The LIC Nivesh Plus Plan, a unit-linked individual life insurance policy, was introduced by the company on March 2, 2020. With its dual benefits of investment and insurance, Nivesh Plus LIC helps you build wealth by investing a portion of your premium in the capital market. The policyholders of LIC Nivesh Plus are provided with a wide range of advantages and flexible choices at reasonable prices.
A single premium is required for LIC Nivesh Plus. As a result, you must pay a lump sum that is invested in the funds of your choosing. Next, choose a term for the policy from 10 to 25 years. For the quantity of coverage you want, you have two options.
Read: LIC Market Plus Plan
Nivesh Plus Plan Key Features
There are many features of nivesh plus like-
- This insurance policy has a single premium. implies that you only need to pay the insurance premium once and will be covered against risk for the whole term of the policy.
- The ULIP Plan is this. Like with other mutual funds, units of the fund would be assigned to you.
- eligibility for guaranteed increments at predetermined intervals, such as at the conclusion of six, ten, fifteen, twenty, and twenty-five years.
- Possibility of choosing between the two sum guaranteed alternatives.
- Depending on the age of the person purchasing the ULIP plan, the policy duration ranges from 10 to 25 years.
- 4 fund choices are available for investment:
- In a policy year, one can choose to move between the funds four times. Beyond this, each further swap costs Rs 100.
- This plan is available to any proposer between the ages of 90 days and 35 years (Option-2) and up to 70 years (Option-1).
Nivesh Plus- Eligibility
|Basic Sum Assured||Option1* 1.25 times Single Premium
Option 2 – 10 times Single Premium
|Age at Entry||90 days||70 years – Option1
35 years – Option2
|Age at Maturity||18 years||85 years – Option1
50 years – Option2
Option 2 (Entry Age upto 25)
Option 2 (Entry Age 26-30)
Option 2 (Entry Age 31-35)
|Premiums||Rs. 1,00,000||No limit|
Read: How to Surrender LIC Policy?
Nivesh plus- Benefits
Here are the benefits under nivesh plus-
- Death Benefit
In the event that the policyholder passes away, the LIC Nivesh Plus plan pays a death benefit to the designated beneficiaries.
The reward paid out if the policyholder passes away prior to the risk’s start date is the value of the unit fund.
The benefit paid out is greater than the basic sum insured (excluding partial withdrawals if they were made two years prior to the date of death) and the unit fund value if the policyholder dies after the date of beginning of risk.
- Maturity Benefits
When the LIC Nivesh Plus plan reaches maturity and the policyholder is still alive, maturity rewards are paid out. The sum is the same as the value of the unit fund.
- Rider Benefits
The LIC Nivesh Plus plan can be supplemented with the LIC Linked Accidental Death Benefit to increase protection. The death benefit is given as a lump payment in the event that the policyholder dies in an accident. Accident Benefit Sum Assured must be less than Basic Sum Assured in amount.
- Partial Withdrwals
After the fifth policy anniversary, partial withdrawals are permitted whenever. However, they are based on a number of parameters chosen by the company, such as the policyholder’s age, etc.
The Basic Sum Assured will be lowered based on the partial withdrawal amount for the next two years after it has been completed. The Basic Sum will be automatically restored after the two-year term has passed.
- Guaranteed Additions
Once a certain number of years have passed since the LIC Nivesh Plus Policy began, a certain percentage of the single premium payment keeps being contributed to the Policy Unit Fund. These are what they are:
- At the end of 6 years – 3%
- At the end of 10 years – 4%
- At the end of 15 years – 5%
- At the end of 20 years – 6%
- At the end of 25 years – 7%
All owners of the LIC Nivesh Plus Policy have the choice to choose between four distinct types of funds at any time during the policy’s term. The full Fund Value will be transferred to the new fund if a policyholder decides to switch to a different one.
Read: PLI VS LIC
Charges In Nivesh Plus Plan
- Premium Allocation Charge
This is the portion of the premium that is set aside for charges resulting from the premium that was paid; the remaining sum is used to buy the policy’s units.
Following are the premium Allocation fees:
- 3.3% for offline sales
- 1.50% for online sales
- Charges for Mortality-
The cost of insurance coverage is called the mortality charge, and it is deducted at the start of each policy month by cancelling the appropriate number of units. The mortality fee is determined by the sum at risk, which is the discrepancy between the basic sum assured and the value of the unit fund as of the charge deduction date.
- Accident Benefit Charges-
Accident Benefit Charges At the start of each policy month, this fee will be collected by deducting the necessary units from the Unit Fund.
- Fund management charges-
As the name implies, this fee is charged by the company to manage your LIC Nivesh Plus Plan funds, and it is dependent on the plan’s net asset value.
- Switching charge-
If a policyholder desires to transfer money between different funds offered by the company, switching fees will be assessed by the company.
The company allows a maximum of 4 switches every policy year, with a fee of INR 100 per changeover.
- Dis-continuation Charge –
This charge will be applied if you write to LIC that you wish to surrender the policy.
|Year of Discontinuation||AP upto Rs. 3,00,000||AP > Rs. 3,00,000|
|1||Lower of 2% of (AP or FV);
Max Rs. 3,000
|Lower of 1% of (AP or FV);
Max Rs. 6,000
|2||Lower of 1.5% of (AP or FV);
Max Rs. 2,000
|Lower of 0.7% of (AP or FV);
Max Rs. 5,000
|3||Lower of 1% of (AP or FV);
Max Rs. 1,500
|Lower of 0.5% of (AP or FV);
Max Rs. 4,000
|4||Lower of 0.5% of (AP or FV);
Max Rs. 1,000
|Lower of 0.35% of (AP or FV);
Max Rs. 2,000
LIC Nivesh Plus- FAQs
- Is LIC Nivesh Plus a wise financial decision?
Answer-A unit-linked, non-participating, and single premium individual life insurance plan is called LIC Nivesh Plus. It provides insurance and investing benefits that let you stay safe and generate excellent returns.
- What is the Nivesh Plus plan’s minimum premium?
Answer-Single premium payments are required for the LIC Nivesh Plus Policy’s premiums. All premiums must be paid in multiples of Rs. 10,000, and the minimum premium is Rs. 1,000,000. The maximum premium a policyholder desires to pay is unrestricted.
- Is a loan available through the LIC Nivesh Plus Plan?
Answer-A policyholder is not eligible to apply for a loan under this plan.
- What is the length of the LIC Nivesh Plus Plan’s free lock-in period?
Answer-A policyholder may return the LIC Nivesh Plus Policy to the company within 15 days if he is dissatisfied with it. A policyholder will have 30 days to return an online-purchased policy.