LIC SIIP Plan No. 752

Are You Looking for Life Cover Along with Market-Linked Wealth Creation?

If you have been searching for a reliable market linked insurance plan LIC provides, you have arrived at the right place. Welcome to your trusted local guide. Today, we are bringing you a comprehensive LIC SIIP review and an educational guide on a highly dynamic Unit Linked Insurance Plan: the LIC SIIP Plan No. 752.

Let us explore exactly how this LIC ULIP plan works, the charges involved, the mandatory lock-in periods, and how to decide if this market-linked strategy aligns with your long-term financial goals.

What is LIC SIIP Plan 752?

LIC's SIIP (Systematic Investment Insurance Plan) is a Non-Participating, Linked, Life, Individual, Savings Plan. To break down these terms in simple English:

• Non-Par (Non-Participating): This policy does not share in the traditional yearly profits or bonuses of the corporation.
• Linked (ULIP): Your premium money is utilized to purchase units in market funds. The Net Asset Value (NAV) of these units will go up or down based on the daily performance of the stock and bond markets.

The primary objective of this plan is to offer a combination of life insurance cover and active savings throughout the term of the policy.

How a ULIP Works (Simple Explanation)

If you are new to ULIPs, here is how they function. When you pay your regular premium, LIC first deducts a specific "Premium Allocation Charge". The remaining balance is then invested into an investment fund of your choice.

Once your money is invested, it buys "units" of that fund at the current daily price (NAV). Every month, LIC will deduct certain charges to maintain your life insurance cover (called the Mortality Charge) and administer the policy. They do this by simply canceling a small number of units from your fund. Over the years, if the stock market performs well, the NAV of your units increases, thereby growing your overall wealth.

Key Features of the Plan

The LIC SIIP Plan 752 details reveal several unique features designed for active investors:

• Life insurance cover is actively maintained throughout the entire policy term.
• Refund of Mortality Charges: If you survive the policy term, the mortality charges deducted for your life cover are refunded to your fund.
• Guaranteed Additions: A specific percentage of your annualized premium is added to your unit fund at the end of specific policy years to boost your wealth.
• Choice of Investment Funds: You have the flexibility to choose the type of investment fund based entirely on your personal risk appetite.
• Partial Withdrawals: Allowed after the mandatory 5-year lock-in period to take care of emergency liquidity needs.

Fund Options: Tailor Your Risk

You have the option to choose between four distinct investment funds, depending on how much risk you are willing to take:

1. Bond Fund: This fund provides a relatively safe and less volatile investment option. It invests not less than 60% of your money in Government or Corporate Debt and 0% in equities. It carries a "Low Risk" profile.
2. Secured Fund: This fund aims to provide steady income by investing 45% to 85% in Debt and 15% to 55% in Listed Equity Shares. It carries a "Lower to Medium Risk" profile.
3. Balanced Fund: This fund provides a balanced mix of income and growth, investing 30% to 70% in Debt and 30% to 70% in Equity Shares. It carries a "Medium Risk" profile.
4. Growth Fund: This fund is aimed at long-term capital growth, investing heavily in equities (40% to 80%). It carries a "High Risk" profile.

You also have a Switching Option that allows you to shift your entire fund value between these four funds. LIC provides 4 free switches during a given policy year.

Eligibility Conditions

To begin your wealth creation journey with this policy, you must meet the following criteria:

• Minimum Age at Entry: 30 Days (completed).
• Maximum Age at Entry: 65 years (nearer birthday).
• Policy Term: Between 10 Years and 25 Years.
• Premium Paying Term: Same as the Policy Term.
• Minimum Premium: ₹42,000 for Yearly mode, ₹21,000 for Half-yearly, ₹10,500 for Quarterly, and ₹3,500 for Monthly (NACH).
• Maximum Premium: No Limit, subject to underwriting guidelines.

Understanding the Benefits (Survival and Death)

The LIC SIIP plan provides comprehensive benefits designed to protect your family while rewarding your survival.

Maturity Benefit

If you survive to the end of the policy term, the maturity benefit payable to you will be an amount equal to your Unit Fund Value as on the date of maturity. Your returns depend entirely on the final NAV of your chosen funds.

Refund of Mortality Charges

A massive advantage of this plan is the refund feature. On surviving the stipulated date of maturity, provided all premiums are paid, an amount equal to the total mortality charges deducted during the policy term shall be added back and payable along with your Maturity Benefit. (This excludes extra underwriting charges and tax charges).

Death Benefit

In the unfortunate event of the Life Assured's death after the commencement of risk, the policy protects the family. The Death Benefit payable shall be the highest of the following three amounts:

1. The Basic Sum Assured (reduced by any partial withdrawals made in the 2 years preceding death).
2. The Unit Fund Value as on the date of intimation of death.
3. 105% of the total premiums received up to the date of death (reduced by any partial withdrawals made in the 2 years preceding death).

Guaranteed Additions

To reward long-term financial discipline, LIC adds Guaranteed Additions to your Unit Fund at the end of specific policy years. These additions are calculated as a percentage of one Annualized Premium and are credited to your chosen fund as new units:

• End of Year 6: 5% of Annualized Premium.
• End of Year 10: 10% of Annualized Premium.
• End of Year 15: 15% of Annualized Premium.
• End of Year 20: 20% of Annualized Premium.
• End of Year 25: 25% of Annualized Premium.

Please note that these Guaranteed Additions will be reduced proportionally if you have made any partial withdrawals.

Detailed Explanation of Charges

Because this is a ULIP, you must be fully aware of the charges deducted from your premiums and fund value.

• Premium Allocation Charge: Deducted upfront from your premium. 1st Year: 8.00% (offline) / 3.00% (online). 2nd to 5th year: 2%. 6th Year onwards: 3.00% (offline) / 1.00% (online).
• Mortality Charge: The cost of your life insurance cover. It is age-specific and deducted at the beginning of each policy month by canceling units.
• Fund Management Charge (FMC): Levied as a percentage of the value of the assets. It is 1.35% p.a. of the Unit Fund for all four available funds.
• Policy Administration Charge: This charge is levied from the 6th policy year onwards at the rate of ₹150 per month, escalating at 5% p.a. from the 7th year, subject to a maximum of ₹500 per month.
• Switching and Partial Withdrawal Charges: After your 4 free switches, a flat charge of ₹100 per switch applies. For partial withdrawals, a flat charge of ₹100 is deducted per transaction.
• Tax Charges: Statutory taxes, such as GST, are levied on all the above charges as per prevailing tax laws.
• Miscellaneous Charge: A flat ₹100 charge is levied for alterations like changing your premium payment mode during the policy term.

Partial Withdrawal Rules

Once the 5-year lock-in period is over, the plan offers liquidity. You may partially withdraw units to take care of emergency needs, subject to the following rules:

• In the case of minors, partial withdrawals are allowed only after the Life Assured turns 18.
• The maximum amount you can withdraw is a percentage of your fund value: 20% (years 6-10), 25% (years 11-15), 30% (years 16-20), and 35% thereafter.
• You must maintain a minimum balance. The remaining balance after withdrawal cannot fall below 3 Annualized Premiums.

Surrender, Discontinuance, and Revival Rules

• Surrender During Lock-in Period: If you surrender the policy before 5 years, a Discontinuance Charge is applied. Your remaining Unit Fund Value is forcefully transferred to a "Discontinued Policy Fund." This fund earns a minimum guaranteed interest (currently 4% p.a.). You will only receive this money after the 5-year lock-in period is complete, and your life cover ceases immediately.
• Surrender After Lock-in Period: If you surrender after 5 years, your full Unit Fund Value is paid to you immediately without any discontinuance charges.
• Discontinuance of Premiums: If you miss a premium, the policy enters a 30-day grace period (15 days for monthly mode). If unpaid, the policy discontinues. If this happens during the lock-in period, the fund moves to the Discontinued Policy Fund. If it happens after 5 years, it converts into a reduced paid-up policy.
• Revival: A discontinued policy can be revived within a revival period of 3 years from the date of the first unpaid premium, subject to clearing arrears and underwriting approval.

Loan Facility

Please note that no loan facility is allowed under the LIC SIIP Plan 752. If you need emergency funds, you must rely on the partial withdrawal option after the 5-year lock-in period.

Who Should Buy This Plan?

The LIC SIIP Plan is highly suitable for investors who have a moderate to high-risk appetite and a long-term investment horizon (10 to 25 years). If you actively want your savings tied to the equity and debt markets while simultaneously securing a life cover for your family, this plan provides a structured, disciplined way to invest.

Who Should Avoid This Plan?

If you are a conservative investor who panics when the stock market dips, you should strictly avoid this plan. Furthermore, if you are looking for a reliable retirement solution that provides a guaranteed, lifelong monthly payout without market risk, a ULIP is not the right tool. You should instead look into traditional endowment plans or pure annuity plans.

Local Advisory Section: Serving Nohar and Surrounding Areas

If you are seeking expert advice in Nohar, Hanumangarh, Rajasthan – 335504, we are here for you. If you are reviewing your LIC policy in areas such as Nathwania or Gogameri, we understand that discussing market-linked investments requires careful, face-to-face planning. We provide dedicated door-to-door advisory services to families in areas like Barwali and Deeplana.

We know that traveling into the city for complex insurance paperwork can be time-consuming. That is why we provide localized support to ensure that families in these vital agricultural areas, including Nethrana and Ramgarh, can easily understand their ULIP options, manage their premium payments, and secure their financial futures right at their doorstep.

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