ULIP Insurance How it works?

What is ULIP Insurance? How it works?

ULIP is a part linked with insurance plan. In other words ULIP is an Insurance + Investment plan. ULIPs fall in the category where they are more goal oriented and give priority towards the safety of insurance protection. This plan enables you to secure protection for your family in the event of your untimely death and at the same time provides you an opportunity to earn a return on your premium paid. In this type of investment a part of the investment is used for providing you life cover. As this insurance is combined is somewhere linked with investment, therefore the funds which are saved in turn are used in stocks or bonds, hence the value of the investment keep varying as per the investment chosen by you. In Simple words, ULIPs are structured in such a form that they can be managed according to the specific needs of the consumers and the protection received is an added benefit. In this way the ULIPs offer flexibility to their customers.

There are certain important points to be taken into consideration before we opt for ULIP plans.

  • Firstly, we should be aware about all the charges ie. allocation charges, mortality charges etc.
  • Secondly, person can get a tax rebate of a maximum of Rs 100000 when invested in ULIP plans.
  • Third point is what are the locking period and other fine prints like surrender charges before the maturity.

As now we know what exactly is an ULIP plan, now the next question normally pops out in our minds is how does this plan works out? No plan is easy to understand, so in the same way even it is critical to know the working of ULIP plan and how our money gets invested. ULIPs basically work like a mutual fund with a life cover involved in it. The premium is invested by them in the investments like mutual funds, bonds, stock markets. When the amount of the premium is decided the insurer firstly deducts some portion of the ULIP premium and then the rest of the premium is invested in the funds. The next step involves deduction of the mortality charges by the administration. The charges are deducted as per the type chosen by us. It may be on monthly basis or sometimes daily basis. As the fund invested by us in the ULIP plan as an underlying value, the fund value provides us the value of the asset. And as the plan gets matured, we are entitled to receive the amount of out fund as per its face value.

The points must be considered and the proper knowledge of the ULIP plan is a must. If all these factors are viewed, this policy is very beneficial in the future.
—–

If you want to buy LIC ULIP policy then visit : https://www.mylicindia.com/ulip-plans/

LIC Of India SMS Alert:

Receive LIC Of India Policy updates on your Mobile .  Click here: MyLICindia SMS Alert

Enter Your Email Address Here To Receive FREE Updates by Email:

LIC Wealth Plus

LIC Wealth Plus

LIC Wealth Plus (Table No.801) is an investment plan for limited time offer!

LIC Wealth Plus Summary:

LIC’s Wealth Plus (Table No.801) is a ULIP insurance plan that protects your investment from market fluctuations, so that your investments are protected in financially volatile times. Wealth Plus offers Guarantee of the highest NAV in the first 7 years of the policy, subject to a minimum of Rs.10.  Policy term is 8 years. LIC Wealth Plus

Wealth Plus Features:

1. Guaranteed Highest NAV of 7 year.

2. Very Attractive Returns.

3. Life cover.

Risk cover of 5 times of the annualized premium or 1.25 times of single premium.

4. Minimum Yearly premium Rs. 20,000 for three years term policy and there is no limit on maximum premium.

5. Tax benefits.

6. Partial withdrawals allowed:

Two Partial withdrawals are allowed in a policy year subject to certain conditions.

7. Limited Period Offer.

8. Extended life cover:

A unique feature of the Plan is the extended life cover for 2 years after the completion of policy term of 8 years.

9. Maturity Benefit:

At the end of policy term and the policy is in full force, payment of fund value will be made based on the highest NAV over the first 7 years of the policy or the NAV as applicable at the end of the policy terms whichever is higher.

LIC Wealth Plus

Death benefit:

In case of death during the policy term, the nominee shall receive Sum Assured under the basic plan together with the Policyholder’s Fund Value as death benefit. In case of death of the Life assured after the policy term, but before the expiry of extended period, the nominee shall receive the Sum Assured under the Basic Plan.

Accident Benefit:

Accident Benefit Option equal to the amount of life cover subject to minimum of Rs. 50,000 and maximum of Rs. 50 lakh is available subject to certain limits and conditions. Accident Benefit charge at the rate of Rs. 0.50 per thousand Accident Benefit Sum Assured per policy year will be levied every month.

Modes of Premium Payment for LIC Wealth Plus :

The premium can be paid either in a Single premium (One time investment) or for 3 years regularly at yearly, half-yearly, quarterly or monthly (through ECS).

Minimum Premium:

Minimum Premium for 3 years Premium Paying policies is Rs.20,000 p.a. whereas for Single premium policies it is Rs.40,000 For Monthly (ECS) mode the minimum premium is Rs.2,000 p.m.

Eligibility for LIC’s Wealth Plus:

Minimum Age at entry is 10 years (age last birthday)

Maximum Age at entry is 65 years (age nearer birthday).

Premium Top ups:

Premium Top ups are not allowed.

Surrender Value:

LIC Wealth Plus can be surrendered only during the policy term. The surrender value, if any, is payable only after the completion of the third policy anniversary both under Single and 3 years Premium Paying Term contract. The surrender value will be the Policyholder’s Fund Value at the date of surrender. There will be no Surrender charge. The policy can not be surrendered during the extended life cover period.

Download LIC Wealth Plus details in pdf format. For Wealth Plus Comparison table –> Click Here

Example: If Mr. LIC buy Wealth Plus today at Rs.10 NAV ( You will get Approx. 4700 Units for one time investment of Rs.50000 *Calculated on Rs.10 NAV) and market goes upto Rs.50 per NAV in 5 years and then again market collapse and comes down to Rs.20 In this case the highest NAV is Rs.50 and hence your maturity amount will be 4700×50=Rs.2,35,000/- (No. of units x Highest NAV)

Last Date: 9th May 2010
(Plan Discontinued)

 

Note:

The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

LIC Health Plus

LIC Health Plus

LIC Health Plus Table No. 901

LIC Health Plus is a Long Term Unit Linked Health Insurance Plan for You and Your Family.

health-plus

LIC Health Plus Summary:

Health is a major concern on everybody’s mind these days. With sky rocketing medical expenses, the possibility of any illness leading to hospitalization or surgery is a constant source of anxiety unless the family has actively provided for funds to meet such an eventuality. Most families rarely provide for healthcare, and even if they do, it is grossly inadequate.

LIC Health Plus is a unique long term health insurance plan that combines health insurance covers for the entire family (husband, wife and the children) – Hospital Cash Benefit (HCB) and
Major Surgical Benefit (MSB) along with a ULIP component (investment in the form of Units) that is specifically designed to meet domiciliary treatment (DTB) related expenses for the insured members.

Benefits:

1. Hospital Cash Benefit (HCB):

A daily benefit is payable in case the insured is hospitalized due to either accidental body injury or sickness. The quantum of benefit depends upon the level of the cover opted. Minimum Initial Daily Benefit (IDB)*# is Rs.250 and Maximum is Rs.2500 And for Spouse/Child the Minimum is Rs.250 and Maximum is Rs.1500.

Note: * The Applicable daily Benefit. The IDB is applicable during the first year of then cover. The daily benefit will increase @5% p.a. simple of the IDB on each policy anniversary until it hits a cap of 1.5 times the initial benefit. The IDB of the spouse cannot exceed the Principal Insured’s IDB; The IDB of the children cannot exceed the spouse’s IDB.

#Initial daily benefit that is payable in respect of stay in non-ICU room or ward. In case the insured is required to stay in the ICU of a hospital, an enhanced rate of daily benefit is payable, which is twice the eligible daily cash benefit.

2. Major Surgical Benefit (MSB):

In the event of the insured undergoing one of the major surgeries defined by Life Insurance Corporation Of  India, a lump sum benefit (regardless of the actual costs incurred) equivalent to the percentage of the sum assured mentioned against that surgery will be payable on providing proper proof of surgery to the satisfaction of the corporation.

3. Domiciliary Treatment Benefit (DTB):

The Principal Insured can withdraw an amount equivalent to the actual expense he or she has incurred in respect of any domiciliary treatment or to meet the medical expenses incurred over and above the hospital cash/major surgical benefits in respect of either oneself or others insured under the policy.

4. Your Money Grows in Units: (Investment)

The premiums allocated to purchase units will be strictly invested in a Health Plus Fund (Income and Growth – Low Risk).

5. Income Tax Benefit:

Income Tax rebate is available under U/S 80D.

Payment of Premiums:

Regular premium can be paid either in yearly, half yearly  or monthly (ECS) installments.

Eligibility Conditions and Restrictions for LIC Health Plus:

Minimum Policy Entry – Last Birthday:  Principal and Spouse 18 years, Child 3 months.
Maximum Age – HCB Cover – Last Birthday: Principal and Spouse 18 years, Child 3 months.
Minimum Age – MSB Cover – Last Birthday: 18 years for Principal, Spouse and Child.
Maximum Entry – Nearer Birthday: Principal and Spouse 55 years, Child 17 years.

Minimum Annual Premium Conditions:

Single Life: 6 times the HCB of the Principal Insured OR Rs.5000 p.a.
Two Lives: The arithmetic sum of 6 times the HCB of PI and 3 times the HCB of the second insured. OR Rs.7500 p.a.
More than two Lives: The arithmetic sum of 6 times the HCB of PI and 3 times the HCB of each of the others insured OR Rs.10,000 p.a.

Note:
The above is the product summary giving the key features of the Health Insurance plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.


Update: LIC Health Plus Table No.901 Has Been Discontinued


 

LIC’s Jeevan Saathi Plus (ULIP Plan)

LIC’s Jeevan Saathi Plus (ULIP Plan)

Jeevan Saathi Plus Summary: (Table No.197)

LIC Jeevan Saathi Plus plan no. 197 is a unit linked plan (ULIP) wherein a couple can take the insurance cover on their lives under a single policy. The proposer under the plan shall be called Principal Life Assured (P.L.A.) and the other life (wife/husband) shall be called Spouse Life Assured (S.L.A.). The premiums can be paid either in lump sum (single premium) or regularly throughout policy term. The P.L.A. can choose the level of cover (Sum Assured) for both lives within the limits, which will depend on whether the policy is a Single premium or Regular premium contract, age and the amount of premium agreed to pay. For regular premium policies, in case of death of the P.L.A. during the term of the policy, the plan also provides for waiver of all future premiums including outstanding premiums, if any, provided life cover is in force.

lic Jeevan Saathi Plus

Features:

Switching of funds:
The policyholder (SLA) can switch between any fund types during the policy term. On switching the entire amount is switched to the Fund opted for. Within a given policy year, 4 switches will be allowed free of charge. Subsequent switches shall be subject to a switching charge of Rs.100 per switch.

Partial Withdrawals:
P.L.A. may encash the units partially after the third policy anniversary subject to certain conditions.

Top Up Premium: (Additional Premium)
P.L.A. can pay Top-up premium in multiples of Rs.1,000/- at anytime during the term of the policy without increasing the sum assured.

Payment of Premiums:
P.L.A. may pay premiums regularly at yearly, half-yearly, quarterly or monthly (ECS) intervals over the term of the policy. The minimum annualised premium (other than monthly through ECS) will be Rs.10,000/- increasing thereafter in multiples of Rs.1,000/-. The minimum monthly (ECS) premium will be Rs. 1000/- increasing thereafter in multiples of Rs. 250/-.

Single Premium:
Single premium can be paid subject to a minimum of Rs. 40,000/-.

Investment Options:
The plan offers a choice of four investment options: Bond Fund, Secured Fund, Balanced Fund, and Growth Fund; each tailored to different levels of risk and return. The Policyholder will have the option to choose any ONE of the above 4 Funds.

Discontinuance of premiums:
If premiums are payable either yearly, half-yearly, quarterly or monthly (ECS) and the same have not been duly paid within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium.

Jeevan Saathi Plus 197

BENEFITS:

A) Death Benefit:
On death of P.L.A. while S.L.A. is alive Sum Assured as applicable to P.L.A. shall be payable to the S.L.A.
Also, in case of regular premium policy, when the cover is in full force, payment of all future premiums due under the policy shall be waived. Units equivalent to an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy less total premiums paid under the policy) shall be credited to the policyholder’s fund. The units shall be allocated at the unit price applicable for the fund type opted for under the policy. The policy shall continue.

On death of P.L.A. after the death of S.L.A.
Sum Assured as applicable to P.L.A. plus policyholder’s fund value together with an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy less total premiums paid under the policy) shall be payable and the policy shall terminate.

On death of S.L.A. while P.L.A. is alive
Sum Assured as applicable to S.L.A. shall be payable to P.L.A.

On death of S.L.A. after the death of P.L.A.
Sum Assured as applicable to S.L.A. plus policyholder’s fund value shall be payable and the policy shall terminate.

On Simultaneous death of P.L.A. and S.L.A.
Sum Assureds as applicable to both P.L.A. and S.L.A. plus policyholder’s fund value together with an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy less total premiums paid under the policy) shall be payable and the policy shall terminate.

B) Maturity Benefit:
On both P.L.A and/or S.L.A. surviving the date of maturity an amount equal to the Policyholder’s Fund Value is payable.

Eligibility Conditions and Restrictions for Jeevan Saathi Plus:

(a) Minimum Age at entry: 18 years (completed)
(b) Maximum Age at entry: 55 years (age nearer birthday)
(c) Maximum Maturity Age: 70 years (age nearer birthday)
(d) Policy Term: 10 to 20 years
(e) Minimum Sum Assured:
Regular Premium: 5 times the annualized premium for each of P.L.A and S.L.A.
Single Premium: 1.25 times the single premium for each of P.L.A and S.L.A.
(f) Maximum Sum assured:
Inclusive of both Principal Life Assured and Spouse Life assured, subject to the minimum sum assured condition as e) above.
Regular Premium:
30 times the annualized premium if age at entry for both the lives is upto 40 years
20 times the annualized premium if age at entry for any one of the lives is 41 years and above
Single Premium:
5 times the single premium if age at entry for both the lives is upto 40 years
2.5 times the single premium if age at entry for any one of the lives is 41 years and above
Further the sum assured for the spouse shall be less than or equal to the Principal Assured subject to the minimum sum assured condition.

Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to LIC of India within 15 days.

There are at least three distinct advantages with Joint Life plan like this. 1.) It Cost less 2.) It helps in estate planning, particularly for a couple who also happen to be a owner of a family run business and 3.) It can be used to set off mortgage loans without causing any major discomfort to the surviving partner.

In short, LIC Of India’s new policy, Jeevan Saathi Plus is a good plan for couples especially for working or professionals, offering financial security for both the lives.

The Unique Identification Number (UIN) for LICs Jeevan Saathi Plus plan is 512L255V01.

How to Apply for Jeevan Saathi Plus policy?


Update: Jeevan Saathi Plus Table No. 197 Has Been Discontinued.


Note:
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

Money Plus 1

Money Plus 1

Money Plus 1 Summary:
LIC Money Plus 1 plan no. 193 is a unit linked (ULIP) Endowment plan with regular premium paying term which offers investment cum insurance during the term of the policy. You can choose the level of cover within the limits, which will depend on the level of premium you agree to pay. Four types of investment Funds are offered in Money Plus 1. The Policyholder has the option to choose any ONE out of the following 4 funds.  Bond, Secured, Balanced and Growth.

LIC Money Plus 1

Features:

Payment of Premiums:
You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (ECS) intervals over the term of the policy. The minimum annual premium will be Rs.5,000/- increasing thereafter in multiples of Rs.1,000/-. The minimum monthly (ECS) premium will be Rs. 1000/- increasing thereafter in multiples of Rs. 250/-.

Partial Withdrawals:
You may encash the units partially after the third policy anniversary subject to the following conditions.

1. In case of minors, partial withdrawals shall be allowed from the policy anniversary coinciding with or next following the date on which the life assured attains majority (i.e. on or after 18th birthday).
2. Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units.
3. For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic plan shall be reduced to the extent of the amount of partial withdrawals made.
4. Under Regular Premium policies where less than 3 years’ premiums have been paid and further premiums are not paid, the partial withdrawals shall not be allowed.
5. Under Regular Premium policies where at least 3 years’ premiums have been paid, partial withdrawal will be allowed subject to a minimum balance of two annualized premiums in the Policyholder’s Fund Value.

Switching of funds:
You are allowed to switch from one fund to another i.e. Bond funds to Growth fund. 4 switches will be allowed free of charge, subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch.

Discontinuance of premiums and lapse policy:
If premiums are payable either yearly, half-yearly, quarterly or monthly (ECS) and the same have not been duly paid within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium.

Eligibility Conditions And Restrictions for Money Plus-1:
1. Minimum Age at entry: 0 (age last birthday)
2. Maximum Age at entry: 65 years (age nearer birthday)
3. Minimum Maturity Age: 18 years (completed)
4. Maximum Maturity Age: 75 years (age nearer birthday)
5. Minimum Policy Term: 5 years
6. Maximum Policy Term: 30 years
7. Minimum Premium: Rs.5,000 p.a.
8. Sum Assured under the Basic Plan:
a) Minimum Sum Assured :
5 times the annualized premium
b) Maximum Sum Assured :
i) 30 times of the annualized premium if age at entry is upto 45 years
ii) 20 times of the annualized premium if age at entry is 46 to 60 years
iii) 10 times of the annualized premium if age at entry is 61 years and above

Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to LIC of India within 15 days.

Note:
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.


Update: Money Plus 1 has been discontinued. Please check other ULIP Plans.


 

Fortune Plus – ULIP Plan

Fortune Plus – ULIP Plan

Summary:
LIC Fortune Plus plan no. 187 is a Unit Linked Plan (ULIP) where premium payment term (PPT) is 5 years and the premium payable in the first year will be 50% of total premium payable under the policy. Fortune Plus serves the purpose of insurance-cum-investment. Four types of investment Funds are offered in Fortune Plus. The Policyholder has the option to choose any ONE out of the following 4 funds.  Bond, Secured, Balanced and Growth.

Fortune Plus Features:

Payment of Premiums:
You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (ECS) intervals for 5 years. The minimum First year premium will be Rs.20,000/- and you may pay any amount exceeding it. From second year onwards each year’s premium will be 25% of the first year premium.

lic fortune plus

Partial Withdrawals:
You may encash the units partially after the third policy anniversary subject to certain conditions.

Switching of funds:
You can switch between any fund types for the entire Fund Value during the policy term subject to switching charges, if any.

Discontinuance of premiums:
If premiums are payable either yearly, half-yearly, quarterly or monthly (ECS) and the same have not been duly paid within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium.

Settlement Option:
When the policy comes for maturity, you may exercise “Settlement Option” and may receive the policy money in installments spread over a period of not more than five years from the date of maturity. There shall not be any life cover during this period. The value of installment payable on the date specified shall be subject to investment risk i.e. the NAV may go up or down depending upon the performance of the fund.

Looking for Child Fortune Plus Plan? Click here:

Eligibility Conditions and Restrictions for Fortune Plus:

1. Minimum Age at entry: 12 years (age last birthday)
2. Maximum Age at entry: 60 years (age nearer birthday)
3. Minimum Maturity Age: 18 years (completed)
4. Maximum Maturity Age: 65 years (age nearer birthday)
5. Minimum Policy Term: 5 years
6. Maximum Policy Term: 20 years
7. Minimum Premium: Rs.20,000/- for first Premium
8. Sum Assured under the Basic Plan: Higher of 5 times the first year’s annualized premium or half of the policy term times the first year’s annualized premium.

Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to LIC within 15 days.

How to Apply for LIC Fortune Plus policy?


Update: LIC Fortune Plus Table No.187 Has Been Discontinued.


Note:
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.