LIC’s Unit Linked Insurance Plans for minimum 10 years henceforth
- Saturday, November 28, 2009, 16:43
- Insurance, U.L.I.P's
- 3,078 views
- 7 comments
It has not been too late that Insurance Regulatory and Development Authority (IRDA) made its intentions clear that it would be increasing the lock-in period for Unit Linked Insurance Plans (ULIP’s) to five years from present three years. On the other hand Life Insurance Corporation of India (LIC) now has also expressed its intentions to make some substantial changes to its Unit Linked Policies.
Mr. T S Vijayan – Chairman LIC, recently made a statement that LIC is planning to raise the minimum premium from Rs 25,000 to Rs 40,000 and increase the lock in period from 5 years to 10 years for all ULIP products of LIC. The fact was also mentioned that actuaries were actually working to restructure some of the ULIP products of LIC and were trying to cut the expenses and charges under the policies without altering the agent’s commissions. This will certainly be beneficial for all the investors or the policy holder’s as they would have to pay the minimal charges towards the policy administration or other policy charges and at the same time they would be getting secured returns and that too at a higher rate.
At the same time IRDA has also made it clear that they would be launching a portal in the next six to nine months, which would allow policyholders to connect to their respective insurance companies. The main purpose of the portal is to monitor claims, and keep track of how efficient the company settles the claim. This move had been taken to restrict undue selling of the product by all insurance companies including the private players, the new comers and providing security to the policy holders.
So now it’s very certain that most of the Unit Linked products of LIC would be withdrawn from the market and new products or policies would be launched soon. Some of the product of LIC which are currently in the market include policies like:-
- Market Plus I
- Profit Plus
- Money Plus I
- Child Fortune Plus -for child’s financial planning.
- Health Protection Plus – ULIP cum Health Insurance
- Jeevan Saathi Plus – joint life ULIP plan for couples.
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7 Comments on “LIC’s Unit Linked Insurance Plans for minimum 10 years henceforth”
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Does this mean that it wont be allowed to withdrow the fund after 3 years now?
@Rajesh
Yes! The minimum period as per IRDA and applicable to all companies will be 5 years. You will only get to surrender your policy after 5 years.
If you are looking for short term investment then you will need to hurry up and invest before the new rule is in force. But for ULIPS longer terms always yield a higher return.
ya it is true that LIC is planning to rise the locking period to 5-10 years so dear customer be hurry to invest before rules applied so u can get locking period of just 3 years.
@Bhushan thanks for the comment.
People who are really intrested in investing in ULIPS should really hurry up cos the 3 yrs lockin period wont be available if future. So if you r looking for a short term investment and lesser premium paying terms then you certainly need to hurry!
Mr. Punt, As you said LIC Market plus-1 is having 5 year lock in period
which is wronge, it is 3 year. So please do not mis guide people
@ Rajendrasinh hopefully you have not updated your knowledge yet and there is no mention of Market Plus 1 in the whole post.
Just to update you as off today all ULIP Plans of LIC as well as Private insurance companies have been withdrawn. The only ULIP of LIC in force now is Pension Plus which has a lock in period of 5 years and all plans to come henceforth will have a lock in period of 5 years.