LIC SIIP Plan Life Insurance Benefits

The LIC SIIP Plan has several advantages to offer, some of which are enlisted below:

• Death Benefit: Death benefit means the advantage that is given to the beneficiaries of the policyholder in case the life assured faces an unfortunate death. The amount that is paid in the event of the death of the policyholder is equivalent to the unit fund value. Please note that the amount paid out as a death benefit can be taken by the policyholder either in a lump-sum manner or in installments.
• Maturity Benefit: The maturity benefit is paid out to only those policyholders who survive the policy tenure. This amount is only paid out if the policyholder has paid out the complete premium. On the maturity of the policy, policyholders get a refund of mortality charges as well as unit fund value.
• Tax Benefits: One of the primary reasons why many policyholders prefer buying the LIC SIIP Plan is to enjoy tax benefits. With SIIP Plan, tax benefits as specified under section 80 C and 80 D of the Income Tax Act is provided.
• Guaranteed Returns: As soon as the LIC SIIP Policy turns 6 years, 10 years, 15 years, 20 years, or 25 years old, then there are guaranteed additions of 5%, 10%, 15%, 20%, and 25% respectively. To enjoy this benefit, policyholders must ensure to pay the premium amount on time.
• Rider Benefit: The benefits of the LIC SIIP Plan can be further enhanced by including a number of riders in the plan. Based on the requirements, policyholders can include the desired add-on.
• Grace Period Benefit: A grace period of 30 days is given to the policyholder in case they miss out to pay the premium on time. However, policyholders must ensure to pay the premium amount during the grace period so that the policy does not lapse.
• Partial Withdrawal Benefit: The LIC SIIP Plan also allows policyholders the benefit of partial withdrawals. However, this benefit can only be enjoyed once the policy turns 5 years old. There is a limit to partial withdrawals, depending on the tenure of the LIC SIIP Policy.