A Glance at LIC Market Plus Growth Fund

Author: Yash Sharma

Life Insurance Corporation of India, with its headquarters in Mumbai, is one among the county’s biggest insurance companies. Among the many products provided by LIC are insurance plans, micro insurance plans, retirement plans, health plan, group plans and unit plans.

Unit linked insurance plans are the ones that combine both the investment needs as well as the insurance requirements of the customer. In this scheme, a part of the premium paid by the policyholder is used as an insurance cover and the other part is employed in different kinds of market investments.

The LIC Market Plus Fund adheres to the Insurance Regulatory and Development Authority (IRDA) rules and standards.

LIC Market Plus Review- An Overview of the LIC Market Plus Growth Fund Plan

The Market Plus Growth Fund by LIC is available with the life cover or without it.

Criteria

Minimum

Maximum

Entry Age

18

65 (with life cover)-70 (without life cover)

Age at Vesting

40 years

75 years

Deferment period

5 years

N/A

Premium amount

Rs 5,000/ p.a (for regular premium)

Rs 10,000/ for single premium

No limit

Sum assured (Only for policies with life cover)

Rs 25,000/- (for single premium policies)

Rs 50,000/- (for regular premium policies)

20 times of the annual premium (for regular premium policies) or

Equal amount of the single premium

Mode of Payment

Single premium/ Quarterly/ Half-yearly/Annual

Why buy LIC Market Plus Growth Fund

The LIC Market Plus plan is a unit linked plan that provides insurance cover and investment options. Despite serving as a pension scheme to take care of the financial needs during the retired days, it also provides insurance cover.

LIC Market Plus Review- The prime features of LIC Market Plus Growth Fund Plan

  • LIC Market Plus plan is a unit linked plan with the Growth fund investment option which is one among the four
types of tax saving investments fund options available. (The others are balanced fund, bond fund, and secured fund).

  • In a Growth fund, the objective is long-term growth. The investment portfolio is as such:

(i) 20% of your premium amount is invested in government securities

(ii) Less than 40% is invested in short-term market units

(iii) Around 40% to 80% will be invested in public equity shares

  • The Net Asset Value is calculated every day. However, for the first month, it is fixed at 10 Rupees per unit.
  • The policy has a three-year lock-in period.
  • The policy lacks the option of a critical illness rider, but accident rider and life cover riders are available (in the policy with life cover only).
  • A premium allocation charge will be recovered in the first year of the policy
  • There is no rebate on the sum assured
  • This policy provides an option to purchase pension or annuity plan from any other insurance company at the vesting date
  • There is an option to top up with no upper limit, anytime during the policy.

Benefits of LIC Market Plus Growth Fund Plan

  • Maturity Benefit: During vesting, one-third of the policy value will be paid as a lump sum to the policyholder. The rest of the policy value will be used to purchase the annuity. The customer has to inform the Corporation about his choice of annuity and change of pension plans to another company if desired, six months before the vesting date.
  • Death Benefit: On the incident of death of the policyholder within the deferment period of the policy, the nominee will receive the sum assured along with the fund value of units the policyholder-owned (for a policy with life cover). In the case of a policy without life cover, the nominee will receive the fund value of units the policyholder-owned. The fund value will be either paid as a lump sum or as a pension fund.
  • Accident Benefit: This benefit is available only if the accident rider is purchased with the policy. This rider is available only on a policy with life cover.

LIC Market Plus Review –Inclusions in the plan

  • Mortality Charges: For a policy with life cover, there will be a morality charge that will be deducted every month from the units owned by the policyholder.
  • Policy Administration: There is a charge of policy administration which is at Rs 60/- per month for the first year and Rs 20/- per month for the rest of the policy term
  • Charges on Service Tax: The plan with life cover is service tax chargeable. Service tax charges will be deducted on riders if any.
  • Compulsory surrender is included in the plan

Exclusions

  • A loan cannot be availed on LIC Market Plus Plan.
  • Assignment is not allowed under this plan

Documents Required

To purchase a policy, the prospective policyholder should submit the application forms along with KYC documents and Age proof, address proof and identity proof

Claim Process

The nominee should submit the claim form along with his/her KYC documents, certificate from the death register along with the policy document and Deed of Assignment.