05 Jan, 2013 10:26p.m.
The financial year is coming to end and you will need to submit the investment records for the tax exemptions. The Life Insurance Corporation is making moves to capture the investments. They are out with two news plans - one is the Flexi Plus Plan and the other being a pension plan called New Jeevan Nidhi.
LIC’s Flexi Plus is a unit linked assurance plan, which not only provides a lump sum benefit on death but also the maturity benefit irrespective of the survival of the Policyholder. This plan is specially designed for you to provide a very good combination of protection and long term savings and also provides you greater flexibility to build a better life and realise your dreams.
The plan offers two funds options to choose from.
- Type 1: Debt Fund, which has 100 percent debt exposure with no equity exposure and comes with a low risk.
- Type 2: Mixed Fund, equity will be 15-25 percent, and the rest in debt. You get to choose between the two fund types.
You can make monthly, quarterly, half yearly and yearly payments within the minimum and maximum premium limits set by the insurer for each payment interval. Keep in mind that, Sum Assured under the plan is 10 times the annualised premiums or 105 percent of the total premiums paid, whichever is higher, this includes any premiums which were due, but not paid.
The charges are 7.50 percent for the first year, 5 percent from the second to fifth years, and 3 percent thereafter. Mortality charges, or simply put, the cost of life cover, will be in the range of Rs 1.36 to Rs 6.29 per annum, and will be charged as per the age of the policyholder. Then there are also policy administrations charges, discontinuance charges (in case of discontinuance) as well. Fund Management charges are 0.50 percent per annum of Unit Fund of Debt Fund and 0.60 percent per annum of Unit Fund of Mixed Fund.
Death benefit during the policy term is as follows; a lumpsum will be paid immediately which is equal to Sum Assured to the nominee or legal heir. After the date of death, an amount which is equal to sum of all future premiums payable will be credited to the policyholder funds. And on maturity date, total fund value will be given to the nominee, legal heir.
“As far as maturity benefit goes, on surviving the date of maturity, an amount equal to Policyholder’s Fund Value shall be payable.” To know details about benefits and features seehere.
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