Unit Linked Insurance Plan Revised

Unit Linked Insurance Plan (ULIP) Revised Terms:

From September 01, 2010, all ULIP Plans will have the following features:

Term:
The minimum term for the ULIP plan would be 10 years.

Locking Period for Top Up:
All Top-up premium lock-in period would be 3 years. Also, Top-up premium not allowed during the last 3 years of maturity.

Compulsory Insurance:
Insurance cover is mandatory including Pension Plan Hence there will be no ULIP without risk cover.

Pension ULIP:
Withdrawals will be not allowed before maturity in the case of the Pension Plan.

Assignments and Loan:
Assignments and loans are not available in ULIP Plan.

Top-Up Premium:
Risk cover is mandatory for top-up premium and will be treated as a single premium for each time you top up.

Surrender:
Surrender before 6 years will attract a penalty.

TermSurrender DurationCharges
Less than 10 yrs1st year12.5%
 2nd year10%
 3rd year7.5%
 4th year5%
 5th year2.5%
 6th yearNil
More than 10 yrs1st year15%
 2nd year12.5%
 3rd year10%
 4th year7.5%
 5th year5%
 6th year2.5%
Also Read  ULIP vs. Mutual fund
  1. Laxmikant Rajaram Naik July 1, 2010 at 2:05 pm

    Dear sir/madam
    I am very dissapointed about the LIC’s ulip plan,which i started in 2006 for 3 years. As per agent we can stopped the premium and wait for multiple amount in next period of years.Suddenly i recieved letter from LIC’s office stating that my policy was lasped.As i am regular having different types of LIC’s policy and encouraging my friends to be a member of LIC, it hurt all of us very very much. How to trust LIC in future?
    As i have this ulip plan policy of my two children and the outcome is worthless. whom to be blamed the agents or LIC officers?Finally we are the suffers?

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