LIC Flexi Wealth Builder Plan 281

About LIC Flexi Wealth Builder Plan 281

LIC Flexi Wealth Builder Plan 281 is designed for people who want ongoing life cover paired with market exposure, rather than a fixed-term policy that expires after a set number of years. It is an individual, unit-linked, whole-life insurance and investment policy that lets the policyholder invest across funds managed by different fund houses through an all-funds platform, while the investment risk sits entirely with the policyholder rather than the insurer.

Key Features of LIC Flexi Wealth Builder Plan 281

The plan is built around a few defining features that separate it from a traditional endowment policy:

• Individual, unit-linked, whole-life insurance policy with no fixed maturity date

• Limited premium payment terms of 10, 15, or 20 years, rather than paying for life

• Access to funds managed by different fund houses through an all-funds platform, with the policyholder choosing the fund allocation

• Fund value that moves up or down with market performance, since investment risk sits with the policyholder

• Unlimited fund switching at no charge throughout the policy term

• No maturity date, since this is a whole-of-life product rather than a fixed-term one

• Top-up premiums starting at USD 500, in multiples of USD 100, can be added at any point during the premium paying term

Eligibility Criteria for LIC Flexi Wealth Builder Plan 281

Eligibility under LIC Flexi Wealth Builder is set by age, premium amount, and payment term. These limits determine who qualifies and how the investment scales:

Benefits of LIC Flexi Wealth Builder Plan

LIC Flexi Wealth Builder Plan 281 benefits are as follows:

Death Benefit

In the event of the death of the life assured, 101% of the fund value as on the date of death is paid to the nominee. The policy terminates once this payment is made.

Maturity Benefit

As LIC Flexi Wealth Builder is a whole-of-life plan, there is no maturity benefit tied to a fixed policy term. Instead, the policyholder can withdraw 100% of the fund value at any point, subject to applicable surrender charges.

Partial Withdrawal

Partial withdrawals are allowed once the first policy year is complete. The remaining fund value must stay above USD 5,000 after the withdrawal, and each withdrawal must be for at least USD 1,500. The withdrawal amount is paid net of surrender charges, and the policy continues in force afterwards.

Fund Switching

The policyholder can switch between funds an unlimited number of times during the policy term, at no charge. If a fund house withdraws a particular fund, the policyholder can either move that investment to another fund or withdraw its full value without incurring a surrender charge.

Policy Details of LIC Flexi Wealth Builder Plan 281

LIC Flexi Wealth Builder has several features that shape how the policy is administered. Below are the policy details discussed briefly:

Charges Under the Plan

Every unit-linked plan reduces returns through built-in charges, and LIC Flexi Wealth Builder Plan 281 keeps these fixed for the policy term unless revised through regulatory approval:

Surrender Charge

Surrender charges apply according to the schedule below, tapering down as the policy matures:

Grace Period

If a premium is missed after the grace period, the policy converts to reduced paid-up status, and it terminates once the fund value can no longer cover the ongoing charges.

Free Look Period

A 30-day free look period is available from the date the policy document is received, subject to the policy terms. Within this period, the policyholder can return the policy and receive the value of allocated units plus any unallocated premium, after deducting cancellation charges and underwriting costs incurred.

Policy on the Life of a Minor

Where the policy is taken on the life of a minor, it automatically vests in the life assured on their attaining majority.

Policy Revival/Reinstatement

If the policyholder revives a lapsed policy, the premiums collected after charges are used to purchase units at the NAV applicable on the date of revival.

Loan Facility

No loan facility is available under LIC Flexi Wealth Builder.

Assignment

Assignment is not permitted at any stage of the policy.

Paid Up Value

If a premium is missed after the grace period, the policy converts to reduced paid-up status. Charges continue to be deducted from the fund value. The policy terminates once the fund value can no longer cover them.

Nominee / Beneficiary

The life assured can appoint a nominee to receive the policy proceeds on death. This can be done at the time of purchase or later by endorsement. The nominee can be changed anytime, provided the change is submitted in writing and registered by the company.

Exclusions of LIC Flexi Wealth Builder Plan 281

Certain circumstances limit or remove the payout under LIC Flexi Wealth Builder, and a free look period gives the policyholder a window to exit the policy shortly after buying it.

Suicide

If the death of the life assured results directly or indirectly from suicide, whether sane or insane at the time, within 12 months of the risk commencement date, only the fund value is payable as the death benefit, after deducting applicable charges.

Other Restrictions

If a nominee causes the death of the life assured through a violent act, that nominee forfeits the right to the death benefit, though it remains payable to other legal heirs. Claims arising directly or indirectly from war, invasion, riot, rebellion, or terrorism are not payable under this plan.

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