LIC SIIP Plan (Plan no. 852) 2024

Over the years, investors' hard-earned savings have grown into a sizeable corpus that they can use to finance important life events.

LIC SIIP- Plan Overview

LIC SIIP can provide the insured's family comprehensive financial coverage against any eventuality. Further, the long-term investment returns from LIC SIIP let individuals grow their wealth and create a financial cushion for a secure future. However, the plan cannot be bought now as it has been withdrawn, but those who already have it can continue to enjoy its benefits.

Features of LIC’s SIIP Plan

Let’s look at some of the salient features of the policy.

• LIC SIIP offers 4 fund options to choose from.

• The policyholder can make free switches between funds.

• The plan offers the option of add-on rider benefits to enhance the policy coverage.

• Tax benefits can be availed U/S 80C and 10(10D) of the Income Tax Act.

• Partial withdrawals of funds are applicable under the policy.

Eligibility Criteria of LIC SIIP

The following are the eligibility criteria for LIC’s SIIP plan.

Benefits of LIC SIIP (Systematic Investment Insurance Plan)

1. Death Benefit

   If the life assured dies before the risk commences, the beneficiary of the LIC policy will receive an amount equal to the unit fund value.

   On death, after the risk commences, the highest of the following death benefit is payable:

   • Unit fund value; or

   • 105% of the total premium paid till the date of death reduced by partial withdrawals, if any; or

   • The basic sum assured amount on death is reduced by partial withdrawal, if any.

   The beneficiary can avail the death benefit as a lump sum or in installments. 

2. Maturity Benefit

   Suppose the life assured survives the maturity date & provided all the due premiums are paid. In that case, the unit fund value along with the refund of mortality charges is payable by the insurer.

3. Guaranteed Additions  

   Guaranteed additions as a percentage of one yearly premium are added to the fund value on completing the following years of the policy. This is on the condition that all the due premiums are paid.

   End of the Policy year	Guaranteed Additions (% of one yearly premium)
   6	5%
   10	10%
   15	15%
   20	20%
   25	25%

Optional Benefits Offered by LIC SIIP

1. Rider Benefits

   The plan offers an accidental death benefit rider option. Under this rider option, the accidental benefit sum assured is payable to the beneficiary if the insured person dies an unfortunate death due to an accident. The benefit offered under this policy shall be available till the maturity date or till the policy anniversary on which the age of the life assured is 70 years, whichever is earlier. Similarly, the rider benefit is also available in Term Insurance plans

2. Partial Withdrawals

   The policyholder can avail the facility of partial withdrawal of the units at any time after completing 5 years of the policy, provided all the premiums are dully paid. Some conditions are:

   • In the case of a minor- Partial withdrawals are applicable only after the life assured is age 18 years or above.

   • The withdrawals can be made in a fixed amount or in a fixed number of units.

   • The maximum sum of partial withdrawal during each policy year can be as follows:

   Policy Year	%of Unit Fund
   6th to 10th	20%
   11th to 15th	25%
   16th to 20th	30%
   21st to 25th	35%

Investments of Funds

Unit Fund- The premium paid towards the policy is utilized to buy units as per the type of funds the policyholder chooses. LIC’s SIIP offers 4 different fund options to choose from. Here is a look at these fund options and their investment pattern.

Charges Applicable Under the LIC’s SIIP Plan

Let’s take a look at the charges applicable under the LIC’s SIIP Plan.

1. Premium Allocation Charge

   Premium allocation charge constitutes the part of the premium which is used to buy units for the policy.

   The following are the premium allocation charges.

   Premiums	Offline Sale	Online Sale
   1st year	8.00%	3%
   2nd – 5th year	5.50%	2%
   6th year and thereafter	3.00%	1%

2. Mortality Charges

   Mortality charge is the cost of the life insurance cover. It is age-specific and is charged at the beginning of each policy month by canceling the appropriate number of units out of the unit fund value. The mortality charge depends on the sum at risk during the policy tenure.

   

3. Accidental Benefit Charges

   Accidental benefit charge applies to the accidental death benefit rider, if opted. This charge is deducted at the start of each month by canceling the appropriate number of units out of the unit fund while the policy is in force.  The accidental benefit charge is applicable at the rate of Rs.0.40 per thousand.

4. Fund Management Charge

   This charge is applicable as a percentage of the asset's value and is appropriated by adjusting the net asset value fund management charges. It is imposed at the time of calculating net asset value (NAV), which is done daily.

5. Switching Charges

   Under LIC’s SIIP plan, the policyholder can switch funds up to four times in a financial year. Subsequent switches in that year are subject to switching charges of Rs.100.

6. Partial Withdrawal Charge

   At the time of partial withdrawal, Rs. 100 is deducted from the unit fund as a partial withdrawal charge.

Other Details of LIC’s SIIP Plan

1. Free-look Period

   The insurer offers a 15-day free-look period for offline purchases and 30 days for online purchases. During this period, the insurance holder can cancel the policy if he/she is unsatisfied with its terms and conditions.

2. Grace Period

   A grace period of 30 days is offered to pay the unpaid premium.

What is Not Covered Under LIC SIIP?

In case the policyholder commits suicide within 12 months from the date of policy initiation or the date of revival of the policy - the beneficiary of the policy will receive the unit fund value available as on the date of death along by submitting the death certificate.

LIC Resources

FAQs