LIC Gratuity Plus Summary:
LIC GRATUITY PLUS PLAN is a unit-linked plan (ULIP) for the management of Gratuity Funds. GRATUITY PLUS PLAN is suitable for companies who desire to entrust Gratuity Fund management to an insurer and wish to have the flexibility of choice of investments. This plan is different from the traditional Cash Accumulation Plan as the returns under the Plan are linked to the performance of the chosen fund.
1. GRATUITY PLUS PLAN comes to you from India’s leading insurer backed by more than 16 crore policyholders and an asset size of around Rs 4,50,000 crores.
2. Choice of 4 funds to meet various risk appetites.
i) Bond Fund ii) Income Fund iii) Balanced Fund iv) Growth Fund
3. Flexibility in structuring the Gratuity Costs based on the performance of Fund.
4. Facility of Switching between various funds. One switch every year is free of cost.
5. It provides for life insurance cover at a very minimal cost. Cover can be equal to the gratuity payable for anticipated service. Alternatively, the company can also choose for each member a uniform level of cover equal to a minimum of one month’s salary or more.
6. There is no bid-offer spread under this scheme.
7. Scheme can be surrendered at any time. There is no surrender penalty imposed.
8. Hassle-Free Scheme Administration.
9. Assistance for the execution of legal documents and installation of the scheme.
Special Features of Gratuity Plus Plan.
If the contributions are not received on the policy anniversary the policy becomes paid up. However, the term Assurance Cover will be provided to the members by way of Auto Cover for a period of five years from the policy anniversary for which the contributions have not been received from the policyholder. The Term Assurance cover equal to Future Service Gratuity or number of months salary subject to a minimum of one month salary of members as opted by the policyholder will be provided as Auto Cover for which the mortality charges together with service tax if any, will be deducted by canceling an appropriate number of units from the Unit Account. At the end of five years from the policy anniversary for which the contributions have not been received from the policyholder if the policy is still in paid-up condition the policy shall be compulsorily terminated.
For more details, please download the pdf document here –> LIC Gratuity Plus
The above is the product summary giving the key features of the plan. This is for illustrative purposes only. This does not represent a contract and for details please refer to your policy document.
Update: LIC Gratuity Plus Plan Has Been Discontinued.