The Hindu Business Line : New ULIPs from LIC

LIC has launched two unit linked insurance plans - Profit Plus and Fortune Plus. Both are unit linked endowment plans, which combine insurance with market related returns.

Under Profit Plus, the premium can be paid in one instalment or instalments paid over three to five years. The plan has four fund options-Bond, Secured, Balanced and Growth. Optional riders like Critical illness benefit and accident benefit are also a vailable. The minimum single premium is Rs 20,000 and Rs 10,000 per annum for limited premium paying term policies. Persons up to the age of 65 can avail of the policy.

Under Fortune Plus, the premium payment is limited to 5 years and the premium payable in the first year is four times the premium payable in subsequent years. The plan is available to persons in the age group of 12 to 60 years. The minimum premium payable is Rs 20,000 for the first year.

Under both plans, policyholders have the option to switch over from one fund to another fund. Within a given policy year, four switches will be allowed free of charge. Partial withdrawals are allowed after the third year of the policy being in effect. On maturity, an amount equal to the policyholder’s fund value is payable. As death benefit, the policyholder’s fund value or the sum assured, whichever is higher, will be payable. –

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