A Review of LIC SIIP

What are the Key Features of LIC SIIP Plan

Below mentioned are some of the salient features of the LIC SIIP 752 (earlier SIIP 852 LIC plan) policy :

Tax Benefits
Tax benefits can be availed under section 80C and section 10 (10D) of the Income Tax Act as per the prevailing laws.

Customization of Funds Available
This LIC plan offers four fund options to choose from, which means that SIIP LIC plan customers can easily customize their plan as per their requirements. The available fund options are:

(i) Bond Fund

(ii) Secured Fund

(iii) Balanced Fund

(iv) Growth Fund

Switching of Funds
Under this feature, the users can switch between funds a maximum of four times a year without any charges but a fee of Rs. 100/- is applicable for every subsequent switch. The unit funds face charges that make the units vary as per the LIC SIIP NAV ( Net Asset Value).

Partial withdrawals

In order to meet the unannounced financial emergency, LIC SIIP policyholders can partially withdraw their funds after the successful completion of their five year anniversary, given that all due premiums until the partial withdrawal are fully paid. Minor policyholders will be allowed to make partial withdrawals after they turn 18 years of age.

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

Note: People often confuse LIC SIIP for LIC SIP, but both the terms are different. LIC SIIP is a unit linked life insurance plan along with investment benefits by LIC. Whereas, SIP is a method to invest in mutual funds regularly. SIP investment plan does not provide a life cover but wealth generation is its primary goal.

Learn about How LIC SIIP 752 Plan Changed Mamta’s Life

“I bought the LIC SIIP policy from Policybazaar in November 2022. The services provided by the executives and staff members of Policybazaar are commendable. Happy to be their customer. I used to worry about saving and also buying life insurance for my family, but buying this policy has fulfilled both of my requirements.” By Mamta

Our customer Ms. Mamta recently bought a LIC SIIP plan from Policybazaar. She was looking for a comprehensive solution that would provide protection to the family after her unfortunate demise, and would also look after her future financial requirements.

LIC SIIP is a unit-linked, life insurance plan that offers investment cum insurance benefits to the policyholder throughout the policy term. The plan comes with a pocket-full of benefits like a death benefit to the nominee in case of the policyholder’s death and a stable savings option using the investment funds available.

Let us dive into the benefits of LIC SIIP that convinced Ms. Mamta to choose this LIC 752 plan. You can calculate your estimated premium using the LIC SIIP plan 852 calculator (latest plan LIC SIIP 752) on LIC’s official website. The LIC SIIP plan calculator helps the policyholder make an informed decision.

What are the Benefits of LIC SIIP Plan?

Death Benefit

In case the policyholder dies before the risk inception and even during the grace period: Death benefit will be equal to the unit fund value.

In case the policyholder dies after the inception of risk: Death benefit will be highest of the following options given below:

• 105% of the total premium paid till the date of death minus the partial withdrawals in the last two years.

• Unit fund value

• The basic sum assured minus the partial withdrawals made in the previous two years.

Maturity Benefits

In case the policyholder survives the policy term, then the maturity value equal to the unit fund value will be paid to the life assured which can be further utilized for their future goals.

Refund of Mortality Charges

If the SIIP 752 user survives till the maturity date, then the total amount of mortality charges which was deducted for the life insurance cover during the policy term will be paid along with the Maturity Benefit. Refunds will only be payable if the premiums have been paid regularly.

Additional Rider Benefit for Protection

For enhanced protection, the LIC SIIP investment plan offers an additional rider namely, LIC's Linked Accidental Death Benefit Rider that can be bought along with the base plan by paying additional premiums.

Guaranteed Additions Available

A percentage of one annualized premium is added to the fund value as a Guaranteed Addition after completing certain policy years. The percentage of guaranteed additions at the end of the policy year are:

Note: LIC SIIP 752 is the latest plan at the moment. LIC SIIP 852 is an old version of the same plan.

Is LIC SIIP a Good or Bad plan?

LIC SIIP is a beneficial plan for people who are looking for a life insurance cover along with a savings option. The flexibility to choose the type of investment fund, basic sum assured, premium payable and method of settlement makes it even more adaptable to its customers needs. Along with Ms. Mamta, our other customers who have bought LIC SIIP plan are happy with the plan’s features and all the benefits they can avail. They all agree that the plan offers double benefits of investment and life insurance, and is an affordable way to secure your and your family’s future financial needs.

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