LIC Nivesh Plus is a ULIP, non-participating, single premium life insurance plan. On payment of a single premium, the plan provides insurance cum investment cover during the term of the policy. You can buy this plan offline as well as online after this blog LIC Nivesh Plus Review. Under this plan, you have the option of investing in one of four types of investment funds. The unit fund is subject to various charges and the unit value may increase or decrease depending on the net asset value.
LIC Nivesh Plus Review And Eligibility
|Minimum Entry Age||90 days -70 years|
|Principal Sum Assured||Option 1: 1.25 Times The Single Premium
Option 2: 10 Times The Single Premium
|Policy Tenure||10-35 Years|
|Premium||1 Lakh And No Maximum Limit|
|Lock-In Period||5 Years|
|Maximum Maturity Age||85 Years|
06-05-2021 Table Updated
LIC Nivesh Plus Review & Features
Death Benefit: Under the LIC Nivesh Plus Review, if death occurs before the commencement of risk, the nominee will receive only the Unit Fund Value. However, if death occurs after the commencement of the risk, the nominee will receive the higher of the Sum Assured and the Unit Fund Value.
Maturity Benefit: Where the Life Assured survives till the date of maturity, the Life Assured will receive an amount equal to the Unit Fund Value as Maturity Benefit.
Guaranteed Edition: It claims a maximum guaranteed addition of 7% for 25 policy years. Apart from this, you can take the following information for the rest of the years:-
|End Of Policy Year||In Addition To Guarantee|
Partial Withdrawals: Partial withdrawal can be made from the fund at any time after the expiry of 5 years of the policy, subject to the following conditions:-
- The minimum age of the policyholder should be 18 years or above for partial withdrawal.
- Partial withdrawal is in the form of a fixed amount or a fixed number of fixed units.
- The maximum amount of partial withdrawal in percentage during each policy year will be as follows:-
|Policy Year||Percentage of Unit Fund|
|6 To 10||15%|
|11 To 15||20%|
|16 To 20||25%|
|21 to 25||30%|
06-05-2021 Table Updated
Switch: The LIC Nivesh Plus Review allows the insured to switch between 4 different funds during the specified policy term. If the insured opts for switching, the entire fund value will get switched to the new fund.
Payment: The plan provides an option to receive the death benefit in installments.
Surrender: The insured is allowed to surrender the policy as and when required. If you surrender the plan in the initial 5 years, the unit fund value will be payable after deduction of exemption charges. If you surrender after the end of the lock-in period (5 years), the entire Unit Fund Value will be payable.
Free-Look Period: This plan comes with a free look period of 15 days under which you can cancel the plan and get a refund if you so desire.
Loan: Insured cannot take the loan against the LIC Nivesh Plus policy.
Fee Payment In LIC Nivesh Plus
As LIC Nivesh Plus is a ULIP plan, the insured has to pay multiple charges under one. Let’s check them out below-
Premium Allocation Fee: The company will collect the premium allocation charges at the inception of the policy. Such charges will be reduced by your single premium and the balance amount can be used to purchase units. Given are the premium allocation charges that you need to pay-
- Offline sales – 3.3%
- Online sales – 1.5%
Death Rate: The company will take the death rate only at the time of inception of the policy for the insurance cover. It will be based on the sum of the risks which is the difference between the Basic Sum Assured and the Unit Fund Value.
Fund Management Charges: This fee is required to run the fund under LIC Nivesh Plus. This will be similar to the expense ratio under mutual funds which is the fund management fee.
- This is 1.35% of the total fund value.
- In case of a discontinued policy, the fund will be approximately 0.5% in the year.
Exemption Fee: The same charges will be levied by canceling the units in the policy.
|1st Year||Single-Premium or 2% of Fund Value Minimum
|2nd Year||Single-Premium or 1.5% of Fund Value Minimum Maximum 2,000|
|3rd Year||Single-Premium or 1% of Fund Value Minimum
The maximum is Rs 1,500.
|4th Year||Single-Premium or 0.5% of Fund Value Minimum Maximum 1,000|
|Single-Premium Or 0.5% Of Fund Value Minimum Maximum 1,000||Nil|
06-05-2021 Table Updated
Optional Rider: The accidental death benefit is available as an optional rider under LIC Nivesh Plus. You can opt for the rider at the time of commencement of the policy or at the policy anniversary. The benefit of this additional rider will be available till the date of maturity or till the policy anniversary. In case of accidental death, the rider will pay an accidental death benefit amount along with the death benefit under the basic plan. Accidental Death Benefit Sum Assured cannot exceed the limit of Basic Sum Assured.
What Is Not Included?
Suicide: If the Life Assured commits suicide during the initial 12 months of the policy, the beneficiary or nominee will receive the available Unit Fund Value. The plan will not receive the benefit of any other coverage under the scheme and will be terminated.
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