On Monday, the Life Insurance Corporation of India ( LIC ) introduced a novel individual life insurance plan called Index Plus. This unit-linked, regular premium plan provides a combination of life insurance cover and savings over the policy’s duration, as outlined in a recent statement by LIC.
The plan incorporates guaranteed additions, calculated as a percentage of the annualized premium, which will be infused into the unit fund upon completing specific policy years. These additions will be used to acquire additional units, enhancing the overall value of the policy.
Additionally, the Index Plus plan offers policyholders the flexibility of partial withdrawal from the units. This option becomes available after a five-year lock-in period, subject to certain conditions. This feature provides policyholders with the opportunity to access a portion of their invested units when needed, adding an element of financial flexibility to the plan
