LIC’s SIIP (Plan no 852)

Who are the potential customers:

a) Investors with a relatively longer term wealth creation goal- LICs SIIP is ideal for
individuals with a longer period of investment horizon along with risk cover.
b) Investors with varying risk profile- 4 types of fund option available with equity
component ranging from 0 to 80 percent. So caters to all type of investors starting from
conservative investors to investors with high risk appetite.
c) Market savvy investors who want to track their investments- Option to switch
between funds according to the market volatility and risk taking attitude of the investors
thereby maximizing returns.
d) Investors starting from age as low as 90 days to as high as 65 years who has a
steady income and who want disciplined investment in stock market in a systematic way
under the expertise of dedicated fund manager along with life insurance protection (with the
maximum risk coverage till 85 years ).

Unique Selling Point of LIC’s SIIP

1. Market linked returns through systematic investment along with insurance coverage with
Yly/Half yearly/Quarterly and Monthly(NACH) mode of payment.
2. Lower Basic SA for higher age- 7 times of Annualised Premium for age 55 years and above(
10 times for Ages below 55 years) resulting in higher investible amount with probability of
more investment returns
3. Flexibility-

a) Option to choose between any 4 funds based on risk profile

b) Switch between any 4 funds with 4 switches allowed free of charge during a given policy
year according to market or interest rate volatility to maximize returns
c) Facility to partially withdraw the units at any time after the fifth policy anniversary
provided all due premiums till date of partial withdrawal have been paid subject to certain
conditions and charges.
d) Settlement Option – _Option available to receive the death proceeds in installments.
e) Option to opt for Accidental Death benefit Rider
f) Option to purchase both online and offline
4. Transparency -a)All the charges on policy like premium allocation charges. Mortality
charges, Fund Management charges etc. are declared in advance to increase transparency

b) Issue of Unit Statement-Periodical statement of accounts to be issued to policyholders each

year disclosing the actual charges levied and the fund value at the beginning and end of the
year.
5. Low Premium Allocation charges- For Offline sale it is 5%in 1st year, 5.50% from 2nd to 5th
year and 3% thereafter. , for online sale it is 3% in 1st year,2% in 2nd to 5th year and 1%
thereafter.
6. Mortality charge- During the policy term mortality charge will depend upon the Sum at
Risk which shall be the highest of a) BSA in case of in force policies, or Paid up S.A in case of
reduced paid up policies b) Unit Fund Value c) 105% of total premium received less Unit Fund
Value.
7. Refund of Mortality charge- Provided all due premiums under the policy have been paid ,
on LA surviving the stipulated Date of Maturity , an amount equal to the total amount of
mortality charges deducted in respect of life insurance cover shall be payable along with
maturity benefit..
8. No policy administration charge under the plan.
9. Guaranteed Additions- G.A as a percentage of Annualised Premium shall be added to the
Unit Fund on completion of specific duration of policy years.
10. Nil Bid/Offer spread.
11. Liquidity – _a) Partial withdrawal b) Surrender
12. Discontinued policy Fund if the policy is discontinued during the 5 years lock in period
and reduced paid up policy if the policy is discontinued after a grace period of 5 years lock in
period with an option revive the policy during the revival period of 3 years.
13. Assignment allowed under the plan.
14. Unique Agency Commission with higher commission rate for higher premium band and
longer durations. Bonus commission at the rate of 40% of FYC. Development Officers credit is
20% of FYP.