How are the benefits of LIC market plus policy calculated?

Question

When will it mature from the first premium payment? What relationship does it have with the market values?

Answer 1

Have a look at the details - Policy Number, Date of commencement, Date of Maturity and Sum Assured, Premium and mode of payment - all mentioned in it.

The units allotted to you will remain the same till the last but the value (NAV-Net Asset Value) will go up/down depending upon the conditions of the market. This means if the stock market index goes up usually the value of your fund also goes up and vice versa.

You are free to surrender it after a period of three years.

It is advisable that one should not mix  up investment and insurance.

Answer 2

Maturity- It will mature as per the maturity period selected. If one want to get some visible benifit from a ULIP, he should hold it for 15+ years. Though it is mis-sold as a short term product (3 or 5 years) by insurance agents & investor is many times not able to recover even the invested amount in 3-5 years due to the charges. Never ever think about any ULIP if your horizon is for less then 15 years.

Now come to benifit. When you pay premium, allocation charges are deducted from your premium & rest is invested in a Fund & you are allocated units. Then to recover various charges, units are deducted on monthly basis. At maturity/surrender, investor get the fund value of remaining units as per NAV.

Because of the charges taken by these insurance companies, I do not like ULIP products & prefere/advice Mutual fund for investment.

Answer 3

5YRS. of minimum period

as market value increases ,value goes up !