Plan type - Unit Linked Deferred Pension Plan
    • Plan basis - Individual
    • Premium paying terms - Single Payment or Regular Payment
    • Policy term - 10 to 35 years
    • Maturity benefits - Value of Policyholder’s fund converted into annuity effective immediately
    • Premium payment frequency - Yearly, Half-yearly, semi-yearly or quarterly and monthly through ECS mode
    • Guaranteed Additions - No guaranteed additions are provided but policyholder can make additional premium top ups in multiples of Rs 1000
    • Medicals - The plan requires medical examinations as applicable and decided upon during time of choosing of plan and premium amount
    • Grace period - The policy offers a grace period of 15 days during which policies returned will be refunded less any charges incurred through medical reports and other mandatory charges
    • Policy revival - Policies can be revived within 2 years from the date of first unpaid premiums.
    • Alterations The policy has provisions for alterations which incur a charges as per rate of service tax. The effective rate is 10.3%
    • Nomination - Policy allows for nomination
    • Sum Assured (Applicable for only life cover option) - Minimum: Rs. 30,000
    • Maximum: Max sum assured is equal to Single premium amount under single premium option or 10 times the annualized premium if age of entry is below 40 years and 5 times the annualized premium if age of entry is above 40 years for regular premium with critical illness rider or 20 times the annualized premium if age of entry is below 40 years and 10 times the annualized premium if age of entry is above 40 years for regular premium without critical illness rider
    • Policy coverage- Death benefits and benefits on surviving the vesting date of the policy
    • Partial withdrawals are not allowed under this plan
    • Switching between funds is allowed subject to switching charges
    • Risk cover cannot be increased but can be decreased once a year during term of the policy after all due premiums have been paid. Once decreased, the cover cannot be increased or restored
    • If policyholder commits suicide within 1 year of policy commencing, the death benefit paid is equal to the current fund value of units held in policyholder's unit account

    Key Benefits of LIC Market Plus-I

    • Death Benefit: If the policy is chosen without life cover, then the death benefit payable to the nominee or legal heir is equal to the policyholder’s fund value which will be paid out either as lump sum or in the form of pension. If the policy is taken with life cover, the death benefit paid to nominee is the sum assured under the basic plan along with the policyholder’s fund value either as a lump sum or by way of pension. The pension amount is decided by the payable sum and the prevailing rates of annuity.
    • Maturity benefit/Vesting Benefit: if the policyholder survives the term of the policy, the benefit to be paid will be equal to the fund value which will be converted into annuity compulsorily under prevailing annuity rates but policyholders can choose to receive one third of the benefit amount as a lump sum.
    • Surrender Benefit: Surrender value will be applicable only after completion of 3 policy years and is equal to the value of the fund at the date of surrendering. Surrendering prior to commencement of 3 policy years, the fund value is converted into monetary terms and paid out after 3 years from date of commencement of the policy. In case of demise of the policyholder after surrender but before commencement of 3 policy years, the nominee will receive the monetary value after policy completes three years

    Investment of Funds:

    The LIC Market Plus-I offers the policyholder an option to choose from any one of the investment fund options available which are explained as below:

    Type of Fund Government Guaranteed Securities/Corporate Debt Money market Instruments Equity Risk Exposure
    Growth Fund Minimum 20% Maximum 40% Minimum 40% and maximum 80% High Risk with long term capital growth
    Balanced Fund Minimum 30% Maximum 40% Minimum 30% and maximum 70% Medium risk aimed at balanced growth
    Secured Fund Minimum 45% Maximum 40% Minimum 15% and maximum 55% Medium risk aimed at providing steady growth
    Bond Fund Minimum 60% Maximum 40% Nil Low risk exposure

    Riders: The LIC Market Plus-I offers the following riders to choose from which provides the policyholder with added protection

    • Life cover option: The LIC policy can be chosen with or without this rider. The life cover option offers the policyholder the option of choosing the cover level within the limits of the policy and if chosen will be applicable till the policy anniversary for the year the policyholder turns 75 years of age
    • Accident Benefit Option: this option can be chosen for those plans that have life cover option chosen and provides an accident benefit equal to that of life cover and has a minimum cover of Rs 25,000 with maximum cover being Rs 50 Lakh. Accidental death benefits in this rider provides an additional death benefit equal to the accidental benefit. This rider, if chosen will be valid only till the policy anniversary on which the policyholder attains the age of 70 years.
    • Critical illness Benefit Option: This option is available to those plans that have chosen life cover and provides a minimum payout of Rs 25,000 and a maximum pay out of Rs 10 Lakh provided that the policy has completed 10 years or more. The rider is valid till the policy anniversary wherein the policyholder attains the age of 60 for the maximum policy term of 35 years

    Charges: The various charges under the plan are as follows

    Type of Charge Applicability
    Premium Allocation Charge 3.3% for Single Premium policy, varies for regular premium policies based on premium amount chosen
    Top-up allocation Charge 1.25%
    Mortality Charge Charged per Rs 1000 and depends on age bracket of policyholder
    Critical Illness Rider Charge Charged per Rs 1000 and depends on age bracket of policyholder
    Accident Benefit Charge Rs 0.50 per thousand of accident sum assured per month
    Policy Administration Charge Rs 60 per month for first policy year, Rs 20 per month for remainder term of policy
    Fund Management Charge 0.5% p.a. for Bond Fund, 0.6% p.a. for secured fund, 0.7% p.a. for balanced fund and 0.8% p.a. for growth fund
    Switching Charge 4 free switches per year. Rs 100 for every Switch after
    Offer Spread Nil
    Surrender Charge Nil
    Service tax Charge Rendered on other charges at the effective rate of 12.3%
    Miscellaneous charges Charged on alterations and costs Rs 50 per alteration such as changing premium payment mode or reducing policy term
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