LIC Index Plus

Here are some of the key features and benefits payable under the policy:

Maturity Benefits:

In case the policyholders survive the maturity date and they have paid all the required premiums on time, they will be eligible to get an amount equal to ‘Unit Fund Value’. This amount can serve as a financial safety net and can be used for various financial purposes in life, be it funding a child’s education or collecting money for retirement.

Death Benefits:

In case the policyholders die before the stipulated date of maturity, they will be entitled to receive death benefits. They are as follows:

• If death occurs before the date of commencement of risk: Death benefit will be equal to the ‘Unit Fund Value’.

• If death occurs after the date of commencement of risk: Death benefit will be equal to the highest of the following:

• • Basic sum assured

• • 105% of the total premiums received

• • Unit fund value

This lump sum payment can help cover immediate expenses and help the family members in covering their day-to-day expenses.

Refund Of Mortality Charges:

If policyholders live past the maturity date of the LIC Index Plus policy, and have paid all the required premiums, they will receive an amount equal to mortality charges deducted for the life insurance coverage. This payout will exclude any extra charges from underwriting decisions or taxes on these charges. However, if the policy is discontinued or surrendered, there won’t be a refund of the mortality charges.

Guaranteed Additions:

Guaranteed additions are extra amounts of money that LIC promises to add to the policyholders’ policy at specific intervals. Under the Index Plus policy, LIC gives these additions as a percentage of the premiums paid by the policyholders. These additions are a good way to receive additional benefits and increase the value of policy over time. To know about how much percentage of guaranteed additions are offered by the plan, kindly refer to its sales brochure.

2 Fund Options:

The plan also offers two fund options of very high risk. Their details are as follows:

• Flexi Smart Growth Fund

• SFIN No.: ULIF00610/11/23LICULIPFSG512

• Investment in listed equity shares: 40% to 100%

• Short-term investments such as market money instruments: 0% to 40%

• Investment in government/Government-guaranteed securities/Corporate debt: 0% to 20%

• Flexi Growth Fund

• SFIN No.: ULIF00510/11/23LICULIPFLX512

• Investment in listed equity shares: 40% to 100%

• Short-term investments such as market money instruments: 0% to 40%

• Investment in government/Government-guaranteed securities/Corporate debt: 0% to 20%

Rider Benefits:

Policyholders can add optional rider of ‘Accidental Death Benefit Rider’ on any policy anniversary after it’s been active for 5 years but before they turn 65. This extra coverage lasts until the policy matures or until policyholders turn 70, whichever comes first, as long as their policy is still active when an accident happens. This rider offers policyholders a one-time payment known as ‘Accident Benefit Sum Assured’ in case there is an accidental death.

Option Of Partial Withdrawals:

After 5 years from the start of the policy, policyholders are allowed to withdraw some of their units. Here are the rules:

• Minors can only withdraw once they turn 18.
• One can choose to take out a set amount or a specific number of units.
• The maximum one can withdraw each year is a certain percentage of their fund, as mentioned in the policy brochure, ‘Section 4, Part-II’.