LIC unveils unit linked policy Index Plus 

LIC introduces LIC Index Plus, a unit linked life cover policy with savings and investment options.

The Life Insurance Corporation of India (LIC) has introduced LIC Index Plus, a unit linked, regular premium, individual life cover policy.

The product, available for purchase from February 6, offers life insurance and savings through the plan term. Guaranteed additions as a percentage of annualised premium will be added to the unit fund on completion of specific duration of policy years under an in-force policy and utilised to purchase units, LIC said following launch of the new plan on Monday by chairperson Siddhartha Mohanty.

Policyholders will have the option to choose between Flexi Growth Fund and Flexi Smart Growth Fund in terms of investing the premium initially and at the time of switching. The investment, of the funds, will be primarily in selected stocks that form part of NSE NIFTY 100 index or NSE NIFTY50 index respectively, the State-owned insurer said.

The minimum policy term is 10 or 15 years depending on annualised premium and maximum term is 25 years. Premium paying term is same as the policy term. The minimum age at entry has been set at 90 days and maximum, at entry, is 50 or 60 years depending on the basic sum assured. Minimum Age at maturity is 18 years and maximum age at maturity is 75 or 85 years depending on the basic Sum Assured.

Option to partially withdraw the units any time after the lock-in period of 5 years is available, subject to conditions. On the policyholder surviving the date of maturity, a sum equal to unit fund value will be paid. The amount payable on death would range depending on whether the death is before the date of commencement of risk or after the date of commencement of risk, LIC said.