LIC International is offering a unique plan that combines life insurance and investment benefits, according to its top official.
The Flexi Wealth Builder Plan, an individual unit-linked whole-life policy, stands out with its limited payment terms of 10, 15, or 20 years.
The plan allows policyholders to start investment with a monthly premium of $300 and maximum without upper limit to effectively manage and grow their wealth through investments in various market-linked funds, with the investment risk borne by the policyholder.
It is designed to provide access to a wide range of US dollar-based funds across different asset classes, and the plan also offers provisions for additional premium top-ups.
LIC International chief executive DP Pattanaik said the plan offers significant benefits, such as a death benefit that pays out 101 per cent of the fund value to the nominee in the event of the policyholder’s passing.
“While there is no maturity benefit post a fixed term, policyholders can withdraw 100pc of the fund value after one year, subject to applicable surrender charges,” said Mr Pattanaik.
“Additional features include fund switching, allowing policyholders to change their investment funds without limits or fees, and the option for top-up investments.”
The plan is available to individuals from newborns to those aged 70.
“For liquidity, policyholders can make partial withdrawals after one year, with a minimum fund value requirement, or surrender the policy after one full year to receive the fund value minus any charges,” said Mr Pattanaik.
“The plan offers multiple investment options: equity funds for higher returns, debt funds for stable returns, and balanced funds for a mix of both.
“Customers can choose their preferred funds based on their risk tolerance and long-term financial goals.”
He explained that understanding the associated charges is crucial for potential investors. These include establishment, policy management, administration and fund management charges, all of which remain fixed throughout the policy term, with adjustments possible upon a 60-day notification.
With no charges for fund switching and no mortality charges, the plan ensures transparency and control for customers through an online Unit Linked Insurance Plan (ULIP) portal, allowing them to monitor and manage their investments.
Mr Pattanaik emphasised that the Flexi Wealth Builder Plan combines life insurance and investment benefits, providing financial security for loved ones while helping individuals achieve their financial objectives.
Fund switching enables policyholders to adapt their investments according to market conditions, and the top-up option allows for enhanced contributions as financial needs evolve.
This plan is particularly suitable for investors with medium to long-term goals, accommodating various risk tolerances and life stages.
Mr Pattanaik advised that early investment maximises growth potential, especially given potential charges for early withdrawals.
As a unit-linked product, the plan offers the potential for higher returns by investing in diversified asset classes managed by experienced fund managers, allowing policyholders to adjust their portfolios based on market performance.
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