LIC Systematic Investment Insurance Plan (SIIP)

1. LIC SIIP plan is a regular premium policy that offers monthly, quarterly, half-yearly, and yearly savings options.
2. LIC SIIP plan provides insurance coverage seven times if the age is above 55 and ten times if the age is below 55.
3. The LIC SIIP plan offers four fund options: bond, secured, balanced, and growth.
4. LIC SIIP plan allows switching between funds up to four times per year.
5. LIC SIIP plan allows partial withdrawals after five years.
6.  LIC SIIP plan offers life risk coverage with investment opportunities.
7. LIC SIIP plan includes a guaranteed addition to the unit fund value.
8. LIC SIIP plan allows the surrendering of the policy after a five-year lock-in period.
9. LIC SIIP plan also offers additional riders, such as accidental coverage.
10. LIC SIIP plan allows policyholders to claim tax benefits under Section 80C and Section 10(10D) of the Income Tax Act

LIC SIIP Plan Benefits

1. Death Benefit: If the policyholder dies before the coverage begins, the beneficiary will receive an amount equivalent to the unit fund value. If the policyholder dies after coverage begins, the beneficiary will receive whichever of the following is highest: the unit fund value, 105% of all premiums paid until the policyholder's death, minus any partial withdrawals, or the basic sum assured amount, minus any partial withdrawals. The death benefit can be received as a lump sum or in instalments.

1. Maturity Benefit: Suppose the policyholder survives until the maturity date. In that case, the insurer will pay an amount equivalent to the total mortality charges that were deducted for the life insurance coverage, in addition to the maturity benefit. This refund of the mortality charge will not be available for discontinued or paid-up policies or for policies that are surrendered.

1. Guaranteed Additions: Guaranteed additions, expressed as a percentage of one annual premium, will be added to the fund value when specific policy years are completed, as long as all premiums are paid.

1. Rider Benefit: The plan includes an option to add a rider for an accidental death benefit. If the policyholder dies in an accident, the beneficiary will receive the accidental death benefit sum assured. Note that the accidental death benefit assured sum amount cannot be more than the basic sum assured amount. It can be added only at the policy anniversary when at least five years remain in the policy term. The benefit will be available until the maturity date or the policy anniversary on which the policyholder reaches 70 years old, whichever comes first.

1. Partial Withdrawal: The policyholder can make partial withdrawals of units after completing five years of the policy as long as all premiums have been paid. However, for a minor policyholder, partial withdrawals are only allowed after the policyholder reaches age 18. Partial withdrawals can be made as a fixed amount or as a set number of units.

Eligibility & Other Criteria

Premiums for all modes except monthly must be paid in increments of Rs.1,000. For monthly payments, premiums must be paid in increments of Rs.250.

LIC SIIP Investment Fund Options

Charges Under LIC SIIP Plan

1. Premium Allocation Charge: The premium allocation charge is a fee that is taken out of the premium payment and used to purchase units for the policy. It is broken down as follows: 8% for the first year when purchased offline, 3% when purchased online; 5.5% for the second through the fifth year when purchased offline, 2% when purchased online; and 3% for the sixth year and beyond when purchased offline, 1% when purchased online.

1. Mortality Charges: The mortality charges refer to the cost of life insurance coverage. These charges are based on the policyholder's age and are deducted from the unit fund value at the start of each policy month. The amount of the payment is determined by the amount of coverage provided over the course of the policy.

1. Accidental Benefit Charges: The accidental benefit charges are fees that apply to the accidental death benefit rider if chosen by the policyholder. These charges are deducted from the unit fund value at the beginning of each month while the policy is active. The amount is calculated at a rate of Rs.0.40 per thousand.

1. Fund Management Charges: The fund management charge is a fee that is calculated as a percentage of the value of the assets and is taken out by adjusting the net asset value. This charge is applied when the net asset value is calculated on a daily basis.

1. Switching Charges: The switching charge is the fee that is charged when the policyholder switches funds from one fund to another available within the plan. The policyholder can switch funds up to four times for free in a financial year. The following switches in the same year are subjected to switching charges of Rs.100 per switch.

1. Partial Withdrawal Charges: The partial withdrawal charge is a fee applied when a certain amount is withdrawn from a unit fund during the contract period. This charge is a flat rate of Rs.100 and is calculated by deducting a corresponding number of units from the unit fund value on the date of partial withdrawal.

Free-look Period & Grace Period

1. The free-look period is when the policyholder can cancel the insurance policy if they are not satisfied with its terms and conditions. The plan offers a 15-day free-look period for offline purchases and 30 days for online policy purchases.

1. The plan offers a grace period of 30 days, during which the policyholder can pay any unpaid premium.