Monday, September 13, 2010

Pension Plus scheme with guaranteed return | LIC

Life Insurance Corporation (LIC) plans to launch a unit-linked pension scheme – LIC Pension Plus.

Unique Features:
• Minimum rate of interest of 4.5% is guaranteed, after maturity, one-third of the corpus can be withdrawn as a lumpsum amount.
• The remaining two-thirds would be paid in either monthly or half-yearly installments after maturity, as decided by the policy holders.
• The Pension Plus policy is in line with the Insurance Regulatory and Development Authority's latest ULIP guidelines.

The Pension Plus plan Options:
1. Debt fund and
2. Mixed fund.
Under the debt fund, not less than 60% of the corpus would be invested government securities, while the remaining 40% would go into money market instruments.

Under the mixed fund plan, the investment in government securities would not be less than 45%, while 40% would go into money market instruments and 15-35% into equities.

Eligibility:
• This insurance plan can be subscribed by any one between 18-75 years of age and,
• The minimum maturity period is 10 years.

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