LIC's Nivesh Plus
LIC’s Nivesh Plus is a Unit Linked, Non-Participating, Single Premium Individual Life Insurance plan. On payment of single premium, the plan offer, insurance cum investment cover throughout the term of the policy.
You can buy this plan offline (through an intermediary) as well as online. To purchase this plan online, kindly log on to www.licindia.in.
Under this plan you have the flexibility to choose the type of Sum Insured at the inception and also have a choice of investing the premium in one of the four types of investment funds available. Single Premium paid after deduction of Premium Allocation Charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on Net Asset Value (NAV).
1. Benefits:
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Death Benefit:
On death before the Date of Commencement of Risk:
An amount equal to the Unit Fund Value shall be payable.On death after the Date of Commencement of Risk:
An amount equal to the higher of the following shall be payable :Basic Sum Assured less Partial Withdrawals, if any made during the two years period immediately preceding the date of death; or
- Unit Fund Value
Where Basic Sum Assured and Partial Withdrawal are as specified in para 3(V) and para 3(II) respectively.
Mortality charge, Accident Benefit charge, and Tax charges thereon recovered subsequently to the date of death shall be paid back to the nominee or beneficiary along with death benefit.
Any Guaranteed Addition added subsequent to the date of death (in case of delay in intimation of death claim) shall be recovered from the Unit Fund The death benefit shall be paid either in lump sum as specified above or in instalments, if Settlement Option is opted for, as mentioned in Para 3.iv below as per option exercised by the Policyholder/Life Assured.
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Maturity Benefit:
On Life Assured surviving the date of maturity, an amount equal to Unit Fund Value shall be payable.
2. Guaranteed Additions:
Guaranteed Additions as a percentage of Single Premium as mentioned in table below shall be added to the Unit Fund on completion of specific duration of policy years as mentioned below.
| End of Policy Year | Guaranteed Additions (as percent- age of Single Premium) |
|---|---|
| 6 | 3% |
| 10 | 4% |
| 15 | 5% |
| 20 | 6% |
| 25 | 7% |
The allocated Guaranteed Addition shall be converted to units based on NAV of the underlying Fund type as on the date of such addition and shall be credited to the Unit Fund.
However, any Guaranteed Additons added subsequently to the date of death (in case of delay in intimation of death claim) shall be recovered from the Unit Fund.
3. Optional Benefits:
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Rider Benefit:
You have an option of availing LIC’s Linked Accidental Death Benefit Rider.
This rider can be opted for at any policy anniversary provided the outstanding policy term is atleast 5 years but on or before the policy anniversary on which the age nearer birthday of the Life Assured is 65 years.. The benefit cover under this rider shall be available till the Date of Maturity or till the policy anniversary on which the age nearer birthday of the Life Assured is 70 years, whichever is earlier, provided the Policy is inforce as on date of accident. If this rider is opted for, in case of accidental death, the Accident Benefit Sum Assured will be payable in lumpsum along with the death benefit under the base plan. This Rider will not be available under the policy on the life of minor, during minority of the Life Assured.
The Accident Benefit Sum Assured cannot exceed the Basic Sum Assured
For more details on the above Rider, refer to the Rider Brochure or contact LIC’s nearest Branch Office.
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Partial withdrawals:
You can partially withdraw the units at any time after the fifth policy anniversary, subject to the following:
In case of minors, partial withdrawals shall be allowed only after Life Assured is aged 18 years or above.
Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units.
The Maximum amount of Partial Withdrawal as a percentage of fund during each policy year shall be as under:
Policy Year Percent of Unit Fund 6th to 10th 15% 11th to 15th 20% 16th to 20th 25% 21st to 25th 30% The above Partial withdrawal shall be allowed subject to minimum balance equal to the single premium paid.The partial withdrawals which would result in termination of a contract shall not be allowed.
Partial withdrawal charge as specified in Para 7.D. (iii) shall be deducted from the Unit Fund Value.
If partial withdrawal has been made then for two years’ period immediately from the date of withdrawal, the Basic Sum Assured, shall be reduced to the extent of the amount of partial withdrawals made. On completion of two years’ period from the date of withdrawal the original Basic Sum Assured shall be restored.
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Switching:
You have an option to switch between the four fund types during the policy term. On switching the entire Fund Value shall be switched to the new Fund opted for. Switching shall be subject to Switching Charges as specified in Para 7.D.(ii).
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Settlement Option:
This is the option to receive the Death Benefit in instalments. This option can be exercised during the lifetime while in currency of the policy, specifying the mode of instalment and period in years (not more than 5 years). The death claim amount shall then be paid to the nominee as per the option exercised and no alteration whatsoever shall be allowed to be made by the nominee.
The Unit Fund under such policy will continue to be invested as per the fund type existing as on the date of intimation of death The instalment shall be the total number of units as on the date of intimation of death divided by total number of instalments. The number of units arrived at in respect of each instalment will be multiplied by the NAV of the applicable fund type as on the date of instalment payment. The first payment will be made corresponding to the date of intimation of death and thereafter based on the mode opted.
During the Settlement Option period, no charges other than the Fund Management Charge shall be deducted. The value of instalment payable on the date specified shall be subject to investment risk i.e. the NAV may go up or down depending upon the performance of the fund.
On death of the nominee after the commencement of the Settlement Option period, the value of the outstanding units held in the Unit Fund shall become payable to the legal heir in lump sum.
No partial withdrawal or switching of fund shall be allowed by the nominee
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Basic Sum Assured option:
You have the flexibility to choose Basic Sum Assured at the inception. The Sum Assured options are:
Option 1: 1.25 times of Single Premium;
Option 2: 10 times of Single Premium
The option once selected cannot be altered.
4. Eligibility Conditions And Other Restrictions:
| Minimum/Maximum Basic Sum Assured: | Under Option 1: 1.25 times of the single premium |
|---|---|
| Under Option 2: 10 times of the single premium | |
| Minimum Age at entry | : 90 Days (completed) for Option 1 and 2 |
| Maximum Age at entry | : 70 years (nearer birthday) for Option 1 |
| : 35 years (nearer birthday) for Option 2 | |
| Minimum Maturity Age | : 18 years (Completed) |
| Maximum Maturity Age | : 85 years (nearer birthday) for Option 1 |
| : 50 years (nearer birthday) for Option 2 | |
| Premium Paying Mode | : Single Premium only |
| Minimum Premium | : ₹1,00,000 |
| Maximum Premium | : No Limits |
| (Premiums shall be payable in multiple of ₹10,000/-.) | |
| Policy Term | |||
|---|---|---|---|
| Option 1: If Basic sum assured is 1.25 times of single premium | Option 2: If Basic sum assured is 10 times of single premium | ||
| For age at entry upto 25 yrs | For age at entry 26 to 30 yrs | For age at entry 31 to 35 yrs | |
| 10 to 25 years | 10 to 25 years | 10 to 20 years | 10 years |
Date of commencement of risk under the plan:
In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either on the completion of 2 years from the date of commencement of policy or on policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier. In case the age at entry of Life Assured is 8 years or more, risk will commence immediately from the date of underwriting acceptance of risk i.e. date of commencement of policy.
Date of vesting:
If the policy is issued on the life of minor the policy shall automatically vest on the Life Assured on such vesting date i.e. on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such date of vesting be deemed to be a contract between the Corporation and the Life Assured.
5. Investment of Funds:
Unit Fund:
The allocated premiums will be utilized to buy units as per the fund type opted by the Policyholder out of the four fund types options available. Various types of fund options and broadly their investment patterns are as under:
| Fund Type | Bond Fund | Secured Fund | Balanced Fund | Growth Fund |
|---|---|---|---|---|
| Investment in Government/Government Guaranteed Securities/Corporate Debt | Not less than 60% | Not less than 45% & Not more than 85% | Not less than 30% & Not more than 70% | Not less than 20% & Not more than 60% |
| Short-term investments such as money market instruments | Not more than 40% | Not more than 40% | Not more than 40% | Not more than 40% |
| Investment in Listed Equity Shares | Nil | Not less than 15% & Not more than 55% | Not less than 30% & Not more than 70% | Not less than 40% & Not more than 80% |
| Objective | To provide relatively safe and less volatile investment option mainly through accumulation of income through investment in fixed income securities. | To provide steady income through investment in bothequities and fixed income securities | To provide balanced income and growth through similar proportion investment in both equities and fixed income securities. | To provide long term capital growth through investment primarily in equities. |
| Risk Profile | Low risk | Lower to Medium risk | Medium risk | High risk |
| SFIN | ULIF00124/12/18LICULIPBND512 | ULIF00224/12/18LICULIPSEC512 | ULIF00324/12/18LICULIPBAL512 | ULIF00424/12/18LICULIPGRW512 |
The Policyholder has the option to choose any ONE of the above 4 funds.
Discontinued Policy Fund (SFIN: ULIF001201114LICDPFNLIF512):
vestment pattern of the Discontinued Policy Fund shall be a unit fund with the following asset categories:
- Money market instruments: 0% to 40%
- Government securities: 60% to 100%
6. Method of Calculation of Unit price:
Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will be equal to the NAV). The NAV will be com puted on daily basis and will be based on investment performance and Fund Management Charge of each type of fund and shall be computed as:
Applicability of Net Asset Value (NAV):
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The allocation and redemption of units for various transaction will be at the NAV as described below:
Type of Transaction Applicable NAV (Where transaction is received before cut off Time) Single Premium received: - In case of Offline sale: by way of a local cheque or a demand draft payable at par at the place where premium is received.
- In case of Online sale: by any digital payment mode
NAV of Date of underwriting acceptance of risk i.e. Date of commencement of policy. Partial withdrawal, Switching between available Fund types, or Free-look cancellation NAV of the date of our receipt of the request in writing. Surrender NAV of the date of our receipt of surrender request in writing Death claim NAV of the date of our receipt of the intimation of death in writing along with death certificate. Settlement Option NAV of date of installment payment under settlement option. Maturity Benefit NAV of the date of maturity. Termination NAV of date of termination. Policy Alteration NAV of date of alteration in the policy. Guaranteed Additions NAV on the date of allocation. Currently, the cut-off time is 3.00 p.m. as per the existing IRDAI guide lines and changes in this regard shall be as per the instructions from IRDAI. In case of New Business the cut-off time of 3.00p.m. for determi nation of NAV shall be in reference to the date of acceptance of risk i.e date of commencement of policy
If the transaction request is received before the cut-off time in respect of:
- Single Premium payment, at any branch office of the Corporation (applicable for offline sale) or by any digital payment mode (applicable for online sale)
- Other transaction, by servicing branch of the Corporation
- Successfull Registration of Service Requests as and when made available on LIC’s Customer Portal. the closing NAV of that day shall be applicable.
If the transaction request is received after the cut-off time in respect of:
Single Premium payment, at any branch office of the Corporation (applicable for offline sale) or by any digital payment mode (applicable for online sale)
Other transaction, by servicing branch of the Corporation
Successful Registration of Service Requests as and when made available on LIC’s Customer Portal.
The closing NAV of the next business day shall be applicable
In case of Offline sale, premium paid by CTS 2010 cheque/demand draft drawn on a bank which is participating in local/CTS/speed clearing house shall only be accepted. Cheques /demand draft not coming under above category shall not be accepted.
7. Charges under the Plan:
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Premium Allocation Charge:
This is the percentage of the premium appropriated towards charges from the premium received. The balance known as allocation rate constitutes that part of the premium which is utilized to purchase units for the policy.
The allocation charges are as below:
> For Offline sale: 3.30%
> For Online sale: 1.50% -
Mortality Charge:
Mortality Charge is the cost of life insurance cover, which is age specific and this will be taken at the beginning of each policy month by canceling the Unit Fund Value appropriately. The monthly charges will be one twelfth of the annual Mortality Charges.
This charge shall depend upon the Sum at Risk i.e. the difference between the Basic Sum Assured and Unit Fund Value as on the date of deduction of charge, after deduction of all other charges, and shall be deducted only if, the Basic Sum Assured is more than the Unit Fund Value on the date of deduction.
In case of partial withdrawals, the Basic Sum assured shall be reduced to the extent of all Partial Withdrawals made during the two years period immedi ately preceding the date of deduction of Mortality Charges
The rate of Mortality Charge per annum per Rs. 1000/- Sum at Risk for some of the ages in respect of a healthy life are as under:
Age 25 35 45 50 ₹ 1.23 1.60 3.59 6.18 -
Accident Benefit Charges ( if LIC’s Linked Accidental Death Benefit Rider is opted for):
Accident Benefit Charge is the cost of Accident Benefit cover, if LIC’s Linked Accidental Death Benefit Rider(if opted for).This charge will be taken at the beginning of each month by canceling appropriate number of units out of Unit Fund while the policy is inforce. A level annual charge shall be at the rate of ₹0.40 per thousand Accident Benefit Sum Assured per policy year. If the Life Assured is engaged in police duty in any police organization other than paramilitary forces and opted for this cover while engaged in police duty, then the level annual charge shall be at the rate of ₹0.80 per thousand Accident Benefit Sum Assured per policy year. The monthly charges will be one-twelfth of the annual Accident benefit Charge
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Other Charges:
The following charges shall be deducted during the term of the policy:
Fund Management Charge:
This is a charge levied as a percentage of the value of assets and shall be appropriated by adjusting the Net Asset Value. Fund Management (FMC) Charge shall be as under:
- 1.35% p.a. of Unit Fund for all the four Funds available i.e. Bond Fund, Secured Fund, Balanced Fund and Growth Fund
- 0.50% p.a. of Unit Fund for “Discontinued Policy Fund”
This is a charge levied at the time of computation of NAV, which will be done on daily basis. The NAV thus declared will be net of FMC.
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Switching Charge:
This is a charge levied on switching of monies from one segregated fund to another available within the product. The charge per switch, if any, shall be levied at the time of effecting the switch. Within a given policy year 4 switches will be allowed free of charge. Sub sequent switches in that year shall be subject to a Switching Charge of ₹100 per switch. This charge will be recovered by canceling appropriate number of units out of the Unit Fund..
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Partial Withdrawal Charge:
This is a charge levied on the Unit Fund at the time of partial withdrawal of the fund during the contract period. A flat amount of ₹100/- shall be deducted by cancelling appropriate number of units out of Unit Fund on the date on which partial with drawal takes place.
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Discontinuance Charge:
This Charge shall be deducted by cancelling appropriate number of units out of Unit Fund Value as on the date of discontinuance of Policy. The Discontinuance charge applicable is as under:
Where the policy is discontinued during the policy year Discontinuance Charges for the Policies having Single Premium up to ₹3,00,000 Discontinuance Charges for the Policies having Single Premium above ₹3,00,000 1 Lower of 2% * (SP or FV) subject to maximum of ₹3000/- Lower of 1% * (SP or FV) subject to maximum of ₹6000/- 2 Lower of 1.5% * (SP or FV) subject to maximum of ₹2000/- Lower of 0.70% * (SP or FV) subject to maximum of ₹5000/- 3 Lower of 1.00% * (SP or FV) subject to maximum of ₹1500/- Lower of 0.50% * (SP or FV) subject to maximum of ₹4000/- 4 Lower of 0.5% * (SP or FV) subject to maximum of ₹1000/- Lower of 0.35% * (SP or FV) subject to maximum of ₹2000/- 5 and onwards NIL NIL Where
SP- Single Premium
FV – Unit Fund Value on the date of discontinuance of Policy.“Date of discontinuance of the policy” shall be the date on which the insurer receives the intimation from the Life Assured or policyholder about surrender of the policy.
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Tax Charge:
Tax charges, if any, will be as per Tax laws and rate of tax as applicable from time to time.
Tax Charge shall be levied on all or any of the charges as per the prevailing Tax laws/ notification etc. as issued by Government of India or any other Constitutional Tax Authority of India from time to time in this regard in this regard without any reference to the policyholder.
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Miscellaneous Charge:
This is a charge levied for an alteration during the contract, such as Grant of Accident Benefit Rider after the issue of the policy, and shall be a flat amount of ₹100/- which will be deducted by cancelling appropriate number of units out of Unit Fund and the deduction shall be made on the date of alteration in the policy.
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Right to revise charges:
The Corporation reserves the right to revise all or any of the above charges except, Mortality charge and Accident Benefit Charge. The modification in charges will be done with prospective effect with the prior approval of IRDAI after giving the policyholders a notice of 3 months which shall be notified through our website.
Although the charges are reviewable, they will be subject to maximum charges as declared by IRDAI from time to time. The current cap on charges is as under :- The Fund Management Charge shall not exceed the limits specified by IRDAI which are currently same as mentioned in Para 7.D. i above.
- Partial withdrawal charge shall not exceed ₹500/- on each withdrawal.
- Switching Charge shall not exceed ₹500/- per switch.
- Miscellaneous Charge shall not exceed ₹500/- each time when an alteration is requested.
- Discontinuance charges shall not exceed the limits specified by IRDAI, which are currently same as mentioned under Para 7.D.iv aboveIn case you do not agree with the revision of charges then you shall have the option to withdraw the Unit Fund Value. If such revision in charges is made during the lock-in-period of 5 years, withdrawal shall be allowed only after the expiry of 5 years’ lock-in-period.
8. Surrender:
A policy can be surrendered anytime during the policy term. The surrender value, if any, shall be payable as under:
If the policy is surrendered during the 5 years’ lock-in-period:
If you apply for surrender of the policy during the the 5 years’ lock-in-period, then the Unit Fund Value after deducting the Discontinuance Charge as specified in Para 7.D.(iv) shall be converted into monetary amount which shall be equal to the NAV of the underlying Fund Type as on the date of receipt of application for surrender multiplied by the number of units in the Unit Fund after deduction of Discontinuance Charge. This monetary amount shall be transferred to the Discontinued Policy Fund by converting the monetary amount into the units. The number of units transferred to the Discontinued Policy Fund shall be the monetary amount divided by the NAV of the Discontinued Policy Fund as on the date of transfer. The Proceeds of the Discontinued Policy Fund in respect of this policy, as specified Para 9 below, shall be payable at the end of 5 years’ lock-in-period.
In case of death of the life assured after the date of surrender but before the expiry of the 5 years’ lock-in-period, the Proceeds of the Discontinued Policy Fund in respect of the policy shall be payable to the nominee/ legal heir immediately.
If the policy is surrendered after the 5 years’ lock-in-period:
If you apply for surrender of the policy after 5 years’ lock-in-period, then the Unit Fund Value as at the date of surrender shall be payable. There will be no Discontinuance Charge under the policy.
Reinstatement of a surrendered policy shall not be allowed even if a request for reinstatement is received from the policyholder during the 5 years’ lock-in period.
9. Calculation of Proceeds of the Discontinued Policy Fund:
The Proceeds of the Discontinued Policy Fund of the policy shall be higher of Discontinued Policy Fund Value or the Guaranteed Monetary Amount. The Guaranteed Monetary Amount is the accumulation of monetary amount transferred into the Discontinued Policy Fund at the guaranteed interest rate. The guaranteed interest rate shall accrue from the date when the monetary amount is transferred to the Discontinued Policy Fund to the date when the policy exits from the Discontinued Policy Fund either by death or at the end of 5 years’ lock-in-period in case of surrender.
Currently this guaranteed interest rate is 4% p.a. and shall be subject to change from time to time as declared by IRDAI.
10. Compulsory termination:
If the policy has run for at least 5 years and the balance in the Unit Fund is not sufficient to recover the relevant charges, the policy shall be compulsorily terminated and the balance amount in the Unit Fund, if any, shall be refunded to the Policyholder.
11. Other Features:
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Increase/Decrease of risk covers:
No increase / decrease of benefits will be allowed under the plan. The policyholder can, however, cancel the LIC’s Linked Accidental Benefit Rider at anytime during the policy term. How ever, once the rider is cancelled, the same cannot be subsequently restored.
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Top-up:
No Top-up shall be allowed under the plan.
12. Risks factors and Disclaimers :
LIC’s Nivesh Plus is a Unit Linked Life Insurance product, which is different from the traditional insurance products.
The premium paid in Unit Linked Life Insurance policies is subject to invest ment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Nivesh Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
Please know the associated risks and the applicable charges, from your In surance agent or the Intermediary or policy document of the insurer.
The various fund types offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
All benefits under the policy are also subject to the Tax Laws and other financial enactments as applicable from time to time.
The actual value of units under your policy in the IRDAI prescribed FORM D02 can be viewed through a secured login on the Corporation’s website (www.licindia.in)
13. Free Look Period:
If you are not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days (30 days in case of Online sale) from the date of receipt of the policy bond stating the reasons of objections. On receipt of the same the Corporation shall cancel the policy and the amount to be refunded shall be as under:
Value of units in the Unit Fund
Plus Unallocated Premium (equal to Allocation Charge multiplied by the Premium received)
Plus Proportionate Mortality and Accident Benefit charge, if any, for the balance period from the date of opting for Free-Look to the end of the policy month for which the respective charges have been deducted Plus Tax Charges deducted
Less Actual cost of medical examination and special reports, if any,
Less Stamp duty@ Rs.0.20 per thousand Basic Sum Assured and Accident Benefit Sum Assured, if any.
14. Loan:
No loan shall be allowed under this plan.
15. Nomination and Assignment:
Nomination shall be as per Section 39 of the Insurance Act, 1938, as amended from time to time.
Assignment shall be as per Section 38 of the Insurance Act, 1938, as amended from time to time.
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