LIC SIIP market-linked plan: Key features, minimum investment, how to buy policy and other key details

The Life Insurance Corporation of India (LIC) offers a unit-linked insurance plan which combines the benefits of mutual funds and life insurance. The LIC SIIP plan provides insurance cover and also helps grow wealth over time.   

LIC SIIP Plan Eligibility

The policyholder must be minimum 90 days and maximum 65 years old to be eligible for the LIC SIIP plan. The minimum policy term is 10 years while the maximum term is 25 years. For policyholders below the age of 55 years, the minimum basic sum assured is 10 times of annualised premiums while for those aged 55 years and above, the basic sum assured is seven times the annualised premiums.

The minimum premium amount is Rs 40,000 for yearly payments, Rs 22,000 for half-yearly payments, and Rs 12,000 if the premium is paid quarterly. For monthly payments, the minimum premium amount is Rs 4,000.

The minimum maturity age limit is 18 years and the maximum age limit is 85 years.

Benefits and Features of LIC SIIP policy

The policy offers four different fund options. These include Bond fund, balanced fund, secured fund, and growth fund. The policyholders can also switch between the types of fund.

Other features of the policy include rider benefits and partial withdrawals. Under rider benefits, the accidental benefit sum assured goes to the nominee if the insured person dies in an accident. It must be noted that the accidental sum assured cannot be more than the basic sum assured amount of the policy. The rider benefit is available till the maturity date or till the policy anniversary upto the age of 70 years of the life insured, whichever is earlier.

Under the partial withdrawals benefit, policyholders can partially withdraw units at any time once they complete the lock-in period of five years. Partial withdrawals are only available in the form of a fixed amount or fixed number of units.

The LIC SIIP unit-linked plan also comes with death benefit, maturity benefit, and guaranteed additions. If the policyholder survives after the policy term, the maturity benefit will be equal to the total fund value. If the policy holder dies before the commencement of the risk period, then the death benefit will be equal to the unit fund value. On the other hand, if the policy holder dies after the commencement of the risk period, the death benefit will be an amount higher of basic sum assured or unit fund value or 105 per cent of the total premium payable.

You can also claim tax benefits under Section 80C and 10(10D) of the Income Tax Act after buying the policy.

For a policy term between 10 years to 25 years, the policyholder can get a guaranteed return of 10 per cent to 25 per cent of the fixed annualised premium.

How to buy LIC SIIP market-linked plan

The LIC SIIP market-linked plan can easily be bought online from the official website of LIC. Policyholders can also buy the policy offline through intermediaries.