LIC Systematic Wealth Creation Plan 271

About Systematic Wealth Creation Plan 271

Systematic Wealth Creation Plan 271 is designed for policyholders who want to invest systematically over a limited premium-paying term while keeping life cover in place for as long as the policy remains active. The premium is invested across funds managed by different fund houses through the All-Funds platform, and the investment risk sits entirely with the policyholder rather than the insurer.

Key Features of Systematic Wealth Creation Plan 271

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

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

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

• Access to funds managed by different fund houses through the All-Funds platform, with the policyholder choosing the 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

• 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 Systematic Wealth Creation Plan 271

Eligibility under Systematic Wealth Creation Plan 271 is set by age, premium amount, and payment term (Yearly, Half-Yearly, Quarterly and Monthly):

Benefits of LIC Systematic Wealth Creation Plan 271

LIC Systematic Wealth Creation Plan 271 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 Systematic Wealth Creation Plan 271 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 and other applicable charges.

Partial Withdrawal

Partial withdrawals are allowed at any time during the policy term, provided the remaining fund value stays above USD 5,000. Each withdrawal must also be for at least USD 5,000, and is paid net of surrender charges, with the policy continuing 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 Systematic Wealth Creation Plan 271

Systematic Wealth Creation Plan 271 has several features that shape how the policy is administered. Below are the policy details discussed briefly:

Charges Under the Plan

All charges under the plan are guaranteed and fixed throughout the policy term, though they can be revised based on experience and subject to regulatory approval:

Surrender Charge

The surrender charge is applied as a percentage of the total premiums paid till the time of surrender or partial withdrawal, and it tapers down over the premium paying term as follows:

Grace Period

Not applicable since this is a single premium plan.

Free Look Period

A 30-day free look period is available from the date of receipt of the policy document (or as specified in 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.

Paid Up Value

If a premium is missed beyond the grace period, the policy converts to a reduced paid-up policy, and applicable charges continue to be deducted until the fund value is insufficient to meet them, at which point the policy terminates.

Surrender Value

The policy acquires a surrender value on completion of three full policy years, calculated as the fund value after deducting the relevant surrender charge.

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 Systematic Wealth Creation Plan 271.

Assignment

Assignment is not permitted at any stage of the policy, so the policyholder cannot transfer their rights or ownership under this plan to another party.

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 Systematic Wealth Creation Plan 271

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, civil commotion, rebellion, or terrorism are not payable under this plan.

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