LIC Flexi Plus: An ULIP that can help save tax

Business

oi-Sunil

By Sunil Fernandes

Published: Monday, March 4, 2013, 12:24 [IST]

India's largest life insurer Life Insurance Corporation (LIC) introduced the LIC Flexi Plus earlier this year. Nothing extra ordinary in this scheme, which is yet another unit linked insurance plan (ULIP).

LIC Flexi Plus offers you the choice of debt as well equity, under the scheme. As is the case, the debt scheme will invest in debt that would include a mix of government securities, corporate debt and money market instruments. The equity exposure has been capped at 25 per cent, hence, one cannot expect extra ordinary gains from the debt scheme.

Being an ULIP the scheme offers you the section 80C tax benefit. According to LIC, this Unit Linked Insurance Plan provides a lumpsum benefit on death and also maturity benefits, irrespective of the survival of the policy holder.

As far as payment is concerned you can make monthly, quarterly, half yearly and yearly payments.

Key benefits under this plan are:

1) Flexibility to choose the policy term

2) Flexibility to choose the premium paying mode as per your convenience

3) Flexibility to choose from 2 fund types to suit your investment needs

4) Flexibility of partial withdrawals to meet your emergency needs

5) Payment of Premiums: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy.

This scheme is another ULIP and does not have many extraordinary features. If you feel you need to get tax benefits along with a decent insurance coverage, go for the scheme. It's also time of the year when you do your tax planning, so, if you have not taken an ULIP, you can buy this one.

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