Life Insurance Corporation of India (LIC) has launched its new ULIP product across the country. New Endowment Plus Plan is an insurance-cum-investment plan that provides dual benefit of risk cover as well as investment markets.
Only available offline, this new plan has four funds, namely, bond fund, balanced fund, secured fund, and growth fund. In addition, it comes up with the option of switching between these funds, subject to a maximum of four free switches in a year.
The policyholder can choose the amount of premium depending on which they will get the equivalent level of cover. Each premium paid by the policyholder shall be subject to premium allocation charges. The allocated premium will be utilized to purchase units as per the selected fund type.
According to the officials, the premium allocation charges would range from 7.5% of premium paid in the first year to 3% from the sixth year onwards.
The policyholder’s entry age for this product would be in between 90 days to 50 years. The policy term would be 10-20 years and the minimum annual premium would be Rs. 20,000 with no upper limit on the annual payable premium.
This insurance-cum-investment product will also offer double death benefit. On death of the policyholder before the commencement of risk, an amount equal to the policyholder’s fund value will be payable. While if the death happens after date of commencement of risk, an amount equal to the higher of basis sum assured or policy holder's fund value will be payable.
In addition to that, it comes with an accident death benefit rider, which provides for an extra amount equal to accident death benefit sum assured on death due to accident.