Jul 05, 2006, 05.15 PM | Source: Moneycontrol.com
LIC launches market plus (Plan .No. 181) - a Unit Linked Pension Plan.
LIC launches its Unit Linked Pension plan — Market Plus, which combines investment and pension benefit with option of insurance cover during the term of the Policy.
The plan is available to individuals between 18 to 70 years of age. The minimum premium is Rs.5000 p.a. under regular modes and Rs.10000/- under single premium. There is however no upper limit as maximum premium is dependent upon the financial standing of the proposer. The minimum period after which the pension starts is 5 years from date of commencement of policy or 40 years of age of proposer whichever is later.
The premium paid by the policy holder after deduction of administrative charges, fund management charges, risk premium and premium for accident benefit , if opted for, will be invested in the fund type chosen by the policy holder and he has four options to choose from i.e. Bond Fund, Secured Fund, Balance Fund and Growth Fund. Maximum investment in equity is 35% in secured fund, 50% in balance fund and 80% in growth fund. The people who want to enjoy the benefits of capital market appreciation are the target group as they can select a plan according to their risk appetite.
The initial NAV will be Rs.10/- for a period of 1 month from the date of launch. There is no 'bid offer' spread i.e. the sale and purchase price of the units will be the same as the NAV declared on day to day basis. There will be option to switch over from one fund to another fund and such four switches during any policy year will be free of charge.
Unique selling points of the plan are the choice of level of cover which is equal to single premium or up to 20 times of annualized premium in case of Yly/ Hly / Qly mode, Top up (additional premium) facility is also available. Fund accumulated during the premium paying term is utilized for payment of pension. Option of commutation of 1/3rd pension is available. The annuity rates prevailing under relevant annuity option on date of vesting will be applicable.
Sourced From : RKSWAMY BBDO