LIC’s SIIP is an individual life insurance plan that falls into the category of Unit Linked, Non-Participating, and Regular Premium policies. This plan provides combined insurance and investment coverage for the entire policy term.
You can purchase this plan both offline through an intermediary and online by visiting www.licindia.in.
This plan allows you to invest your premiums in one of four available types of investment funds. Each premium payment, after deducting the Premium Allocation Charge, will be used to purchase units in the chosen Fund. The value of these units can fluctuate based on the Net Asset Value (NAV) and is subject to various associated charges.
LIC’s SIIP Plan Benefits
Death Benefit
Before Risk Commencement Date: Unit Fund Value is paid.
After Risk Commencement Date: The higher of Basic Sum Assured minus recent Partial Withdrawals, Unit Fund Value, or 105% of total premiums paid (adjusted for recent Partial Withdrawals) is paid.
Charges collected after death are refunded along with the death benefit. Any added Guaranteed Additions (in case of delayed death claim intimation) are deducted from the Unit Fund.
The death benefit can be received as a lump sum or in installments if the Settlement Option is chosen, as per the preference of the Policyholder/Life Assured.
Maturity Benefit
Refund of Mortality Charges
If the Life Assured survives until the maturity date, and all due premiums under the policy have been paid, an amount equal to the total mortality charges deducted for the life insurance cover will be paid along with the Maturity Benefit. These charges do not include any additional amount due to underwriting decisions or taxes on the mortality charges.
Please note that the refund of mortality charges will not be paid in the case of a surrendered or discontinued policy.
Eligibility Conditions
| (Minimum/Maximum) Basic Sum Assured |
|
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| Minimum Age at entry | [90] Days (completed) | |
| Minimum Maturity Age | [18] years (Completed) | |
| Maximum Maturity Age | [85] years (nearer birthday) | |
| Policy Term | 10 to 25 years | |
| Premium Paying Term | Same as Policy Term | |
Exclusion:
Suicide Clause: In the event of suicide by the Life Assured within 12 months from the policy commencement date or from the date of policy revival, the nominee or beneficiary of the policyholder will receive the Unit Fund Value as of the date of death notification, along with the death certificate. In such cases, no other claims will be entertained, and the policy will be terminated.
Any charges, except Fund Management Charges (FMC), collected after the date of death will be refunded and added to the Fund Value as of the date of death notification, along with the death certificate. Additionally, any Guaranteed Additions added after the date of death (in case of delayed death claim notification) will be deducted from the Unit Fund.
It’s important to note that this clause does not apply if the age at entry or age at revival of the Life Assured is below 8 years, and in such cases, the policy will pay the death benefit as per the terms mentioned.