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Life Insurance of India (LIC) has launched the New Endowment Plus, its maiden unit-linked assurance plan (ULIP) after new product regulations were issued in February 2013.
It offers investment-cum-insurance opportunity providing for dual benefits of risk cover and gains from investment markets during the term of the policy.
Popular demandThe ULIP plan will be good opportunity to reap the benefits of the capital market, according to Shaji M Shankar, Senior Divisional Manager, LIC, Thiruvananthapuram.
The product has been brought back with added features on popular demand, he added.
Policyholders will have the option of to choose from any of the four funds on offer here i.e. Bond Fund, Secured Fund, Balance Fund and Growth Fund.
The option can be exercised depending on individual risk appetite with the added convenience of switching between these funds. Within a given policy year, four switches will be allowed free of charge.
NAV computationThe net asset value (NAV) of all segregated funds will be computed on a daily basis and will be based on the investment performance and fund management charge of each fund type.
On Wednesday, the day of launch, the NAV under all funds was fixed at ₹10, the spokesman said. The plan is intended to suit infants of as little as 90-days-old to adults of up to 50 years of age with a choice of policy term of 10 to 20 years.
Premium payment modes are regular – yearly, half-yearly, quarterly or monthly – but payable through the electronic clearing service (ECS) mode only.
On the life assured surviving the stipulated date of maturity, an amount equal to the policyholder’s fund value is payable.
Maturity benefitThe maturity benefit can be payable either as a lumpsum amount or in equal instalments if the settlement option is opted for.
On death before the date of commencement of risk, an amount equal to the policyholder’s fund value shall be payable.
On death after the date of commencement of risk, an amount equal to the higher of basic sum assured of policyholder’s fund value shall be payable – where basic sum assured is (10 annualised premiums) or (105 per cent of the total premiums paid), whichever is higher.
The plan comes with an accident death benefit rider which provides for an additional amount equal to the accident benefit sum assured on death due to accident. An option for partial withdrawal is also available.
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