lic wealth plus plan

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


LIC launched a plan called “Wealth Plus” which is a Unit Linked Insurance Plan (ULIP) that 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 LIC Wealth Plus Plan?

As an ULIP insurance plan LIC wealth plus provide protection to your investment from fluctuations of market, so that you can protect your finances from the sudden downfalls. At the end of the policy tenure the insured is 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 year.

Features of LIC Wealth plus Plan

  • LIC Wealth Plus is a 8 year Unit linked plan
  • 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 accidental rider.
  • After three year 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 company.
  • 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 the amount will be remunerated only after three years from date of the policy as per IRDA restrictions with no surrender charges.

Benefits of LIC Wealth Plus Plan

Death Benefit

In case of the demise of the policy holder during the term of the policy the nominee will receive the sum assure 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 expire of extended period, then in that case the nominee will receive the sum assured under basic plan.

Maturity Benefits

Based on the highest Net Assured Value whether in first 7 years or at the end of 8 years a total sum assured is payed to the insured once the policy is matured.

It provides a lot of benefits to the insurance buyers

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


This plan charges only a level premium based on age at entry instead of charging 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 can be done only within 2 years from the date of lapse and a total of INR 500 is charged for revival.

  1. 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 there should be a minimum of one annual premium left in the fund, and the minimum amount to be withdrawn must not be less than INR 2000.
  2. Loan Facility –This plan does not allow for a loan to be granted as one can avail the same via partial withdrawals. It also does not provide for payments of top up premiums.

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