Know Everything About LIC Nivesh Plus Plan

LIC Nivesh Plus is a unit-linked single premium policy that allows you to grow your money while also providing life insurance. LIC is a major player in traditional life insurance, but it has remained mostly absent from the unit-linked product market. The total return on your investment is determined by the performance of the funds in which you placed your money. This plan allows you to choose the type of Sum assured at the outset, as well as invest the premium in one of four investment funds. A single premium can buy units in the Fund category selected after deducting the Premium Allocation Fee. The Unit Fund is subject to a number of payments, and the value of the units rises with time.

Know Everything About LIC Nivesh Plus Plan

Here is everything you must know about LIC Nivesh Plus Plan:

1. Death Benefit

The nominee will get the death benefits if the covered person passes away. An amount equal to the unit fund value will be paid in the event of death prior to the start of the risk. If a person dies after the risk begins, the amount payable is higher than the basic sum assured or the unit fund value.

The advantages of maturation
A sum equal to the unit fund value will be payable if the life guaranteed survives the maturity date.

2. Basic Sum Assured

You have the option to choose the sort of sum assured at the outset with this plan. The option cannot be changed once it has been selected. The choices are as follows:

Option 1: 1.25 times the cost of a single insurance policy

Option 2: ten times the price of a single premium

3. Partial Withdrawals

After the policy has been in place for five years, you can make partial withdrawals. It can be a fixed quantity or a fixed number of units. Partially withdrawing up to 30% of the fund's value is possible. When a minor reaches the age of 18, he or she can make a partial withdrawal. The maximum charge for each partial withdrawal is Rs 500.

4. Switches

During the set insurance term, the assured has the option to move between four different funds. During the policy's term, you can choose from four different fund kinds. If the assured chooses to switch, the new fund will take over the whole fund value. Switching costs must be paid. The maximum charge per switch is Rs 500.

5. Guaranteed Additions

At the end of the policy years mentioned in the table below, Guaranteed Additions as a percentage of Single Premium will be added to the Unit Fund: 6-3% Guaranteed Additions at the End of the Policy Year 10 to 4% Guaranteed Additions at the End of the Policy Year 15 to 5% Guaranteed Additions at the End of the Policy Year 20-6% Guaranteed Additions at the End of the Policy Year 25-7% Guaranteed Additions at the End of the Policy Year The assigned Guaranteed Addition will be converted to units and attributed to the Unit Fund based on the underlying Fund's NAV as of the date of the addition.

6. Premium Allocation Charge 

From the total premium paid, this is the portion of the premium that is assigned to charges. The charges for allocation are as follows: 

Offline sales: 3.30 percent; internet sales: 1.50 percent

7. Mortality Charge 

The Mortality Charge is the cost of age-specific life insurance coverage that is deducted from the Unit Fund Value at the beginning of each policy month. Mortality Charges on a monthly basis would be a twelfth of those on an annual basis.

Conclusion

The LIC Nivesh Plus plan is a single premium policy. As a result, you will be required to make a single payment that will be invested in the funds of your choice. The policy's duration can then be set between 10 and 25 years. When it comes to the amount of coverage you desire, you have two alternatives. The quantity of coverage you purchase influences whether you are eligible for tax savings from this package so choose wisely. The money you pay is put into the funds of your choice, which are divided into four categories. Based on your investment amount and fund selection, you will be allotted units in these funds. Both an online and offline version of this strategy is available.

Also read- Aspects To Consider While Purchasing A Life Insurance Policy

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.