Wealth Plus by LIC is a now discontinued ULIP. It was available in the insurance market for a restricted time period only. It safeguarded one’s investment from market oscillations by paying the value by the expiration of the term of the policy.
The calculation regarding the final fund value that the policyholder will receive is complex, and can be found in the official document of the plan. The whole amount is invested from the very first date till closure date in money markets.
What is LIC Wealth Plus Plan?
As a unit linked plan LIC Wealth plus is an extremely beneficial plan and offers a lot more than the basic insurance cover. LIC wealth plus is really an impressive policy that is customized to fit your plan accordingly. This unit link insurance policy is a life protection cum term insurance plan that offers you life insurance coverage along with an option of getting market related return.
While purchasing a LIC Wealth plus policy one has a choice of selecting from different funds having different degree of risk coverage based on risk appetite. The overall flexibility and openness are some of the appealing features that make ULIPs a compelling long lasting investment choice.
We will have a look at the key features and benefits of LIC Wealth Plus product.
Key Features of LIC Wealth Plus Plan
Listed below are a few key features that are important to keep in mind regarding LIC Wealth Plus
- Eight years is the maximum term of the policy, and also comes with an extension of two years beyond the end date of the term.
- The Net Asset Value of this fund is set at Rs. 10.
- The whole premium paid, after deducting the allocation charge, shall be utilised to buy individual components of the chosen fund
- The value of the units depends on NAV, and it is variable.
- This LIC Wealth Plus plan ensures that the best NAV is given daily for the initial seven years; although this is subject to the lowest amount i.e., Rs. 10.
- This policy also has the option for the policyholder of choosing an Accidental Beneficiary Rider.
Benefits of LIC Wealth Plus Plan
Now that we know about the key features of LIC Wealth Plus plan, we look at the benefits of LIC Wealth Plus plan and why it is so popular-
- In case of the death of the policyholder during the term of the policy, the nominee mentioned will receive a death benefit. This benefit equals the sum of the sum assured mentioned in the policy and the fund value of the policyholder.
- In the case of the death of the policyholder after the term of the policy, but unless the extended period of the life cover expires, the nominee mentioned will get only the basic sum assured.
- As per LIC Wealth Plus plan, in case, the policyholder survives the whole term of the policy, he/she will be granted a sum which will be equivalent to the current value of the fund chosen by the policyholder.
- Accident Rider was activated and in case the insurer passed away during an accident, another amount called Accident Benefit, which was previously agreed, was paid to the nominee.
- After 3 years into LIC Wealth Plus plan, the Wealth Plus conditions approve and facilitate withdrawals, albeit partial, under some circumstances.
- This LIC plan is a ULIP, and just like other plans of this category, it offers the prospects of promising returns on investment in debt, equity and any other such forms of investment. One may choose funds with higher risk if one wishes for greater potential returns, or one could play it safe with low risk, low return funds.
- This LIC Wealth Plus plan being a ULIP is transparent. The structure, the Rate of Return, value of investment, etc. is all shared beforehand. The whole process of applying and going through this plan is very transparent.
- Opting for this plan means you get to have tax benefits. One can avail tax benefits under Section 80C of the Income Tax Act, 1961. Section 80D of the same act provides tax relief for life insurance plans as well as critical illness riders. Maturity proceeds and any form of withdrawals are tax exempt under Section 10 (10D) of the Income Tax Act, 1961.
- This LIC Wealth Plus plan allows you to enhance and increase your cover by choosing a rider. This flexibility of choice grants you additional benefits and greater cover of the main insurance policy. Some examples of commonly chosen riders are accident benefit rider, critical illness benefit rider, premium waiver rider, etc.
- ULIPs are liquid in nature. This means that if you opt for this plan, you will be able to make emergency withdrawals or any other scenario where you need the money urgently.
And finally, LIC Wealth Plus Plan provides multiple benefits in one pack. Along with life cover, it also provides a wide array of investment opportunities, and on top of that, tax benefits.