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.
| Term | Surrender Duration | Charges |
| Less than 10 yrs | 1st year | 12.5% |
| 2nd year | 10% | |
| 3rd year | 7.5% | |
| 4th year | 5% | |
| 5th year | 2.5% | |
| 6th year | Nil | |
| More than 10 yrs | 1st year | 15% |
| 2nd year | 12.5% | |
| 3rd year | 10% | |
| 4th year | 7.5% | |
| 5th year | 5% | |
| 6th year | 2.5% |
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?