LIC Profit Plus Plan

The LIC Profit Plus plan is a unit linked endowment plan under which the policyholder has the option to make a single payment in the form of a lump sum towards his or her premium or choose to make premium payments in a uniform manner over a period of 3 years, 4 years or 5 years. As per the policy terms, the individual can decide the amount of cover based on factors such as the policy term that has been chosen, the amount of premium that the individual has agreed to pay and whether the plan is a Single Premium contract or a Limited Premium contract. However, the policyholder is liable to bear any investment related risks incurred on his or her investment portfolio.

Eligibility Criteria For LIC Profit Plus

Individuals looking to avail of the LIC Profit Plus plan are required to fulfil the following eligibility criteria:

Key Features Of LIC Profit Plus

The following are some of the main features of the LIC Profit Plus plan:

Benefits/Advantages of LIC Profit Plus

LIC Profit Plus offers policyholders the following key benefits and advantages:

• Death Benefit - The policyholder can avail of death benefits equal to his or her fund value or the Sum Assured, whichever is higher
• Maturity Benefit - The policyholder will receive a sum equal to his or her fund value, should he or she survive up to the date of maturity of the contract
• Options - Policyholders can avail of additional options such as the Accident Benefit Option and the Critical Illness Benefit Rider along with their policy
• Funds - Policyholders can choose from one of the following funds:
  • Bond Fund - Low risk
  • Secured Fund - Low to medium risk with steady income
  • Balanced Fund - Medium risk with balanced income and growth
  • Growth Fund - High risk with capital gain over a long period

How the LIC Profit Plus Plan Works

An individual who purchases the LIC Profit Plus Plan can either choose to make premium payments either as a single lump sum payment at the commencement of the policy or via monthly, quarterly, half-yearly or yearly installments for 3, 4, or 5 year policy paying terms. Once the policy expires or matures, the individual will receive the Sum Assured along with any other additions, which may be guaranteed or variable, depending on a number of factors. Premiums paid by the individual will be used to buy units in the investment fund of his or her choosing.

Premium Payment

This LIC ULIP plan allows policyholders to choose between making a single premium payment or premium payments over time, as per their convenience. The premium amounts that are required to be paid under both categories are as follows:

Riders

The LIC Profit Plus plan comes with two additional riders which can be added onto the existing policy:

• Accident Benefit Option
  • Policyholders above the age of 18 are eligible to avail of this rider
  • Accident Benefit of a minimum of Rs 25,000 and maximum of Rs 50 lakh can be opted for
  • In the event of death due to accident, the Accident Benefit sum assured along with an additional amount equal to this sum assured will be payable
• Critical Illness Benefit Rider
  • Policyholders above the age of 18 and below the age of 50 are eligible to avail of this rider
  • Critical Illness Benefit of a minimum of Rs 50,000 and maximum of Rs 50 lakh can be opted for
  • In the event of diagnosis critical illness as defined by the policy, an additional amount shall be payable to the policyholder, which is equal to the Critical Illness Benefit

GST of 18% is applicable on life insurance effective from the 1st of July, 2017