Today in this article we will discuss the LIC’s SIIP ULIP Plan which was launched by LIC (Life Insurance Corporation) of India on 2nd March 2020. This is a ULIP Plan. If you don’t know what is ULIP Plan then I have written a detailed article on what is ULIP Plan? Please read that one for a better understanding.

ULIP plan is the combination of life insurance + insurance plan. The amount which you are paying as premium under this plan will be invested in the stock market.

The amount will be invested in 3 types of funds.

  • Debt funds (Low-risk low return)
  • Equity funds (High-risk high return)
  • Hybrid funds (Moderate risk moderate return)

It basically works like a mutual fund’s SIPs. In ULIP Plan, the benefit you will get is the insurance coverage. The premium you are paying will be divided in two-part. One will go in life insurance coverage and another will go in stock market investment.

LIC’s SIIP ULIP Plan – Eligibility

Let’s check who all can buy this policy and what are the criteria for purchasing this policy.

  • Minimum age at entry: 90 days
  • Maximum age at entry: 65 years
  • Minimum policy term: 10 years
  • Maximum policy term: 25 years
  • Minimum maturity age: 18 years
  • Maximum maturity age: 85 years

There are four options for premium payment, they are as below.

  • Monthly Premium: ₹ 4000
  • Quarterly Premium: ₹ 12000
  • Half-yearly Premium: ₹ 22000
  • Yearly Premium: ₹ 40000

There is no limit for the maximum premium amount under this policy.

Commencement of Risk:

If you are buying this policy for a child, then you need to understand that when the risk coverage will start for the child.

If the age of the child while taking the policy is 8 years and above: The risk cover will start immediately

If the age of the child is below 8 years while taking the policy then: risk cover will start

  • After completion of 8 years
  • After 2 years of the policy tenure.

Whichever is earlier from the above.

Death Benefit:

On death before the date of commencement of risk then, an amount equal to the unit fund value shall be payable.

After commencement of risk: Then the highest of the below will be payable.

  • Basic sum assured
  • Policy holder’s unit fund value
  • 105% of the total premium paid

Basic Sum Assured (BSA)

  • Age at entry less than 55 years then 10 times of the annual premium amount.
  • Age at entry is more than or equal to 55 years then 7 times of annual premium amount.

LIC’s SIIP ULIP Plan – Riders

  • The accidental death benefit is available as an extra rider.
  • This benefit is available only during the premium payment term of the base plan.
  • The maximum sum assured under accidental benefit is the sum assured of the basic plan and is subject to the maximum of Rs. 1 crore.

Investment Options – LIC’s SIIP ULIP Plan

There are 4 types of investment options available under this scheme.

1) Bond Fund

Investment in Govt Securities / Corporate Debt – 60% to 100%

Short Term investments incl money market instruments – 0% to 40%.

The risk profile is Low Risk.

2) Secured Fund

Investment in Govt Securities / Corporate Debt – 45% to 85%.

Short Term investments incl money market instruments – 0% to 40%.

Investment in Equity – 15% to 55%.

The risk profile is Lower to Medium Risk.

3) Balanced Fund

Investment in Govt Securities / Corporate Debt – 30% to 70%

Short Term investments incl money market instruments – 0% to 40%.

Investment in Equity – 30% to 70%

The risk profile is Medium Risk.

4) Growth Fund

Investment in Govt Securities / Corporate Debt – 20% to 60%

Short Term investments incl money market instruments – 0% to 40%.

Investment in Equity – 40% to 80%

The risk profile is High Risk.

LEAVE A REPLY

Please enter your comment!
Please enter your name here