
Life Insurance Corporation (LIC) introduced a ULIP based investment with insurance plan called LIC Pension Plus. The new LIC Pension follows the strict rules by IRDA that come into effect from September 1 2010. LIC Pension Plus plan is designed in such a way that to accumulate wealth during a persons lifetime until pension, and let him live in a tension free life after the retirement. The minimum premium period of the policy is 10 years and maximum 40 years. At the end of the policy term, the fund value will be paid with guaranteed maturity benefits, either as a lump sum or in the form of installments. Unfortunately there is no life cover with this policy. However, in the event of any mishap during the policy term, the exiting fund value will be cashed to the relatives. The LIC Pension Plus plan assured a 4.5% yearly return as per IRDA norms.
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