LIC SIIP Plan (Plan no. 752) 2025

LIC SIIP 752- Plan Overview

LIC SIIP 752 (Systematic Investment Insurance Plan) is a unique investment option offered by the LIC that combines life insurance coverage with the potential for market-linked growth. This unit-linked plan offers a variety of equity and debt funds, allowing policyholders to customize their investment strategy based on their individual risk tolerance and financial goals.

In addition to providing life insurance coverage, LIC SIIP offers long-term wealth growth, helping individuals build a financial cushion for a secure future.

LIC SIIP was formerly available as LIC 852 plan

Features of LIC’s SIIP Plan

Let’s look at some of the key features of the policy.

• LIC SIIP plan 752 is a regular premium plan with savings options of monthly, quarterly, half-yearly and yearly.

• LIC SIIP offers four fund options to choose from.

• This plan offers risk cover with investments.

• The policyholder can make free switches between funds.

• The plan offers Guaranteed Additions at the end of 6, 10, 15, 20, and 25 years.

• The plan also provides add-on rider benefits such as LIC accidental death rider, to enhance the policy coverage.

• There is also an option to receive the death benefit in installments.

• The surrender facility is available after 5 year lock-in period.

• If the policyholder survives till maturity, the mortality charges are refunded as part of the payout.

• Tax benefits can be availed U/S 80C and 10(10D) of the Income Tax Act.

• Partial withdrawals of funds are applicable under the policy.

Eligibility Criteria of LIC SIIP

The following are the eligibility criteria for LIC’s SIIP plan.

Benefits of LIC SIIP (Systematic Investment Insurance Plan)

1. Death Benefit

   If the life assured dies before the risk commences, the beneficiary of the LIC policy will receive an amount equal to the unit fund value.

   On death, after the risk commences, the highest of the following death benefit is payable:

   • Unit fund value; or

   • 105% of the total premium paid till the date of death reduced by partial withdrawals, if any; or

   • The basic sum assured amount on death is reduced by partial withdrawal, if any.

   The beneficiary can avail the death benefit as a lump sum or in installments. 

2. Maturity Benefit

   Suppose the life assured survives the maturity date & provided all the due premiums are paid. In that case, the unit fund value along with the refund of mortality charges is payable by the insurer.

3. Guaranteed Additions  

   Guaranteed additions as a percentage of one yearly premium are added to the fund value on completing the following years of the policy. This is on the condition that all the due premiums are paid.

   End of the Policy year	Guaranteed Additions (% of one yearly premium)
   6	5%
   10	10%
   15	15%
   20	20%
   25	25%

Optional Benefits Offered by LIC SIIP

1. Rider Benefits

   LIC Accidental Death Benefit Rider

   The plan offers an accidental death benefit rider option. Under this rider option, the accidental benefit sum assured is payable to the beneficiary if the insured person dies an unfortunate death due to an accident. The benefit offered under this policy shall be available till the maturity date or till the policy anniversary on which the age of the life assured is 70 years, whichever is earlier. Similarly, the rider benefit is also available in Term Insurance plans

2. Settlement Option

   This option allows the Death Benefit to be received in instalments. It can be chosen by the Policyholder (if the Life Assured is a minor) or by the Life Assured (aged 18 or above) during the policy term. The payout mode, i.e., yearly, half-yearly, quarterly, or monthly, must be selected in writing at the time of the request, along with the death certificate. The installments will be spread over a maximum of 5 years from the date the insurer is notified of the Life Assured's death. Once selected, the payout mode cannot be changed by the nominee.

3. Partial Withdrawals

   The policyholder can avail the facility of partial withdrawal of the units at any time after completing 5 years of the policy, provided all the premiums are duly paid. Some conditions are:

   • In the case of a minor- Partial withdrawals are applicable only after the life assured is age 18 years or above.

   • The withdrawals can be made in a fixed amount or in a fixed number of units.

   • The maximum sum of partial withdrawal during each policy year can be as follows:

   Policy Year	%of Unit Fund
   6th to 10th	20%
   11th to 15th	25%
   16th to 20th	30%
   21st to 25th	35%

Investments of Funds

Unit Fund- The premium paid towards the policy is utilized to buy units as per the policyholder's type of funds. LIC’s SIIP offers 4 different fund options to choose from. Here is a look at these fund options and their investment pattern.

Sample Illustration of LIC SIIP 

Let us understand the LIC SIIP plan with example of a 35-year-old individual who has purchased this plan offline and opted for the following policy details:

Fund type: Bond

Premium paying mode: Yearly

Basic Sum Assured: 6,00,000

Here are the results of the fund value and the Death Benefit at various policy terms:

Charges Applicable Under the LIC’s SIIP Plan

Let’s take a look at the charges applicable under the LIC’s SIIP Plan.

1. Premium Allocation Charge

   The premium allocation charge constitutes the part of the premium used to buy units for the policy. These charges shall never exceed 12.5% of the annualised premium amount.

   The following are the premium allocation charges.

   Premiums	Offline Sale	Online Sale
   1st year	8.00%	3%
   2nd – 5th year	5.50%	2%
   6th year and thereafter	3.00%	1%

2. Policy Administration Charges

   From the 6th policy year onward, a monthly charge of ₹150 is deducted from the Unit Fund by cancelling units. This amount increases by 5% each year starting from the 7th year, up to a maximum of ₹500 per month (₹6,000 per year).

3. Mortality Charges

   Mortality charge is the cost of the life insurance cover. It is age-specific and is charged at the beginning of each policy month by canceling the appropriate number of units out of the unit fund value. The mortality charge depends on the sum at risk during the policy tenure.

   

4. Accidental Benefit Charges

   Accidental benefit charge applies to the accidental death benefit rider, if opted. This charge is deducted at the start of each month by canceling the appropriate number of units out of the unit fund while the policy is in force.  The accidental benefit charge is applicable at the rate of Rs.0.40 per thousand.

5. Fund Management Charge

   This charge is applicable as a percentage of the asset's value and is appropriated by adjusting the net asset value fund management charges. It is imposed at the time of calculating net asset value (NAV), which is done daily.

6. Switching Charges

   Under LIC’s SIIP plan, the policyholder can switch funds up to four times in a financial year. Subsequent switches in that year are subject to switching charges of Rs.100. The higher cap of this charge can not exceed Rs. 500/- per switch.

7. Partial Withdrawal Charge

   Rs. 100 is deducted from the unit fund as a partial withdrawal charge at the time of partial withdrawal.

8. Discontinuance Charges

   This charge is deducted by cancelling units from the Unit Fund based on its value on the policy discontinuance date.

9. Tax Charges

   Tax charges, if any, will be applied as per prevailing tax laws and rates set by the Government of India or any tax authority.

10. Miscellaneous Charges

    Miscellaneous charges apply for changes like switching premium modes or adding the Accident Benefit Rider after issuing the policy. A flat fee of ₹100 will be charged by cancelling units from the Unit Fund on the date of the change.

Policy Details of LIC SIIP Plan

1. Free-look Period

   If you are not satisfied with the policy's T&Cs, the policy may be returned to you within 30 days from the receipt date of plan documents in physical or electronic form (whichever event is earlier), mentioning the reasons of objections.

2. Grace Period

   A grace period of 30 days will be offered for yearly, half-yearly, or quarterly premium payments and 15 days for monthly premium payments from the 1st unpaid premium.

3. Surrender

   You can surrender the LIC SIIP anytime, however, these are the 2 conditions:

   • If surrendered during the 5-year lock-in, the fund value (after deducting charges) is moved to the Discontinued Policy Fund. Only Fund Management Charges apply, and no risk cover is available.

   • If surrendered after 5 years, the policy terminates after paying the full fund value without discontinuing charges.

4. Premium Discontinuance

   The policy becomes discontinued if you fail to pay a premium under the plan before the grace period expires.

5. Reinstament

   A surrendered policy cannot be reinstated, even if the policyholder requests it during the 5-year lock-in period.

What is Not Covered Under LIC SIIP?

Suicide is not covered under the LIC SIIP plan. In case the policyholder commits suicide within 12 months from the date of policy initiation or the date of revival of the policy - the beneficiary of the policy will receive the unit fund value available as on the date of death along by submitting the death certificate.

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