LIC SIIP Plan Life Insurance

For individuals who want to grow their money while ensuring financial security, LIC's Systematic Investment Insurance Plan (SIIP) is an excellent choice. This unit-linked non-participating individual life insurance plan, introduced by Life Insurance Corporation, combines investing with insurance.

The key advantage of LIC SIIP is its flexibility, as you can apply for it both online and offline. The plan offers four different fund options to suit your investment goals. Whether you're starting with a small monthly contribution or a sizeable one, this plan can help your money grow.

In addition to wealth accumulation, LIC SIIP also provides a life cover, giving you added peace of mind. With various benefits and features, this plan is worth considering for your financial future.

Features of LIC SIIP Plan Life Insurance Plan

• Enjoy assured returns on your annual premium, ranging from 5% to 25% on specific policy anniversaries.
• After the policy's fifth year is up, the insured may take partial withdrawals from it at any time. Amounts ranging from 20% to 35% of the Unit Fund can be withdrawn, depending on the policy year.
• Throughout the term of the policy, the policyholder can switch between the four types of funds under the plan.
• Policyholders can choose to receive the death benefit in installments, providing financial security to their loved ones.
• In case of emergencies, you can surrender your policy at any time during its term.
• Revive a lapsed policy within three years from the first unpaid premium to the maturity date.
• If you're not happy with the plan's features, you have a 15 to 30-day free-look period to cancel the policy.

Eligibility Criteria of LIC SIIP Plan Life Insurance Plan

To be eligible for LIC SIIP, you need to be at least 90 days old but no older than 65 years when you enter the plan. The policy can mature when you're between 18 and 85 years old, and you can choose a tenure from 10 to 25 years. Your annual premium should be a minimum of Rs. 40,000, and there's no maximum limit. There is a lock-in period of 5 years. The basic sum assured is 10 times the annual premium if you're below 55 years old, and 7 times the annual premium if you're above 55.

Benefits of LIC SIIP Plan Life Insurance Plan

Here are the main benefits of LIC's SIIP:

• Maturity Benefit: If you stay alive until the end of your plan, you'll get a sum of money equal to the amount you've saved up in your plan over time.
• Death Benefit: If, unfortunately, you pass away before the plan's expiry, your family will receive a payment. The amount depends on certain factors, such as the money you've saved and any withdrawals you've made.
• Refund of Mortality Charges: If you live until the plan's expiry, you'll get back the money you paid for life insurance, as long as you've paid all your premiums. But you won't get this if you cancel your plan early.
• Optional Riders: You can add extra features to your plan, like accidental coverage, which pays out a lump sum if you have an accident.
• Investment Options: You can choose from four different ways to invest your money. You pick the one that suits you best.

Exclusions of LIC SIIP Life Insurance Plan

If the policyholder commits suicide within the first year of starting the plan, the beneficiary will receive the fund value as a death benefit. In this case, the plan ends, and no other coverage is provided.

Policy Termination: The policy will terminate under the following circumstances:

• If the option for receiving the death benefit is not chosen when it's due
• When the surrender benefits are paid out
• When the plan reaches its maturity date
• Upon completion of the final payments under a chosen settlement option in case of death
• When the free-look cancellation amount is paid
• Compulsory termination
• If the policy is discontinued
• In the event of forfeiture

How to Download LIC SIIP Policy Document?

The steps to download the LIC SIIP policy document are as follows:

Step 1: Go to the official LIC India website.

Step 2: Click on the ‘Policy Document’ option.

Step 3: Once the document opens, you can easily download it.

Fees Associated with LIC's SIIP

• Premium Allocation Charge: This fee is deducted from the premium you pay, and the remaining amount is used to buy units in your plan.
• Mortality Charge: This is the cost of your life insurance coverage, and it depends on the amount of coverage you have.
• Accident Benefit Charge: This charge is deducted at the start of each month by taking away a specific number of units from your Unit Fund.
• Other Charges: There are some other additional fees that involve Fund Management Charges, Partial Withdrawal Charges, Switching Charges, Discontinuance Charges, Tax Charge, and Miscellaneous Charge.