LIC’s SIIP plan is one of the best alternatives for investors looking for high yield investment options. Unlike traditional ULIP plans, this plan does not involve loan payments, but rather allows policyholders to withdraw their money whenever they want. It is an excellent choice for investors who understand the share market and do not mind taking on some risk.
The LIC SIIP charges a premium allocation charge. The premium is paid upfront, after which the insurer allocates a certain amount for the fund. The charge is as high as 8 percent during the first policy year, but falls to three percent after the sixth year. The premiums paid online are not subject to this charge.
The SIIP plan offers four types of investment funds. Individuals can invest in any one of these funds. The Sum Assured can be as low as Rs 1,000, or as high as Rs 200,000. The policy can be paid in monthly, quarterly, half-yearly, or annually. The policy term is similar to the premium paying term.
The LIC SIIP plan offers a combination of the benefits of investing with the security of insurance protection. The plan provides a death benefit to a designated beneficiary in the event of your death. Moreover, SIIPs also offer guaranteed additions to the sum invested.