One of the biggest news that people heard regarding the insurance industry, is about the insurance big player LIC. According to the changes notified by IRDAI, LIC has recently closed and relaunched several new and old plans. These plans were deactivated on 31st January and were reactivated on 1st February after making some serious and beneficial changes.
The latest changes in LIC plans were seen in the unit-linked insurance plans and some non linked ones as well. None of the planning schemes have changed, but only a few features were re-calibrated.
Major changes in plans – Many changes are introduced in these plans among which some are beneficial to the customers and some to the insurer.
Some major beneficial changes are like:
- No change in plan name & premium of any scheme
- Grace period is 30 days hereafter, instead of 30 days, not less than 1 month
- Premium waiver benefit rider can be given in all the plans on minor lives
- The revival period extension as it is 5 years instead of 2 Years
- Withdrawal limit of the pension plans has been increased till 60%.
- The surrender period decreased from 3 years to 2 years
- Loan period are decreased from 3 years to 2 years, which brings significant benefits for the customers.
- Surrender value norms have changed as well, as now the policyholders will get 30 percent of the premium paid minus any survival benefit as surrender value after 2 years.
- After three years, the surrender value will be 35 percent of premium minus survival benefits paid.
- Term rider and accident benefit rider are not available in single Premium Endowment & Bima Bachat plans.
- Bima Bachat maximum age restricted to 50 years.
- In unit-linked plans, partial withdrawal is allowed up to three times. However, the maximum withdrawal limit is 25 percent of the total fund at that particular time. However, this benefit is not included in the group lined plans. Also now in the pension plans, the guarantee on the maturity proceeds will be optional and can be decided by the policyholder
