LIC's SIIP : Table No. 852
Regular Premium | Non-Participating | Unit Linked Assurance Plan | insurance-cum-investment | Guaranteed Addition
LIC’s SIIP?
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. As per the latest updates the returns are around 15% in LIC’s SIIP. One can check it latest NAV’s by visiting LIC OF INDIA official site www.licindia.in
1. Eligibility Conditions :
| Conditions | Minimum | Maximum |
| Age entry | 90 Days | 65Yrs(Lbd) |
| Term | 10Yrs | 25Yrs |
| Maturity Age | 18Yrs | 85Yrs |
| Sum Assured | 7 times of annual premium for aged above 55yrs | 10 times of annual premium for aged less than 55yrs |
| Premium Paying term options | Yearly: Rs 40,000 Half Yearly: Rs 22,000 Qly: Rs 12000 Mly(Nach/E-Nach): Rs 4000 | No Limit |
2.Maturity Benefit: Fund Value + Refund of Mortality Charges (Excluding any extra premium and Taxes on Mortality Charges)
| Policy Year | % of Unit Fund |
| 6th to 10th | 20% |
| 11th to 15th | 25% |
| 16th to 20th | 30% |
| 21st to 25th | 35% |
3.Policy Loan: Not Available
4. Surrender/Paid up : Allowed After 5 years
5. 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.
6. Death Benefit :
Before Commencement of Risk: Fund Value
After the Commencement of Risk : Basic SA or 105% of Total Premiums Paid (less any Partial Withdrawals made during last 2 years) or Fund Value whichever is higher.
Basic SA = 10 times of annualized Premium for Age below 55 years and 7 times of Annualized premium for Age 55 years and above.
7. 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
8. Suicide Clause: Within 12 months of DOC or Revival claim will be restricted to Fund Value
9. Available Riders: LIC’s Linked Accident Benefit Rider. Maximum 1 Crore under all plans.
10. Grace Period: 15 days for monthly mode and 30 days for other modes.
11. Revivals: Within 3 years of FUP
12.Back Dating: Not Allowed.
13. Tax Benefits :
On Basic Premiums: u/s 80C
Maturity/Death claim : u/s 10(10D)
14. Mode of Payment :
Yearly, Half Yearly, Qly or Monthly (ECS/NACH)
15. LIC’s SIIP Illustration : @8% p.a.
16. 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.
17. Fund Options:
Bond Fund, Secured Fund, Balanced Fund & Growth Fund.
18. LIC SIIP Enquiry form:
Why you should invest in LIC’s SIIP?
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. As per the latest updates the returns are around 15% in LIC’s SIIP. One can check it latest NAV’s by visiting LIC OF INDIA official site www.licindia.in
Guaranteed Addition in SIIP:
SIIP 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 year of the policy. The details are as follows:
Refurned of mortality charges at maturity: If a policy holder continue the policy till the end of the term choosen by him, then the mortality charges will be returned at the time of maturity. That is, it is features if the policy holder continue the policy till the maturity, he will not be charges of insurance cover.
19. Other Features:
(1)Allocation Charges: The following allocation charges will be applied to premiums to buy units for the fund type chosen:
| 1st Year | 8% |
| 2nd to 5th Year | 5.5% |
| 6th Year onwards | 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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