The Life Insurance Corporation of India (LIC) recently launched a new policy that combines insurance coverage with investment opportunities. The policy, named LIC Index Plus Policy, offers double benefits and is available to anyone under 60. By taking this policy, you can receive up to 10 times insurance coverage and the possibility of wealth growth.
If you are under 50 years old and choose this policy, you can get 7 to 10 times the insurance coverage for your annual premium. For those aged 51 to 60 years, the insurance protection is up to 7 times. The policy has a minimum term of 10 to 15 years, depending on the premium payment, and must be continued for 25 years. The annual minimum premium is Rs. 30,000, and you can choose to pay it monthly, quarterly, or half-yearly, with a minimum monthly premium of Rs. 2,500.
The life coverage lasts for the term, and mortality charges are refunded. If the policyholder survives until maturity, taxes levied on mortality charges are waived off. The policy also provides an opportunity for investment. You can choose to invest in either Flexi Growth Fund or Flexi Smart Growth Fund, which invests in selected shares of the NSE 50 Index. After holding the investment for five years, you can partially withdraw it according to the rules. If the policyholder is alive at maturity, cash payments equal to the value of the unit funds will be made.
Guaranteed additions are paid only when there is insurance coverage and are a percentage of the premium as the policy premium expires, with the coverage continuing. These funds go to unit funds, allowing for the possibility of forming a large corpus. However, it’s essential to remember that your returns will depend on the performance of the funds you choose. It’s better to buy this policy after knowing all the details.
