LIC SIIP is one such scheme of Life Insurance Corporation in which you get the benefit of both life insurance and investment. If the policyholder is alive, then on maturity of the policy, he also gets the money which was deposited as premium for life insurance.
Monthly minimum premium is Rs 4000.
SIIP LIC: Life Insurance Corporation runs hundreds of schemes for its customers. There are two types of benefits in the scheme that you will know about today. This is a ULIP plan which also acts as life insurance for you and also gives returns like investment on maturity. When you invest in this scheme, your money is deposited in Debt Fund, Equity Fund and Balance Fund i.e. Hybrid Fund under investment.
The name of this policy of LIC is LIC SIIP whose table number is 852. In this, some part of your premium is deposited in the form of life insurance and the remaining part is deposited under investment. Under investment, LIC gives you the opportunity to choose where you want to invest your money. Four options are given for this. Talking about LIC SIIP eligibility, the minimum age is 90 days. The maximum entry age is 65 years. The minimum policy term is 10 years and the maximum policy term is 25 years. The minimum maturity age is 18 years and the maximum maturity age is 85 years.
The minimum premium limit for this scheme is fixed. Apart from this, the premium is also different for different modes. On depositing monthly premium, the minimum amount will be Rs 4000, on quarterly deposit Rs 12 thousand, for half yearly deposit 22 thousand and on annual deposit Rs 40 will have to be deposited.
70 lakh rupees will be available after 25 years
An illustration of benefits is given in the sales browser of LIC. According to this graph, suppose A’s age is 30 years and he buys a policy of 25 years for himself. Every quarter he deposits 30 thousand rupees i.e. 1.20 lakh rupees in a year. The investment fund he has chosen for himself, if it gives an annual return of 4 percent, then he will get Rs 4004293 as maturity. If that fund gives a return of 8 percent on an annual basis, then you will get Rs 6917669. In 25 years, he will deposit a total of 30 lakh rupees.
How is risk covered?
If you take this policy in the name of your child, then there is risk coverage based on his age. If your child is above 8 years of age, the risk coverage starts as soon as you take the policy. If his age is less than 8 years then risk coverage will start till the completion of 8 years or till the completion of two policy years, whichever is earlier.
Basic Sum Assured
Basic Sum Assured is calculated based on the age of the policyholder. If the age of the policyholder is less than 55 years, the Basic Sum Assured will be ten times the annual premium. For example, ‘A’ buys this policy for himself and his annual premium is 40000 thousand rupees, which is the minimum, then the basic sum assured for ‘A’ will be 4 lakh rupees. If the age of ‘A’ is 55 years or more then the Basic Sum Assured will be 7 times i.e. Rs 2.8 lakh.
Guarantee Addition from LIC
As we told you earlier, this is a ULIP plan in which your money is also invested like a mutual fund. The special thing about this policy is that in addition to the return you get on investment, you are also given a guaranteed return by LIC. Under this, 5 percent of your annual premium will be added after 5 years of the policy. Similarly, 10 percent of the premium deposited on completion of 10 years, 15 percent on completion of 15 years, 20 percent on completion of 20 years and 25 percent on completion of 25 years gets added.
Death and Maturity Benefit
If the policyholder dies, LIC pays the Basic Sum Assured or the higher of the Fund Value, whichever is higher. If the policyholder survives till the maturity of the policy, then he also gets back the money which has been deposited for life insurance from his premium. Apart from this, the benefit of deduction under 80C is available on payment of premium. The death benefit is completely tax free under section 10(10D). Maturity is taxable. Partial withdrawal facility is also given after 5 years.
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