LIC's Nivesh Plus : Table No. 849
Single Premium | Non-Participating | Unit Linked Assurance Plan | insurance-cum-investment | Guaranteed Addition
LIC’s Nivesh Plus?
The rate of interest in banks are around 5-6.5% and inflation is also 5-6%. It means if someone is keeping his money in the bank then net addition due to interest is nullify due to inflation. So to beat the inflation, one need to invest in stock market to get good returns. LIC Nivesh plus is alternative to bank FD to get good returns. It is a single premium investment plan which offeres handsome returns. This is a Single Premium, Non-Participating, Unit Linked Assurance Plan, which offers insurance-cum-investment. Proposer can choose the amount of premium one desires to pay. Each premium paid shall be subject to allocation charges. Upon completion of specified duration, Guaranteed additions as a percentage of Single Premium shall be added to the unit fund under in force policy.
Options: There are two options in LIC Nivesh Plus. Option 1 which offer risk cover 1.25 times of the single premium and Option 2 offers risk cover 10times of the single premium. So Option 1 is one where the customer want lesser risk cover and Option 2 where the customer want high risk cover. Note that: The returns in Option 2 are also tax free under section 10. 10(D).
1. Eligibility Conditions :
| Conditions | Minimum | Maximum |
| Age entry | 90 Days | Option 1: 70yrs Option 2: 35Yrs |
| Term | 10Yrs | Option 1 : 25yrs |
| Maturity Age | 18Yrs | Option 1: 85Yrs Option 2: 50Yrs |
| Sum Assured | Option 1: 1.25 times of Single Premium | Option 2: 10 times of Single Premium |
| Premium Paying term options | Rs 1,00,000 | No Limit |
2.Maturity Benefit: Fund Value + Refund of Mortality Charges (Excluding any extra premium and Taxes on Mortality Charges)
3. Partial Withdrawals:
Allowed after 5 years from DOC, subject to following conditions:
• Allowed to minors after completion of age 18.
• Partial withdrawal may be in form of fixed amount or fixed number of units.
• For 2 years from date of partial withdrawal the Basic SA or Paid up SA, shall be reduced to that extent.
• Maximum Amount of Partial Withdrawal will be as under:
| Policy Year | % of Unit Fund |
| 6th to 10th | 20% |
| 11th to 15th | 25% |
| 16th to 20th | 30% |
| 21st to 25th | 35% |
4.Policy Loan: Not Available
5. Surrender/Paid up : Allowed After 5 years
6. Compulsory Termination: If after payment of premium for full 5 years further Premiums are not Paid and balance in Unit Fund is not sufficient to recover the relevant charges, the policy will be compulsory terminated.
7. Death Benefit :
Before Commencement of Risk: Fund Value
After the Commencement of Risk : Basic SA opted (less any Partial Withdrawals made during last 2 years) or Fund Value whichever is higher.
8. DATE OF COMMENCEMENT OF RISK:
For age at entry less than 8 years LBD : One day before completion of 2 years from DOC or one day before Policy Anniversary after completion of age of 8 years LBD, whichever is earlier
For age at entry 8 years LBD or more: Risk will commence immediately
9. Suicide Clause: Within 12 months of DOC or Revival claim will be restricted to Fund Value
10. Available Riders: LIC’s Linked Accident Benefit Rider.
11.Back Dating: Not Allowed.
12. Tax Benefits :
On Basic Premiums: u/s 80C
Maturity- Option 1 : Taxable
Option 2 : Tax free u/s 10(10D)
Death claim both Opions: Tax Free
13. Mode of Payment : Single Only
14. LIC’s Nivesh Plus Illustration : @8% p.a.
15. Special Options:
1. Switching between any fund types.
2. Death Benefit in instalments for 5 years.
3. Partial Withdrawal from 6th year.
4. Increase/Decrease in Benefits not allowed
5. Accident Rider can be cancelled.
6. Top Up not allowed.
7. Alteration to other Plan not allowed.
16. Fund Options:
Bond Fund, Secured Fund, Balanced Fund & Growth Fund.
17. LIC Nivesh Plus Enquiry form:
Guaranteed Addition in LIC Nivesh Plus:
Nivesh Plus is maket linked product of LIC. This is only plan in entire life insurance industry which provides guaranteed addition in market linked plan. The guaranteed addition comes in the 5th, 10th, 15th, 20th & 25th year of the policy. The details are as follows:
| 1st Year | 3.3% |
Mortality Charges: Life cover charges will be taken at the beginning of each policy month from fund value. The monthly charges will be one twelfth of annual mortality charges. It will be charged only on difference between Basic SA/Paid up SA and fund
value of units as on date of deduction. If fund value is more than no charges will be deducted. Mortality charges will be
as per age nearer birthday of policyholder on the policy anniversary. Same will increase every year.
Linked Accident Benefit Charges: Will be deducted at beginning of each policy month by cancelling appropriate number of units. Charges 0.40 per 1000 S.A. For Life assured in any police organization other than paramilitary forces and opts for this cover while on duty charges will be 0.80 per 1000 S.A.
Other Charges:
a). Policy Administration charges: Not Applicable.
b). Switching Charges: During one policy year 4 switches are free, thereafter Rs-100 per switch will be charged.
c). Fund Management Charges ( FMC): Will be charged at the time of computation of NAV on daily basis. NAV declared will be net of FMC.
• 1.35% p.a. of Unit Fund under in force policy for all four types of fund.
• 0.50% p.a. of Unit Fund for Discontinued Policy Fund.
d). Bid/Offer Spread: Nil
e). Partial Withdrawal Charge: Flat amount of 100 will be deducted from fund value.
f). Miscellaneous Charges:
For alterations e.g. change in premium mode, Grant of Accident Rider etc. Rs-100/- per alteration will be charged by cancelling appropriate no of units.
g). Tax Charges: Tax will be charged on all applicable charges as per prevailing Tax laws. Current rate is @18%.
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