LIC’s Wealth Plus is a unit linked plan that safeguards your investment from market fluctuations, so that your investments are protected in financially volatile times. This plan offers payment of Fund Value at the end of policy term, based on highest Net Asset Value (NAV) over the first 7 years of the policy, or the NAV as applicable at the end of the policy term, whichever is higher. NAV of the fund will be subject to a minimum of Rs. 10/-. The policy term is 8 years with an extended life cover for 2 years after the completion of policy term. This plan will be available for sale for a limited period.
You can pay the premium either in a single lump sum or for 3 years. You can choose the level of cover within the limits, which will depend on your age whether the policy is a Single premium or Limited premium contract and on the level of premium you agree to pay.
Premiums paid after allocation charge will purchase units of the Fund. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).
1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the 3 years premium paying term. Alternatively, a Single premium can be paid.
2. Guaranteed NAV: In this product there is a guarantee of the highest NAV recorded on a daily basis, in the first 7 years of the policy, subject to a minimum of Rs. 10. This means the payment at the end of the policy term will be based on highest Net Asset Value (NAV) recorded over the first 7 years of the policy, or the NAV as applicable on the end of the policy term, whichever is higher. The guarantee will be applicable only for payment made at the end of the policy term irrespective of any partial withdrawals made during the policy term. The period of 7 years starts from the date of commencement of policy.
3. Eligibility Conditions and Other Restrictions:
|(a) Minimum Age at entry
||– 10 (age last birthday)
|(b) Maximum Age at entry
||– 65 years (age nearer birthday)
|(c) Policy Term
||– 8 years
|(d) Extended life Cover
||– 2 years after the completion of potrcy term
|(e) Minimum Premium: -v
||– Rs. [20,000] p.a.
|3 years Premium Paying potrcies
|(Other than monthly (ECS) mode)
|Monthly (ECS) mode
||– Rs. [2,000] p.m.
|Single premium potrcies
||– Rs. [40,000] p.a./
|(f) Sum Assured under the Basic Plan
Minimum Sum Assured:
3 years Premium Paying Term: 5 times the annualized premium
Single Premium: 1.25 times the single premium.
Maximum Sum assured:
3 years Premium Paying Term:
10 times the annualized premium if age at entry is upto 50 years
5 times the annualized premium if age at entry is 51 years and above
5 times the Single premium if age at entry is upto 40 years.
2.5 times the Single premium if age at entry is 41 to 50 years.
1.25 times the Single premium if age at entry is 51 years and above.
Where the minimum Sum Assured is not in the multiples of Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000. Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall in multiples of Rs. 500/-.
4. Other Features:
i) Partial Withdrawals: Youmay encash the units partially after the third policy anniversary subject to the following:
- In case of minors, partial withdrawals shall be allowed from the policy anniversary coinciding with or next following the date on which the life assured attains majority (i.e. on or after 18th birthday).
- Partial withdrawals will be allowed twice in a policy year.
- Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units subject to a minimum amount of Rs. 2000/-.
- Under 3 years Premium Paying Term policies where less than 3 year’s premiums have been paid and further premiums are not paid, the partial withdrawals shall not be allowed.
- Under 3 years Premium Paying Term policies where all the’ premiums have been paid, partial withdrawal will be allowed subject to Policyholder’s Fund Value being at least one annualized premium
- Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of 25% of the single premium in the Policyholder’s Fund Value.
ii) Increase / Decrease of risk covers:No increase or decrease of benefits will be allowed.
iii)Discontinuance of premiums: If premiums are payable either yearly, half-yearly, quarterly or monthly (ECS) and the same have not been duly paid within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium.
If the policy lapses, the Life Cover and Accident Benefit rider cover, if any, shall cease and no charges for these benefits shall be deducted. However, deduction of all the other charges shall continue. The benefits under such a lapsed policy shall be payable as under:
1. In case of Death: The Policyholder’s Fund Value.
2. In case of death due to accident: Only, the amount as under A above.
3. In case of Surrender (including Compulsory Surrender): Policyholder’s Fund Value / monetary value of units as the case may be, shall be payable after the completion of the third policy anniversary. No amount shall be payable within 3 years from the date of commencement of policy.
4. In case of Partial withdrawal: Partial Withdrawals shall not be allowed under such a policy even after completion of 3 years period.
iv)Revival: If due premium is not paid within the days of grace, the policy lapses. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium. The period during which the policy can be revived will be called â€œPeriod of revivalâ€ or â€œrevival periodâ€.
The policy may be revived within two years from the due date of first unpaid premium. The revival shall be made on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium without interest. The mortality charge thereafter shall be based on the age nearest birthday as on the date of revival. There will be a charge of Rs. 500/- at the time of revival.
The Corporation reserves the right to accept the revival at its own terms or decline the revival of a lapsed policy. The revival of a lapsed policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Proposer / Life Assured.
Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges, the policy shall be terminated and thereafter revival will not be entertained.
A policy once surrendered cannot be reinstated.
6. Risks borne by the Policyholder:
- LIC’s Wealth Plus is a Unit Linked Life Insurance products which is different from the traditional insurance products and are subject to the risk factors.
- The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
- Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Wealth Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
- Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
- The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
- All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.
13. Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under: Value of units in the Policyholder’s Fund
Plus unallocated premium.
Plus PolicyAdministration charge deducted
Less charges @ Rs.0.20per thousand Sum Assured under Basic plan
Less Actual cost of medical examination and special reports, if any.
- No loan will be available under this plan.
- Assignment will be allowed under this plan.
In case the Life Assured commits suicide at any time within one year, the Corporation will not entertain any claim by virtue of the policy except to the extent of the Policyholder’s Fund Value on death.