LIC Money Plus Plan

LIC Money Plus- An Overview

LIC Money Plus is a ULIP plan offered by the LIC of India. The plan is designed to provide the dual benefits of life protection and wealth creation. Under this plan, the policyholder can choose the level of cover-up to an extent that will depend on the term picked. The policyholder can also choose the mode and amount of the premium at their convenience. After the premium is allocated, the amount will be utilized to buy units as per the fund type selected by the policyholder.

Eligibility Criteria of the Money Plus Insurance Plan

Benefits of LIC Money Plus Plan

1. Death Benefit:

   • If the policyholder passes away, the benefit will be the higher of either the Sum Assured or the Fund Value of the units in the Policyholder’s Fund.

   • For life assured under 12 years old at the start of the policy, only the Fund Value will be paid out in case of death.

2. Maturity Benefit:

   • If the policyholder survives until the end of the policy term, they will receive the Fund Value of the units held in the Policyholder’s Fund.

3. Optional Benefits:

   • Accident Benefit: If you are over 18, you can choose this option to get additional coverage in case of accidental death. The benefit amount ranges from Rs. 25,000 to Rs. 50 lakh, depending on your coverage across all policies with LIC of India and other insurers.

   • Critical Illness Benefit Rider: If you are between 18 and 50 years old and the policy term is 10 years or more, you can add this rider for extra coverage in case of certain critical illnesses. The coverage amount ranges from Rs. 50,000 to Rs. 5 lakh, including all policies with LIC of India.

Charges Deducted Under Money Plus Plan

• Mortality (life cover) charges: Mortality charges will be deducted monthly. The charge will depend on the policyholder's age during the policy year. The charge will not be deducted unless the basic sum assured amount is higher than the fund value of the units.

• Accident Benefit Charge: If the policyholder has chosen the accident benefits cover, a charge of 0.50 paise per 1000 sum assured of accident benefit per policy year will be deducted by monthly cancellation of a suitable number of units.

• Critical Illness Benefit Charge (CIR): CIR charges during a policy year will be based on the policyholder's age. If the policyholder has chosen the Critical Illness Benefit, the premium will increase every year, again depending on the policyholder's age.

• Policy Administration Charges: During the first policy year, policy administration charges of Rs.60/—per month and Rs. 20/—per month thereafter throughout the policy tenure will be deducted by cancelling a suitable number of units out of the policyholders’ fund value. No flat fee or policy charge will be charged separately from the policyholder.

• Service Tax Charge: A service tax charge shall be collected by canceling the appropriate number of units out of the policyholder’s fund value every month on the mortality charges.
  The Money Plus Insurance policy is best suited for those who are risk-averse and want both investment and insurance benefits simultaneously. Moreover, LIC's high claim settlement ratio makes the Money Plus Insurance policy one of the best Unit-Linked plans offered by the company.