Review of LIC Pension Plus Plan: Features, Charges and Policy

What is LIC Pension Plus?

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).

LIC Premium Payment

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.

Features of LIC Pension Plus Plan

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/-.

LIC Pension Plus Charges

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.

• In a given policy year 2 switches will be allowed free of charge.
• Subsequent switches in that year shall be subje`ct to a switching charge of Rs. 100 per switch.
• Death Benefit

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:

• Revival of the policy or
• Complete withdrawal from the policy
• During the notice period of 30 days, the policy shall be treated as in force till the date of discontinuance of the policy.