LIC SIIP Policy (Plan No. 852)
LIC SIIP Plan no. 852 is a new ULIP strategy launched on 2nd March 2020. It is the second ULIP scheme launched by LIC in the year 2020. SIIP stands for System Investment Insurance Plan. It is a unit-linked life insurance policy which also adds features like regular premium, non-participating and individual life insurance cover that proposes insurance cum investment cover throughout the term of the policy.
What is a ULIP plan?
ULIP stands for Unit Linked Insurance Plan. It is a product of the combination of life insurance and investment. In other words, under this plan, the total premium that you pay gets divided into two parts. One goes to your life insurance and the other gets added to your investment, and you get to decide which kind of fund you want to invest into.
You get four options to choose from under this scheme, such as:
a) Bond Fund
b) Secured Fund
c) Balanced Fund
d) Growth Fund
Eligibility benchmarks of LIC SIIP policy (plan 852) :
● Minimum age at entry is after completion of 90 days
● Maximum age at entry is 65 years (nearest date of birth)
● The minimum policy term is 10 years
● The maximum policy term is 25 years
● Minimum maturity age is 18 years
● Maximum maturity age is 85 years
● Minimum sum assured- If you pay a value monthly then you have to pay INR 4,000. You have to settle on INR 12,000 for quarterly agreement, INR 22,000 for half-yearly and INR 40,000 for annually
● Maximum sum assured: No limit
Partial Withdrawal: Subject to a balance of 3 annualised premium in the fund a certain percentage of the fund may be surrendered.
Guaranteed Addictions: A percentage of annual premium on completion –
6 years- 5%
10 years- 10%
15 years- 15%
20 years- 20%
Maturity benefits: It summarises the unit fund value along with the total amount of mortality charges deducted during the policy term altogether.
Lock-in period: 5 yrs
Benefits of this policy:-
a)Maturity Benefit- An amount equal to the Unit Fund Value will be payable to you on the Life Assured surviving the stipulated date of maturity.
b)Death Benefit- If the provided policy is in force after your death before the date of maturity (including the grace period), then, the following scenarios may occur:
i) If you die before the date of commencement of risk- An amount equal to the Unit Fund Value will be paid to your beneficiary.
ii) If you die after the date of commencement of risk- An amount equal to the highest of the following will be payable-
● Basic Sum Assured lessened by Partial Withdrawals which were made during the immediate two years preceding the date of death or Unit Fund Value or 105% of the aggregate premiums received till the Date of Death which gets lowered by Partial withdrawals made during the immediate two years coming before the date of death.

[Basic Sum Assured is equal to 10 times the Annualised Premium in case of the age of entry of below 55 years and Basic Sum Assured is equal to 7 times of Annualised Premium in case of the age of entry of 55 yrs and above.]
If any Guaranteed Addition is made after the date of death (in case of delay in intimation of death claim), it should be recovered from the Unit Fund. The benefit of death should be payable either in lump sum amount as specified above or in instalments if the Settlement Option is opted for.
c)Refund of Mortality Charge- If you survive the stipulated date of maturity, (provided all due prelims under the policy have been paid by you), an amount identical to the total amount of mortality charges to be taken away. The amount which gets deducted in respect of life insurance cover, you have to pay that amount along with the Maturity Benefit.
Due to underwriting decisions and tax charges levied on the mortality charges (if any), the total amount of mortality charges will not include any extra amount chargeable under the policy. And also, the refund of mortality charge should not be payable in case of a surrendered or discontinued policy.
d)Guaranteed Additions- Guaranteed Additions acts as a percentage of one Annualised Premium should be added to your Unit Fund after actualization of a limited duration of policy years (provided all due premiums should have to be paid by you and the policy is in force).
Based on NAV of the underlying fund type, the guaranteed addition which was allocated should be converted to units as on the date of such addition and should be credited to the Unit Fund of yours. Guaranteed addition should be credited on the date of revival of the policy for all policies that are not in force, but revived subsequently (provided all due premiums have been paid by you as decided at the commencement of the policy).
However, if any guaranteed addition gets added afterwards to the date of passing away (in case of delay in intimation of death claim) then you can reclaim the value from the Unit Fund.
e)Rider Benefits- Under this policy, LIC’s Linked Accidental Death Benefit Rider can be opted for, even after the policy subject has been issued to the applicable terms and conditions by your nominee. As soon as your eligible nominee opts for the insurance, then the available version of Linked Accidental Death Benefit Rider should be applicable by him/her under the policy.
Exclusions under the policy:
Suicide exclusion-
In case you commit suicide within 12 months from the date of commencement of your policy or from the date of revival of the policy, your nominee or beneficiary should be entitled to the Unit Fund value as available on the date of intimation of death along with the death certificate.
Any other claim by this policy will not be entertained by the Corporation and the policy should terminate. Any charges excluding the Fund Management Charges recovered after the date of death should be added back to the fund value as available on the date on which death was reported along with the death certificate.
Any guaranteed addition added subsequently to the date of death (if death is not reported) should be recovered from the Unit Fund.
(N.B.- This clause should not be applicable in case of age at entry/age at the revival of the life assured is below 8 years.)

Additional Benefits-
a)A grace period of 15 days will be entitled to you if you choose a monthly premium and a grace period of 30 days in quarterly, half-yearly and yearly premium.
b)An active policy can be surrendered any time during the policy term.
c)An abandoned policy should be revived within a revival period of 3 years from the date of the first unpaid premium or up to the date of the maturity, whichever is earlier.
d)If you don’t like the terms and conditions of the policy, you can return it to the corporation within 15 days (In some case 30 also). The initial 15 days is known as the Free Look Period.
e)During your policy term, you can swap between any fund types. Four switches are allowed free of charge within a given policy year. If more than that, there is a charge of Rs.100 per switch.
You can partially withdraw the units anytime after the fifth policy anniversary (provided all