LIC India has always stepped forward in the insurance sector with reliable and affordable plans to cover the various insurance needs of all kinds of Indian customers. One such plan is the LIC Money Plus Plan, which is a unit-linked endowment plan formulated by the Life Insurance Corporation of India. This means that the premiums are to be invested as units of a unitized insurance fund.Read more
LIC Money Plus Policy ensures a regular premium paying term. The best part is the plan offers both investments as well as insurance during the entire LIC policy term.
Eligibility Criteria of LIC Money Plus Plan
Regular Premium (for monthly ECS mode) is:
Regular Premium (For all other ECS modes) is:
Basic Plan Sum Assured
Minimum Sum Assured: 5 X Annualized Premium
Maximum Sum Assured:
Core Benefits of LIC Money Plus
LIC Money Plus Plan has two main benefits, which can be broadly categorized into death benefits and maturity benefits.
A) Death Benefit
In the event of death, whatever is the greater value of, the Sum Assured or the Fund Value of the policyholder, will be paid.
B) Maturity Benefit
At the time when the said Life Insurance survives the maturity date, the amount that is equivalent to the Policyholder's Fund Value will be paid.
A) Accident Benefit Rider:
Customers, who are 18 years of age and above, can avail themselves of the Accident Benefit Rider, corresponding to Life Cover value. The rider value should be at least Rs. 25,000 and may go up to Rs. 50, 00,000.
B) Critical Illness Benefit Rider:
If a customer falls in the age group of 18 to 50 years, he can avail of this benefit rider for critical illness cover, corresponding to Life Cover value. The rider value should be at least Rs.50 000 and may go up to Rs. 10 00,000. However, in such a case, the policy term must be ten years and above.
2. Investment of funds
Suppose a customer decides to invest in the LIC Money Plus policy. In that case, the premiums that have been assigned to purchase units will be mandatorily invested in accordance with the company's investment design. There are four types of funds under which the policyholder can make investments. They are as follows:
This is a low-risk fund in which Corporate Debt is between 60% - 40%
This is a lower to medium risk fund which provides steady income. Corporate debt is a minimum of 45%, and short term investments are between 15% - 55%
This is a medium-risk fund that provides balanced income and growth. Corporate debt is a minimum of 30%, and short term investments are a maximum of 40%
This is a high-risk fund that provides long-term capital growth. Corporate debt is a minimum of 20%, and short term investments are maximum of 40%
3. Unit Price Calculations
Units are issued on the basis of the Net Asset Value (NAV) of the specific fund at the time of issuing. The NAV is calculated every day.
It is applied when a fund is expanding.
It is applied when a fund is contracting.
Relevance of Net Asset Value (NAV)
For premiums that are received at a specific time (currently 3 pm), the closing NAV of the day on which the premium is accepted will be applicable.
For premiums received after the specified time, the NAV of the next day will be applicable.
This rule will be applied in the cases of applications for surrender, partial withdrawal, etc.
In cases of maturity claim, the NAV of the date of maturity shall be applied.
The timing will be in accordance with the existing guidelines and changes as per the instructions from IRDA.
4. Charges under the Plan
This is the percentage deducted from the premium of the LIC Money Plus policy towards charges from the premium received. The balance makes up that part of the premium that is utilized to purchase units for the policy.
LIC Money Plus planoffers three types of risk covers.
Mortality Charge – This is paid every month and depends on the age of the policyholder. Critical illness benefit rider charge - This is the cost of the Critical Illness Benefit rider. This is also a monthly charge and is age-specific.
Accidental Benefit Charge - It is the monetary cost of Accident Benefit. This is also charged monthly, and the rate at which it is charged is Rs. 0.50 per thousand.
LIC Money Plus policyhas a few other charges attached to it, e.g., charges for policy administration, fund management, etc.
LIC has the right to revise all or some of the charges except the Mortality charge and the Premium Allocation charge. The modification will be done only with the approval of the IRDAI. The charges, though revisable, are subject to certain limitations.
The completion of the third policy anniversary is mandatory before surrender value can be claimed. The surrender value is the same as the policy holder's sum value at the date of surrender. A surrender charge is not applicable.
If a customer applies for the surrender of the policy within five years, then the policyholder’s fund value will be payable with no additional charges levied.
In the event of the death of a customer after the surrender but before completing five years, the value payable on completion of 5 years shall be received by the nominee.
In order to file a proper LIC Money Plus plan claim, one may need the following documents.
1. In the event of the policy holder’s death
2. In the event of the maturity claims
The Process to buy LIC Money Plus Policy online
The following steps are to be undertaken to purchase the LIC Money Plus plan online:
Step 1:Visit the insurer’s website and find the plan on the homepage.
Step 2:Click on the option “Buy Online."
Step 3:One will need to enter personal details like name, date of birth, gender, complete address, and contact details like phone number and email id.
Step 4:It will display a premium quote. If one likes the financial parameters, they can go ahead and upload the required documents in the form of scanned copies.
Step 5:One can pay the premium online to complete the process of purchase.
Key Exclusions of the Plan
In the event that the policyholder dies due to suicide at any time within 12 months from the policy purchase, he will automatically be excluded from the LIC Money Plus plan.
A1. There are several benefits of paying LIC Money Plus Plan premiums via net banking. They are as follows:
A2. A customer may surrender the LIC Money Plus plan only after the third policy anniversary is completed. He will receive a surrender value that will be the same as his sum value at the time of surrender.
A3. Yes. The number of partial withdrawals is deducted from the Sum Assured for the period of two years once a partial withdrawal is carried out.
A4. The receipt for the policy is mailed to the address of the policyholder. This is done after a period of two or three days. The company uses this time to settle all the accounts. In the event that a policyholder does not receive the receipt, he can collect a certificate stating that he has paid the premium from a LIC branch office. The company does not allow the printing of duplicate receipts under any circumstance.
LIC also issues E-receipts for new policyholders. The E-receipts are mailed to the email id of the policyholder.
A5. The premiums may be paid on a monthly, quarterly, half-yearly, or yearly basis.
A6. Yes, the policyholder has the option to revive a lapsed LIC Money Plus planduring the revival period, which is two years from the first unpaid premium's due date or before maturity.
A7. No loan can be issued under this plan.
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
*The investment risk in an investment portfolio is borne by the policyholder.
**All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.
***Tax benefit is subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ