LIC has launched a new plan “Wealth Plus" on 9th of February,2010.
Wealth Plus (Plan no 801) is an unit linked plan having a term of 8 years and with a Payment term of 3 years or Single premium. This plan will be available for three months from 9th february. Your money will be invested in the money market till the Plan closes for sale, which is three months after February 9th. There after only it will be invested in the equity market, which implies that the risk is only medium.
People in the age range of 10 to 65 can avail this plan by paying a minimum premium of 40,000 under single premium mode or Rs. 20,000 annually for three years. Maximum premium has no restrictions.
Your risk is covered for a minimum of 1.25 times of the premium you pay under single premium mode. The maximum risk cover one can avail under single premium for age less than 40 is 5 times the premium, while it is 2.5 times if age is below 50 and 1.25 times for ages above 50. Under the regular premium mode the minimum risk cover is 5 times and the maximum cover is 10 times the annual premium for ages below 50.
This plan guarantees to pay you the higher of the Highest NAV reached in the first 7 years of its term or the 8 th year NAV. But this guarantee of highest NAV can only be availed if you complete the term of the policy and of course, a charge is levied for this guarantee at the rate of 0.35% of the fund value.
The plan comes with an extended life cover for a period of 2 years after end of the term. You can surrender the plan even within three years, but the amount will be only paid after three years from date of the policy as per IRDA restrictions and there are no surrender charges.
Instead of charging higher premium for risk cover based on age every year, This plan charges only a level premium based on age at entry. But in the case of revival of a lapsed policy , the age at date of revival is used to arrive at the risk cover premium. Revival can be done only within 2 years from date of lapse and Rs. 500 is charged for revival.
The plan has an inbuilt feature of partial withdrawals wherein, withdrawals can be after three years from commencement of your plan and the maximum withdrawal is restricted to twice in a year. Other condition to be satisfied to make a partial withdrawals is that there should be a minimum of one annual premium left in the fund, and the minimum amount to be withdrawn must not be less than Rs.2000.
Loan is not granted in this plan as one can avail the same via partial withdrawals. The plan also does not provide for payments of Top up premiums.
As maturity benefit you are offered the highest NAV for your units in the fund,if you complete the term of 8 years under the plan.
Death benefit equals the sum assured plus the fund value during the term of the policy. For death during the first two years of the plan, and also after the term of the policy during the extended risk cover period the sum assured is only paid as the benefit.
As maturity benefit you are offered the highest NAV for your units in the fund, if you complete the term of 8 years under the plan.You can avail an accident rider benefit, by paying @ Rs.0.50 per thousand risk cover.
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