LIC Wealth Plus Plan - Features and Benefits of LIC Wealth Plus

Wealth Plus plan is a Unit Linked Insurance Plan (ULIP) and has a term of 8 years. This plan comes with an alternative to choose from either a single premium or 3 years’ payment term. After that, the funds collected will be invested in the equity market, thus implying that the risk is only medium.

What is the LIC Wealth Plus Plan?

As an ULIP insurance plan LIC wealth plus provide protection to your investment from fluctuations of the market, so that you can protect your finances from the sudden downfalls. At the end of the policy tenure the insured offers a guaranteed payment of find value. On the basis of Net Asset Value (NAV) whichever is higher whether the first 7 years of the policy or at the end of the policy tenure. A NAV of the sum will be subject to minimum Rs 10 if the policy term is 8 years.

LIC Wealth Plus Plan Eligibility

If you wish to buy the LIC wealth plus plan, you need to fulfill some eligibility criteria as mentioned below:

Minimum Entry Age	10 Years
Maximum Entry Age	65 Years
Policy Tenure	8 Years

Features of LIC Wealth Plus Plan

LIC Wealth Plus is an 8 year ULIP.
This policy provides you with an option of receiving complete coverage for up to 2 years even after the maturity of the policy.
The plan is available for a limited period.
In 1st 7 years or at the end of the policy tenure whichever is higher a guaranteed amount based on the NAV is payable on maturity.
Up to 50 lacs of accident benefit is available as part of the plan. Additional charges at a rate of Rs0.50 per 1000 is available as an accidental rider.
After three years of the policy partial withdrawal is allowed at any time.
The premium of the policy can be paid in 4 different modes. By yearly, monthly, half yearly or quarterly basis.
The policy has low allocation charges as compared to other insurance companies.
The minimum to maximum age entry for the policy is 10 years- 65 years.
The policy offers an extended life cover up to 2 years.
The premium limits start from minimum single premium Rs 40,000 up to maximum no upper limits.
The policy tenure is for 8 years.

Other Features

1. Age Limit

Individuals of 10 to 65 years of age can avail this plan by paying a minimum premium as mentioned above. There is no restriction on maximum premium.

2. Returns

This plan assures a payment of the higher of the highest NAV reached in the first 7 years of its term or the 8th year NAV to the policy holder. But this guarantee can only be availed if the policy holder completes the term of the policy and obviously, a charge is levied for this agreed upon before commencement of the plan at the rate of 0.35% of the fund value. The plan comes with an extended life cover for a period of 2 years after completion of the policy term. One can surrender the plan even within three years, but you will get the amount only after three years from the date of the policy as per IRDA restrictions with no surrender charges.

Also read: LIC New Jeevan Shanti Plan: Review, Features & Benefits

Benefits of LIC Wealth Plus Plan

1. Death Benefit

In case of the demise of the policy holder during the term of the policy the nominee will receive the sum assured as a death benefit under the basic policy together with the fund value of the policy holder. In case if the policy holder survives till the completion of the policy tenure but dies before the expiration of extended period, then in that case the nominee will receive the sum assured under basic plan.

2. Maturity Benefits

As per highest Net Assured Value whether in the first 7 years or at the end of 8 years, policyholders get total SA on maturity.

It provides a lot of benefits to the insurance buyers

The plan provides potential for good returns.
As an ULIP plan it provides transparency to the insured.
The insured have flexibility and control of investment as they can shift funds according to their suitability.
The LIC Wealth Plus plan provides liquidity to the insured.
The plan also provides tax benefits under section 80C and 10(10D) of income tax act.

3. Revival

This plan charges only a level premium based on age at entry instead of charging a higher premium for risk cover based on age annually. But in case of revival of a lapsed policy, the age at the date of revival is used to calculate the risk cover premium. Revival is available only within 2 years from the date of lapse and a need to pay a total of INR 500 for revival.

Partial Withdrawals

The plan offers a benefit of partial withdrawals in which withdrawals can be made after three years from the commencement of the plan term and the maximum withdrawal is restricted to twice in a year. Another situation in which one can make a partial withdrawal is that a minimum of one annual premium remaining in the fund, and the minimum amount you need to withdraw must not be less than INR 2000.

Loan Facility

This plan does not allow for a loan option as one can avail the same via partial withdrawals. It also does not provide for payments of top up premiums.

Also read: LIC Plan 5 Years Double Money

Conclusion

If you want to secure your investment, LIC wealth plus plan is the best option for you. Purchase this plan and you don’t have to worry anymore about the market fluctuations and risk of loss. The plan will cover your investment and provide you financial assistance as per the market trends. If the market goes down, your investment will be safe.

LIC Wealth Plus Plan – FAQs

Can I take a loan against the LIC wealth plus plan?

Ans. No, LIC wealth plus plan doesn’t provide any loan facility. But you can opt for a partial withdrawal option.

What is the sum assured under the LIC Wealth plus plan?

Ans. The minimum SA for 3 years premium paying term is 5 x annual premium. While for a single premium, it will be 1.25x single premium. The maximum sum assured for 3 years premium is 10x annual premium (entry age 50 years), 5 x annual premium (entry age 51 years +).

For single premium, the maximum sum assured will be 5 x single premium (entry age below 40 years). 2.5 x single premium for entry age 41-50 years or 1.25 x single premium (entry age 51+).