{"id":3134,"date":"2013-01-02T16:47:56","date_gmt":"2013-01-02T11:17:56","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=3134"},"modified":"2013-01-02T16:52:24","modified_gmt":"2013-01-02T11:22:24","slug":"lic-flexi-plus-plan-review","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/lic-flexi-plus-plan-review\/","title":{"rendered":"LIC Flexi Plus Plan – Review"},"content":{"rendered":"

January to March are the months when people rush to make Tax Saving Investments. Insurance companies know this and they launch newer products to get a pie of this. Keeping with these traditions LIC has launched Flexi Plus – a Unit Linked Insurance Plan (ULIP)<\/strong>.<\/p>\n

LIC Flexi Plus \u2013 Features:<\/h3>\n
    \n
  1. Sum Assured is 10 times the annual premium<\/li>\n
  2. Maturity Benefits payable irrespective of survival of the Life Assured during the term<\/li>\n
  3. Partial Withdrawal after 5 years<\/li>\n
  4. On Surrender of the policy, Policyholder\u2019s Fund Value is payable. There is no Discontinuance Charge after completion of 5 policy years.<\/li>\n
  5. Two funds to choose from \u2013 Mixed Fund and Debt Fund<\/li>\n
  6. Four free switches allowed during a policy year<\/li>\n<\/ol>\n

    LIC Flexi Plus \u2013 Eligibility:<\/h3>\n

    The table below shows the eligibility for LIC Flexi Plus Plan.<\/p>\n

    \"LIC
    LIC Flexi Plus – Eligibility Conditions<\/strong><\/figcaption><\/figure>\n

    LIC Flexi Plus – Death Benefit:<\/h3>\n
      \n
    1. Immediate lump sum payment equal to the Sum Assured shall be paid to the nominee \/ legal heir.<\/li>\n
    2. An amount equal to sum of all future premiums payable after the date of death shall be credited to the Policyholder\u2019s Fund.<\/li>\n
    3. On the Date of Maturity an amount equal to the Policyholder\u2019s Fund Value will be given to the nominee\/legal heir.<\/li>\n<\/ol>\n

      LIC Flexi Plus – Maturity Benefit:<\/h3>\n
        \n
      1. On Life Assured surviving the date of maturity, an amount equal to the Policyholder\u2019s Fund Value is payable<\/li>\n<\/ol>\n

        LIC Flexi Plus – Investment Options:<\/h3>\n

        LIC Flexi Plus has two options for investment.<\/p>\n

          \n
        1. Debt Fund<\/strong> – This purely invest in debt funds and is suited for low risk profile.<\/li>\n
        2. Mixed Fund<\/strong> – This would have maximum of 25% equity investment and rest in debt instruments. This is more risky than debt fund but is also more rewarding in terms of returns.<\/li>\n<\/ol>\n

          The details are mentioned in the table below:<\/p>\n

          \"LIC
          LIC Flexi Plus – Fund Investment Options<\/strong><\/figcaption><\/figure>\n

          Logic for Expected Returns:<\/strong><\/p>\n

          The Debt Fund option above is similar to Debt: Gilt and Long Term Mutual Fund<\/strong>. I looked at the 10 Years return of funds from this category. It varied from 3.34% to 7.91% annualized. So you should expect similar returns from the LIC Flexi Plus \u2013 Debt Fund.<\/p>\n

          Similarly LIC Flexi Plus \u2013 Mixed Fund is similar to Hybrid: Debt-oriented Conservative Mutual Fund<\/strong>. In this case the 10 year return of funds varied from 7.19% to 14.33%.<\/p>\n

          LIC Flexi Plan – Charges:<\/h3>\n

          The ULIP has the following charges<\/p>\n

            \n
          1. Premium Allocation Charges<\/li>\n
          2. Mortality Charges<\/li>\n
          3. Policy Administration Charges<\/li>\n
          4. Fund Management Charges<\/li>\n
          5. Service Tax<\/li>\n
          6. Switching Charges<\/li>\n
          7. Miscellaneous\u00a0Charges<\/li>\n<\/ol>\n

            The table below shows the details of all the charges:<\/strong><\/p>\n

            \"LIC
            LIC Flexi Plus – Charges<\/strong><\/figcaption><\/figure>\n

            LIC Flexi Plus – Benefit Illustration:<\/h3>\n

            The benefit illustration on LIC Website<\/a> is pathetic as its hardly visible. I tried out from other sources are here are the numbers:<\/p>\n