LIC Unit Linked Insurance Plans for minimum 10 years henceforth
LIC Unit Linked Insurance Plans for a minimum of 10 years henceforth: 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 LIC Unit Linked Insurance Plans.
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 policyholders 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 newcomers, and providing security to the policyholders.
So now it’s very certain that most of the Unit Linked products of LIC would be withdrawn from the market and new products or policies would be launched soon.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 a child’s financial planning.
- Health Protection Plus – ULIP cum Health Insurance
- Jeevan Saathi Plus – joint-life ULIP plan for couples.
@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!
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.
@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.
Does this mean that it wont be allowed to withdrow the fund after 3 years now?