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

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:

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:

*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

 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.