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  • LIC Wealth Plus Plan

    Investing in markets can be a great way to secure our future, with market investments capable of providing huge returns. LIC’s Wealth Plus is a special unit linked scheme which has been designed keeping fluctuating market conditions in mind. This LIC ULIP Plan ensures that volatile market conditions do not wreak havoc on investments made by an individual, thereby providing peace of mind and financial security to policyholders.

    Eligibility Criteria for LIC Wealth Plus

    Individuals who wish to purchase a Wealth Plus policy from LIC need to keep the following basic criteria in mind.

    Minimum entry age 10 years
    Maximum entry age 65 years
    Policy term 8 years

    Key Features of LIC Wealth Plus

    Some of the key features which distinguish LIC Wealth Plus from other schemes are mentioned below.

    Plan type Unit linked scheme
    Plan basis Individual
    Premium paying terms 3 years or single premium
    Policy term 8 years plus 2 years extended life cover
    Maturity benefits Policyholder will receive a sum equivalent to the Fund Value at the end of policy term
    Premium payment frequency Monthly, quarterly, half-yearly, yearly or single premium option
    Loan No loan facility provided under this scheme
    Free look period Policy can be returned within 15 days of purchase
    Revival Lapsed policies can be revived by paying all pending dues within 2 years of first due.
    Alterations No alterations in benefits provided
    Sum assured


    • For single premium it is 1.25 times the premium paid
    • For other modes it is 5 times the annualised premium


    • For single premium it ranges between 2.5 to 5 times the premium depending on entry age of individual
    • For other modes it is 10 times the annualised premium
    Policy coverage Death benefit, Survival benefit

    Benefits of LIC Wealth Plus

    A few of the main benefits which make LIC Wealth Plus unique are mentioned below.

    • Flexible – Individuals have flexible premium payment options, with a choice between monthly, quarterly, half-yearly or yearly payment.
    • Death benefit – In the event of unfortunate demise of policyholder during the policy term, a death benefit equivalent to the sum assured plus the fund value at death will be provided.
    • Survival/maturity benefit – On survival of a policyholder at the completion of policy term, a survival/maturity benefit will be given. This amount is equivalent to the higher of the fund value at that time, decided on the basis of highest net asset value witnessed during the policy term or the net asset value on the date of policy termination.
    • Fund investment – The premium paid by an individual is invested in a medium risk fund which offers good returns.
    • Surrender benefit – In the event of an individual wishing to surrender the policy after the 3rd year, a surrender benefit is payable (subject to certain conditions).
    • Partial withdrawals – Partial withdrawals are permitted under certain conditions, ensuring that a financial crunch doesn’t impact a policyholder.
    • Easy implementation – Buying and implementing this policy is simple and fast, with no long processing period.

    Working of LIC Wealth Plus

    One might think that LIC Wealth Plus is a complicated plan, given the investment terminology and statutory warning about the investment risk being borne by the person purchasing this policy. This, however isn’t the case, as this LIC policy can be implemented without hassles. Let us consider the example of Mr. Ghosh, a 30 year old software engineer to see how this plan works. He decides to invest a sum of Rs 40,000 in this scheme, choosing a single premium payment option. Post payment of this single premium, he is now protected under this plan for a period of 10 years in total, 8 years being the actual term of the policy and 2 years being an extended cover. The sum assured chosen by Mr. Ghosh is Rs 1 lakh.

    Now the plan invests in the wealth Fund, a medium risk fund which aims to provide returns of around 10% (depending on market conditions). Let us consider the following scenarios to see how the fund works.

    • Mr. Ghosh is diagnosed with a terminal illness and passes away 5 years into the plan. In this case, his nominee will receive a death benefit equivalent to the fund value at the time of demise. In this case, given market conditions, one can expect returns of around Rs 1.6 lakh.
    • Mr. Ghosh leads a healthy life, with the policy coming to an end. On completion of policy term, he will be entitled to the money accumulated in the fund.
    • Mr. Ghosh passes away 9 years after he purchased the plan. In this case, given the additional cover of 2 years, his nominee will receive the death benefit equivalent to the sum assured, i.e., Rs 1 lakh.

    Premium Payment for LIC Wealth Plus

    The table below highlights the multiple premium payment options available to policyholders.

    Payment modes Minimum premium Maximum premium
    Single premium Rs 40,000 NA
    Monthly payment for 3 years Rs 2,000 NA
    Annual, half-yearly or quarterly payment for 3 years RS 20,000 per annum NA


    Policyholders can choose to enhance their protection by opting for the Accident Benefit Rider. This rider ensures that apart from the original death benefit, an additional accidental death benefit is paid to the nominee in the event of death of policyholder through an accident.

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

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