LIC’s Pension Plus is a unit linked deferred pension plan, which provides you a minimum guarantee on the gross premiums paid. The plan is without any life cover. You have a choice of investing your premiums in one of the two types of investment funds available. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).
You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy. Alternatively, a Single premium can be paid.
A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (through ECS) premiums.
Minimum Entry Age |
18 years |
Maximum Entry Age |
75 years |
Minimum Vesting Age |
40 years |
Maximum Vesting Age |
85 years |
Minimum Deferment Term |
10 years |
Sum Assured |
NIL |
Minimum Premium |
Regular premium (other than monthly (ECS) mode): Rs. 15,000 p.a. Regular premium (for monthly (ECS) mode): Rs. 1,500 p.m. Single premium: Rs. 30,000 |
Maximum Premium |
Regular premium: Rs. 1,00,000 p.a. Single premium: No Limit |
Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-.
Premium Allocation Charge
This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy.
The allocation charges are as below:
For Single premium policies |
3.3% |
|
For Regular premium policies |
1st Year |
6.75% |
2nd to 5th |
4.5% |
|
Thereafter |
2.5% |
|
Top-up Allocation charge |
1.25% |
Policy Administration charge
Rs. 30/- per month during the first policy year and Rs 30/- per month increasing at 3% p.a. thereafter, throughout the term of the policy shall be levied.
Fund Management Charge
It is a charge levied as a percentage of the value of units at following rates:
“Debt” Fund |
0.70% p.a. of Unit Fund |
“Mixed” Fund |
0.80% p.a. of Unit Fund |
*Fund Management Charge shall be appropriated while computing NAV.
Switching Charge
This is the charge levied on switching of money from one fund to another.
The Policyholder’s Fund Value shall be payable either in a lump sum or as an annuity, as desired by the nominee.
See Also: National Pension System
Partial Withdrawal
No partial withdrawal of units will be allowed under this plan.
Switching Charges
You can switch between the two fund types during the policy term subject to switching charges, if any.
Funds Available
Fund Type |
Investment in Government / Government Guaranteed Securities / Corporate Debt |
Short-term investments such as money market instruments |
Investment in Listed Equity Shares |
Details and objective of the fund for risk /return |
Debt Fund |
Not less than 60% |
Not more than 40% |
Nil |
Low risk |
Mixed Fund |
Not less than 45% |
Not more than 40% |
Not less than 15% & Not more than 35% |
Steady Income - Medium risk |
Discontinuance of Premium
If you fail to pay premiums under the policy within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:
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