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LIC launches maiden unit linked insurance plan (ULIP)

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Unit-Linked Insurance Plan (ULIP), a new Endowment Plus policy which offers investment cum insurance during the term policy and provide due benefit of risk cover and benefits of investment markets is launched by Life Insurance Corporation of India (LIC).

  • The policy holders will have options to choose from any of the four funds -bond fund, secured fund, balance fund and growth fund through this policy.
  • This policy also adds conveniences of switching between these funds. Within a given policy year, four switches will be allowed free of charge.
  • The NAV (net asset value) of all the segregated funds will be computed on daily basis and will be based on investment performance and fund management change of each fund type. On the launch, tomorrow, the NAV under all funds will be Rs 10.
  • The policy will also offer double death benefit.
  • On death before the commencement of risk, an amount equal to the policy holder’s fund value will be payable, while on death after date of commencement of risk, an amount equal to the higher of basis sum assured or policy holder’s fund value will be payable.
  • Further, it comes with an accident death benefit rider which provides for an additional amount equal to accident death benefit sum assured on death due to accident.
  • The premium allocation charges would range from 7.5% of premium paid in the first year to 3% from the sixth year onwards.
  • The minimum age at entry for this product would be 90 days whereas the maximum age at entry would be 50 years. The policy term would be 10-20 years and the minimum annual premium would be Rs 20,000 with no limit on the maximum premium payable annually.
  • Partial withdrawal will also be available under the plan.
  • The product is likely to be available only offline.