LIC’s SIIP ULIP Plan – Table No. 852

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.

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