LIC’s SIIP Plan

LIC’s SIIP is a Regular Premium, Non-Participating, Unit Linked, Individual Life Insurance plan which offers insurance cum investment during the term of the policy.

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. THE LINKED INSURANCE PRODUCTS DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICYHOLDERS WILL NOT BE ABLE TO SURRENDER/ WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF FIFTH YEAR.

You have a choice of investing premiums in one of the four types of investment funds available. Premiums 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).

Death Benefit:

On death after the Date of Commencement of Risk: An amount equal to the highest of the following shall be payable:

  • Basic Sum Assured less any Partial Withdrawals made during the two years’ period immediately preceding the date of death ;or
  • Unit Fund Value ;or
  • 105% of total premiums received upto the date of death less Partial Withdrawal.

Maturity Benefit:

On Life Assured surviving the stipulated Date of Maturity, an amount equal to the Unit Fund Value is payable.

Refund of Mortality Charge:

Provided all due premiums under the policy have been paid, on Life Assured surviving the stipulated Date of Maturity, an amount equal to the total amount of Mortality Charges deducted in respect of life insurance cover shall be payable along with the Maturity benefit.

Guaranteed additions :

Guaranteed Additions as a percentage of Single Premium as mentioned in the Table below shall be added to the Unit fund on completion of specific duration of policy years.

Optional Accident benefit rider :

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. The Policyholder has the option to cancel this rider at any time during the policy term. However, once the rider is cancelled, it cannot be re-opted.

Partial Withdrawals :

A policyholder can partially withdraw the units at any time after the fifth policy anniversary, may be in the form of fixed amount or in the form of fixed number of units as per details given in FAQ. The above Partial withdrawal shall be allowed subject to minimum balance equal to the single premium paid in the unit fund.

Eligibility Conditions And Other Restrictions:

  • Basic Sum Assured : Ages below 55 years --> 10 times Annualized Premium
  • For Ages 55 years and above --> 7 times Annualized Premium
  • Minimum Premium : Yearly : Rs. 40000/-; Half-Yearly : Rs. 22000/-; Quarterly : Rs. 12000/-; Monthly(NACH) : Rs. 4000/-
  • Maximum Premium : No Limit. Annualized Premiums shall be payable in multiple of Rs.1,000 for all modes other than monthly. For Monthly (NACH), the premium shall be in multiples of Rs.250/-
  • Minimum age at entry : 90 Days (completed)
  • Maximum age at entry : 65 years (nearest birthday)
  • Policy Term : 10 to 25 years
  • Premium Paying Term : Same as Policy Term
  • Premium Payment Mode : Yearly /Half yearly /Quarterly/Monthly(NACH)
  • Minimum Maturity Age : 18 years (completed)
  • Maximum Maturity Age : 85 years (nearer birthday)