LIC Market Plus-I Plan – Features and Benefits

Life Insurance Corporation of India (LICI) is a household name. With numerous plans designed for maximum benefit and coverage, it has set the gold standard in the field of insurance services. LIC Market Plus I is a unit linked delayed pension plan.

About LIC Market Plus I Plan

  • LIC Market Plus I plan is a deferred pension plan which is unit linked.
  • Life cover is optional. The plan can be taken up with or without life cover.
  • The policy holder can choose the level of cover which should be within the limit of the plan.
  • The cover level is directly dependent on whether the policy is a single premium or regular premium and on the amount of premium one agrees to pay.
  • One can also choose from the four different types of investment funds, each having varying degrees of market risks.

Eligibility Criteria:

Eligibility for LIC Market Plus I Basic Plan without Life Cover

  • The minimum entry age is 18 years (previous birthday)
  • The maximum entry age is 75 years (next birthday) for regular premium and 80 years (next birthday) for single premium.
  • Minimum vesting age of the policy holder should be 40 years.
  • Maximum vesting age of the policy holder can be 85 years (upcoming birthday).
  • Minimum deferment period is of 10 years for regular premium and 5 years for single premium.

Eligibility for LIC Market Plus I Basic Plan with Life Cover

  • The minimum age for entry is 18 years (previous birthday).
  • The maximum entry age is 65 years (upcoming birthday).
  • The minimum vesting age of the policy holder should be 40 years (completed).
  • The maximum vesting age can be 75 years (upcoming birthday).
  • Minimum deferment period is of 10 years for regular premium and 5 years for single premium.
  • The minimum assured sum is Rs. 30000.
  • In case of single premium, the maximum assured sum will be equal to the premium amount.
  • Maximum assured sum for regular premium can be under two categories
  • With critical illness rider, it is 10 times of the annualized premium if the entry age is up to 40 years. If the entry age is 41 years and above, then it is 5 times the annualized premium.
  • Without critical illness rider, maximum sum assured is 20 times of the annualized premium if the entry age is up to 40 years. Entry age of 41 years and above will result in sum assured that is 5 times the annualized premium.

Premium Payment

The calculation of premium for LIC Market Plus I plan is the same for plans with and without life cover.

Regular Premium

  • 5000 per annum for deferment term above 20 years and Rs. 1000 per month for deferment term of 15-19 years.
  • 10000 per annum for deferment term of 15-19 years and Rs. 1500 per month for deferment term of 10-14 years.
  • 15000 per annum for deferment term of 10-14 years.

Single Premium

  • 30,000 for deferment term of 5 years or higher.

Additional Features of LIC Market Plus I Plan

  • Additional Premium:

Additional premium can be paid in multiples of Rs. 1000 up to any amount, at any time during the policy period. In case of regular premium, it can be paid only if all the premiums have been paid under the policy.

  • Fund Swapping:

One can switch between different fund types during the policy period.

  • Changing Risk Cover:

One can decrease one or all of the risk covers within specified limits, per year during the policy term provided all premiums have been duly paid. Reduced risk cover cannot be restored again.

  • No Partial Withdrawal
  • Reviving Lapsed Policy:

If regular premium installments are not paid within the grace period, the policy becomes lapsed. It can be recharged during the period of 2 years from the due date of the unpaid first installment.

Benefits of LIC Market Plus I Plan

  • Benefit upon Death:

In case of policy without life cover, the death benefit equal to the policy holder’s fund value, is payable to the nominee as one time or as pension.

For policy with life cover, the death benefit payable to the nominee is equal to the sum assured and policy holder’s fund value. It can be paid at a time or as pension.

  • Vesting Benefit:

Upon surviving the term of policy, the policy holder will receive benefit equal to the fund value as annuity only (as per existing annuity rates). However, one may opt for one third of the benefit as lump sum.

  • Benefit after Policy Surrender:

This can be availed only after completion of 3 policy years and it is equal to the fund value on the date of surrendering. If the policy was surrendered before completion of 3 years, the fund value is paid out only after completion of 3 policy years.

  • Accident Benefit:

If accident benefit option is taken with Market Plus I Plan with life cover, then the policy holder shall receive Rs. 25,000 to Rs 50 lakh (including all LIC plans or other insurance plans) in case of accident. It is valid only till policy anniversary which is nearer to insured’s 70th birthday. Accidental death benefit is additional benefit equal to the accidental benefit.

  • Critical Illness Benefit:

This rider under LIC Market Plus I Plan with life cover pays the insured a critical illness benefit equal to the life cover. It is subject to a minimum of Rs. 50,000 to a maximum of Rs. 10,000 (including all other insurance policies). It is valid only till policy anniversary which is nearer to insured’s 60th birthday or a policy term of 35 years, whichever is earlier.

Investment in Funds

The LIC Market Plus-I policy holder can choose any one type of fund from the following.

Type of Fund Investment in Government Securities/ Corporate debts Short Term Investments Listed Equity Shares Risk/Returns
Growth =>20% =<40% =>40%

=<80%

Long term capital growth with high risk
Balanced =>30% =<40% =>40%

=<80%

Balanced growth and return with medium risk
Secured =>45% =<40% =>15%

=<55%

Stable income with low to medium risk
Bond =>60% =<40% Nil Low risk

Units are allotted depending on the Net Asset Value (NAV) of the chosen fund on the allotment date.

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