LIC Wealth Plus Plan 2024 Benefits, Feature, Details, Reviews

You should be aware of the following important aspects of LIC’s Money Plus Plan:

• You can pay one lump sum or regular monthly premiums for the policy;
• the plan covers four different investment funds.
• These are the Bond Fund, the Secured Fund, the Balanced Fund, and the Growth Fund.
• The policy has optional riders that help you get better coverage.
• You can freely withdraw from your fund’s value and there are no fees for partial withdrawals.

Policyholders of LIC’s Money Plus Plan receive the following benefits:

Maturity benefit

The policyholder receives the available Fund Value when the plan’s term expires. You can use the fund’s value in one payment or over time. The plan’s settlement option allows for periodic payments of the fund’s value. The maturity benefit is distributed equally over five years following maturity under this feature.

Death benefit

Risk coverage would begin for insureds under the age of 10 after two years of the policy, or on the policy anniversary following the insured’s seventh birthday, whichever comes first. Risk coverage would begin on the policy anniversary following the insured’s 12th birthday if the insured is over the age of 10 but under the age of 12. The insured’s remaining fund value would be reimbursed in the event of their death while the risk cover was in effect. Alternately, the insured’s death benefit would be the greater of the sum assured or the fund value if the insured was over the age of 12 and died during the policy term.

Surrender value

After the first three policy years have passed, you can surrender the policy and receive the surrender value at any time. You would not receive the surrender value until after three years if you surrendered the plan before the end of the three policy years. The applicable fund value on the date of surrender would be the surrender value. You wouldn’t be charged any extra expense for giving up the arrangement.

Partial withdrawals

Partially withdrawing money from this unit-linked insurance plan gives you access to liquidity. After the first three policy years have passed, the plan allows partial withdrawals. As long as you keep a minimum balance in the fund’s value, you can withdraw any amount in part. The minimum balance in the fund value that needs to be maintained if you pay regular premiums is two times the annual premium. The minimum fund value balance for single-premium plans should be at least INR 5000.

Switching

It involves switching investment funds. Any four of the available funds can have their entire value switched between them. Four switching’s are permitted liberated from cost each approach year. There will be a charge of INR 100 per switch for additional switches.

Policy continuity benefit

The policy would continue even if you haven’t paid the remaining premiums for at least the first three policy years. The plan would cover all benefits of the coverage. If you want, you can withdraw money from the policy in small amounts. The fund’s value, which would continue to rise in line with the market, would be deducted from the applicable charges. However, the policy would be terminated and the available fund value would be paid if the fund value fell below one annualized premium.

However, the life insurance cover and rider cover would not apply if the first three years’ premiums are not paid. Your asset worth would remain contributed and suitable charges would be deducted from it. The policy would be canceled and the fund value would be paid out if it fell below one annual premium.

Revival

The policy expires if the premiums are not paid in full. A policy that has expired can be reinstated within two years of the first unpaid premium. The insurance company would reinstate your policy if you paid the outstanding premiums, provided evidence of good health, and provided proof of payment.

Two optional riders are available with the LIC Money Plus Plan. You can pay an additional premium to select one or both riders. The following are the riders and their coverage:

Accident Benefit Rider

In the event of an accident-related death, you would receive an additional sum assured if you select this rider. The rider can be purchased for as little as INR 25,000 and as much as INR 50 lakhs. If you are over the age of 18, you can select the rider.

Critical Illness Benefit Rider

Certain critical illnesses are covered by this rider. Under the rider, you would receive a lump sum benefit if you were diagnosed with any of the illnesses that are covered. If you are between the ages of 18 and 50 and the term of the plan you have chosen is 10 years or longer, you can take advantage of the Critical Illness Benefit Rider. The accessible inclusion cutoff of the rider would be between INR 5000 and INR 5 lakhs.

Eligibility conditions of LIC’s Money Plus Plan

The policy imposes the following costs:

Premium allocation charge

This fee is deducted from the plan’s invested premium. The method of premium payment you choose determines the cost. It goes as follows:

For single premium plans

For regular premium plans

Risk cover charges

Depending on your age and the plan’s coverage, a mortality charge is deducted from the fund’s value. The additional cost for the coverage provided by the selected riders would be deducted if you select the available riders.

Policy administration charge

Policy administration charges are costs associated with administering the policy. These charges are charged @ INR 60 in the main month of the arrangement and INR 20/month from that point. The company would be limited to charging INR 150 for the first month and INR 50 per month for the next two months.

Fund management charge

Professional fund managers who are compensated for their work manage the funds. As a result, the policy imposes fund management costs based on the chosen fund. The following are the charges:

Miscellaneous charge

Professional fund managers who are compensated for their work manage the funds. As a result, the policy imposes fund management costs based on the chosen fund. The following are the charges:

How does LIC’s Money Plus Plan work?

Let’s say you want to buy a policy with a regular premium for 10,000 INR. You select a term of twenty years because you are 35 years old. 2 lakhs Indian Rupees are guaranteed. The money is put into the Secured Fund by you. The fund values at various intervals would then be as follows if expected returns are 6% and 10%.

The policy’s maturity benefit would also be the fund’s value at the end of the 20th policy year. Because the sum assured is greater than the fund value, the death benefit at the conclusion of the fifth and tenth policy years would be INR 2 lakhs. However, the death benefit would be the fund value as soon as it exceeds the sum assured.

LIC’s Cash In addition to Plan has been removed by LIC. Therefore, you cannot purchase a new policy. However, you can purchase additional unit-linked insurance plans from the market. You would only need to provide your information in order to receive recommendations for the best other unit-linked insurance plans. You can think about the accessible plans, pick one, top off a web-based application structure and pay the charges on the web and you would have the option to purchase the best unit-connected plan through without any problem.

Also Check-LIC New Endowment Plan 

Fill out a claim discharge form and send it to LIC along with your identity document, policy bond, and bank information to claim the maturity of the plan. The claim would be processed, and the maturity proceeds would be credited to your bank account.

For a demise guarantee, you ought to top off Structure 3783 and submit it to LIC with the passing declaration of the safeguarded. If an accident caused a death, medical and police reports may also be required. The claim would be evaluated, the documents checked, and the money paid to the insured’s nominee or legal heirs.

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