LIC has always been the most trusted life insurance company in India and has won millions of hearts. LIC has always attempted to make the lives of their clients happier and secure and thus they keep on launching new products for the benefit of all.
LIC Nivesh Plus Plan was launched by the corporation on the 2nd of March, 2020 and it is a unit-linked individual life insurance policy. Nivesh Plus LIC comes with dual benefits of investment along with Insurance which means the company invests a part of your premium into the capital market to generate wealth. LIC Nivesh Plus offers numerous benefits and flexible options to the policyholders at affordable rates.
Benefits of the LIC Nivesh Plus Plan
- Death Benefit offered under the LIC Nivesh Plus plan:
- If the life assures passes away before the date of commencement of risk :
The corporation shall pay an amount equal to the Unit Fund Value.
- If the life assured passes away after the date of commencement of risk:
The corporation will analyze both the sum assured value and unit fund value and then pay the higher among them to the nominee of the plan. The mortality charge, tax charges, and accident benefit charges are paid along with the death benefits.Note: The death benefit can be claimed either in a lump sum amount or in installments. The policyholder can decide this at the time of policy purchase.
- If the life assures passes away before the date of commencement of risk :
- Maturity BenefitWhen the policyholder survives till the maturity period of the Nivesh Plus LIC, the insured is paid an amount equal to the Unit Fund Value which is referred to as maturity benefit.
Optional benefits offered by LIC Nivesh Plus Plan
- Optional Rider benefits:Jeevan Nivesh Plan LIC offers an additional rider option called the LIC’s Linked Accidental Death Benefit. This rider benefit can be opted at any time of the commencement of the plan or on the policy anniversary. The benefits under this additional rider option shall be available till the maturity of the plan or till the policy anniversary. In case of the insured person’s accidental death, the Accident Benefit Sum Assured shall be paid in a lump sum amount along with the death benefit.
- Partial withdrawal facility:LIC’s Nivesh Plus Plan allows for a partial withdrawal facility. However, the units can only be withdrawn after an outstanding tenure of 5 years of the policy. The withdrawals shall be in the form of a fixed amount or fixed units. For minors, a partial withdrawal facility is available only after 18 years of age.
- Switching:Jeevan Nivesh Plan LIC offers a facility to switch among the four kinds of funds to its policyholders during the policy tenure. These switches from one fund to another are completely tax-free.Note: However, the policyholders shall be fully aware of the switching charges and other details mentioned in the policy brochure before doing so.
- Settlement option for death benefit:Under the Nivesh Plus LIC, the policyholders get a chance to claim their death benefit either in a lump sum amount or in installments. Later, if the life assured passes away his nominee is paid in the same manner.
Key features of the LIC Nivesh Plus Plan
Here are the key feature offered by LIC’s Nivesh Plus Plan:
- Basic sum assured options:The policy offers two options for the policy aspirants to choose as their basic sum assured amount at the time of the commencement of the policy.
- Four investment funds to choose from:A part of the insured person’s premium would be invested by the company in unit funds for which the client will be given four options to choose the most suitable one. These funds include bond funds, balanced funds, growth funds, and secured funds.
- Switching facility:If a person somehow wants to switch his fund unit in the middle of his policy term, Jeevan Nivesh Plan LIC allows him to do so. However, this feature comes with some terms that should be read carefully.
- Death benefit:LIC Nivesh Plus Plan offers death benefits to the nominee in case the life assured loses his life during the policy term. The policy also offers settlement options to claim death benefits in the form of installments for the nominee’s ease.
- Maturity benefit:Under the LIC Nivesh Plus policy, the insured is payable of maturity benefits if he survives the policy duration.
- Guaranteed additions:The policy rewards guaranteed addition as a percentage of single premiums when a specific duration of the policy is completed. The guaranteed additions shall be decided upon on the type of fund chosen and will be credited to the unit funds based on the NAV.
- Partial withdrawal facility:Under Jeevan Nivesh Plan LIC the life assured can partially withdraw his units after the policy has completed 5 years.
- Freelook period:The policy offers a 15 day free look period to the ones who have bought the policy offline and a 30 day free look period to the people who have bought Nivesh Plus LIC online. Under this period the insured can return the policy to the corporation if he/she is not satisfied with the terms of the plan.
- Ease of purchase:The policy can be purchased through a LIC agent via offline mode. However, the LIC Nivesh Plus plan is also available on the official website for an easy buy. Before you make up your mind, visit Turtlemint. Turtlemint will also help you compare different policies and choose the best one as per your requirements.
Riders available under LIC Nivesh Plus Plan
LIC’s Linked Accidental Death Benefit rider is available to opt under this plan. The life assured gets an extra lump sum amount paid along with the death benefit if he passes away in an accident.
Charges applicable under LIC Nivesh Plus Plan
Jeevan Nivesh Plan LIC is a ULIP plan and this is the reason why the policyholders need to pay several charges:
- Premium allocation charge:The corporation collects premium allocation charges at the inception which are later adjusted with the single premium paid. The premium allocation charges the policyholders need to pay are:
- Offline sale: 3.30%
- Online sale: 1.50%
- Mortality charge:Under the LIC Nivesh Plus Plan, the policyholders will have to pay a mortality charge at the beginning of each policy month which will depend on the sum at risk. This charge is age-specific and thus the amount can vary.
- Accident Benefit charges: If the policyholder has opted for LIC’s Linked Accidental Death Benefit Rider along with the base plan he will have to pay charges as the cost of accident benefits cover. This charge shall be collected at the beginning of each policy month by cancelling required units from the Unit Fund.
- Other charges
- Fund management charges:As the name suggests this charge is collected by the corporation to run your funds concerning the LIC Nivesh Plus Plan which will be based on the Net Asset Value.
- Switching charge:The company shall charge switching charges if the policyholder wishes to exchange his money to different funds available with the company. The company allows 4 switches in one policy year wherein the insured is charged INR 100 per switch.
- Partial withdraw charge:At the time of partial withdrawal, a cost of INR 100 shall be charged.
- Discontinuance charge:
By cancelling the units available.
Working of LIC Nivesh Plus Plan
The following example will help us in understanding how this plan works.
Karan Malhotra is a 30-year-old man, who has recently got married. His parents stay with him in Bhopal, where he works as a bank manager. Karan wants to invest in the LIC Nivesh Plus policy. This being an individual single-premium policy, he pays INR 2 lakhs. The policy term he opts for is 10 years.
Let us take a look at the different scenarios.
- Basic Premium: INR 2,00,000
- He has the option to choose between:
- Bond Fund
- Secured Fund
- Balanced Fund
- Growth Fund
- The sum assured option considered is 1.25 times the single premium, so as per the selected option, the sum assured is INR 2,50,000
- The approximate maturity amount as per an expected NAV growth rate of 15% per year, comes to about INR 6,98,499
*The premiums are indicative only and subject to change at any point of time.
Guaranteed additions under LIC Nivesh Plus Plan
LIC Nivesh Plus plan comes with a provision of guaranteed additions wherein they add a specific percentage of your single premium to the Unit fund after the completion of particular years of the policy. The guaranteed addition based on the NAV of your selected fund will be converted and credited to your Unit Fund. The table below mentions the details of the additions:
|Completion of the Policy year||Guaranteed additions offered (percentage of single premium that has been paid)|
Exclusions of LIC Nivesh Plus Plan
Suicide: in case the life assured commits suicide within the initial 1 year of the policy, the nominee or beneficiary will only receive the Unit Fund Value and other coverages will not be entertained. The policy in this situation will automatically terminate.
Investment fund options in LIC Nivesh Plus Plan
Jeevan Nivesh Plus plan LIC gives you four fund options to invest your units into. You can even switch your units from one fund to another if you are not satisfied.
|Fund Type||Objective of Investment||Risk Factor|
|Bond Fund||Investing in fixed income securities to provide a safe investment option for the policyholders.||Low risk|
|Secured Fund||Investing in both fixed income securities and equities to offer steady returns to the policyholders.||Low to moderate risk|
|Balanced Fund||Investing in both fixed income securities and equities in equal proportion to provide growth and balanced returns to the policyholders.||Moderate risk|
|Growth Fund||Investing mostly in equities to provide long-term capital growth to the policyholders.||High-risk|
Other details of the LIC Nivesh Plus Plan
Some other details of the LIC Nivesh Plus plan are:
- Alterations in the PlanThe policyholder cannot alter the benefits offered under the Nivesh Plus Plan. However, he can cancel his rider if he wants; which can not be added further.
The plan offers no top-ups.
- LoanNo loan facility is available under this plan.
The policyholders can surrender their policy anytime during the policy tenure.
- Free-look PeriodThe policy offers a freelook period of 15 days and 30 days for offline and online policies, respectively.
The LIC Nivesh Plus Plan is a Unit Linked Insurance Plan that offers dual benefits of insurance and investment both into the same plan. This plan launched by LIC includes several before benefits single-Premium and attractive features for individuals of all age groups. Jeevan Nivesh Plan LIC offers death benefits if the life assured loses his life and provides a maturity benefit when the insured person survives the plan.
Apart from the other features, a major benefit that comes with the LIC Nivesh plus plan is that this policy can be bought online without any hassles.
NAV or Net Asset Value in a ULIP is referred to as the market value of each unit that is invested. In other words, it is the price per unit and is important for many calculations under the plan.
Yes, the LIC Nivesh plus offers a grace period of 15 days after the premium payment date to its clients wherein they can easily pay their due premiums.
A compulsory termination will be acted upon if the policy has completed its 5 years and yet there isn’t enough balance to recover the relevant charges.