LIC SIIP Plan
The LIC SIIP Plan is a plan where you save money and get life insurance together. It helps you grow your money through investment and also protects your family financially in case something happens to you.
What is the LIC SIIP Plan?
The LIC SIIP Plan is a unit-linked insurance plan that offers both investment and life cover. In LIC SIIP, the term SIIP stands for Systematic Investment Insurance Plan.
You pay regular premiums, which are invested in market funds of your choice. It grows your money over time and helps you to stay financially protected.
In case of death, the nominee receives the highest of the sum assured or fund value. On maturity, you get the total fund value along with added benefits. It is ideal for long-term wealth creation with protection.
Key Highlights of LIC SIIP Plan
| Feature | Details |
|---|---|
| Plan Type | Unit Linked Insurance Plan (ULIP) |
| Main Benefit | Investment + Life Insurance in one plan |
| Returns | Market-linked (depends on fund performance) |
| Fund Options | Bond, Secured, Balanced, Growth Funds |
| Life Cover | Highest of Sum Assured / Fund Value / 105% of premiums |
| Guaranteed Additions | Added at 6th, 10th, 15th, 20th, 25th year |
| Premium Payment | Yearly, Half-yearly, Quarterly, Monthly |
| Policy Term | 10 to 25 years |
| Partial Withdrawal | Allowed after 5 years |
| Lock-in Period | 5 years (no withdrawal allowed) |
| Fund Switching | Allowed during policy term |
| Ideal For | Long-term investment with insurance protection |
Eligibility Criteria for LIC SIIP Plan
| Criteria | Details |
|---|---|
| Minimum Entry Age | 90 days (completed) |
| Maximum Entry Age | 65 years (nearer birthday) |
| Minimum Maturity Age | 18 years (completed) |
| Maximum Maturity Age | 85 years (nearer birthday) |
| Policy Term | 10 to 25 years |
| Premium Paying Term | Same as policy term |
| Minimum Premium | Rs 40,000 (Yearly), Rs 22,000 (Half-yearly), Rs 12,000 (Quarterly), Rs 4,000 (Monthly) |
| Maximum Premium | No limit |
| Sum Assured (Below 55 yrs) | 10 times annualized premium |
| Sum Assured (55 yrs & above) | 7 times annualized premium |
How Does the LIC SIIP Plan Works?
Pay premium Invest in funds Money grows Get protection Receive benefits
Pay Premium Regularly
You pay premiums monthly, quarterly, half-yearly, or yearly as per your choice.Choose Investment Fund
You select a fund (Bond, Secured, Balanced, or Growth) based on your risk level.Money Gets Invested
After deducting charges, your premium is used to buy units in the chosen fund.Fund Value Changes
Your investment grows or falls depending on market performance (NAV).Life Cover Continues
During the policy term, your family stays financially protected.Benefits at the End or in Case of Death
On maturity: You will get the total fund value.On death: Nominee gets the highest of sum assured, fund value, or 105% of premiums.
Benefits of LIC SIIP Plan
Financial Protection for Family
In case of the policyholder's death, the nominee receives the highest of sum assured, fund value, or 105% of total premiums. This ensures strong financial security for your loved ones.
Wealth Creation Opportunity
Your premiums are invested in market-linked funds, helping your money grow over time based on fund performance.
Maturity Benefit with Extra Advantage
On survival till maturity, you receive the full fund value along with a refund of mortality charges, increasing your overall returns.
Guaranteed Additions Boost Returns
Additional units are added at specific intervals during the policy term, enhancing your investment value.
Flexibility to Switch Funds
You can switch between different fund options depending on market conditions and your risk preference.
Liquidity Through Partial Withdrawals
After 5 years, you can withdraw a portion of your funds to meet financial needs without closing the policy.
Option for Death Benefit Instalments
Instead of a lump sum, your family can choose to receive the death benefit in instalments for better financial planning.
Who Should Buy the LIC SIIP Plan?
People from the list below are advised to buy the LIC SIIP plan:
LIC SIIP Plan vs Other LIC Plans
| Feature | LIC SIIP Plan | Other LIC Plans (Traditional) |
|---|---|---|
| Plan Type | ULIP (Investment + Insurance) | Mostly Savings and Endowment Plans |
| Returns | Market-linked (can be higher but risky) | Mostly fixed or bonus-based (stable but lower) |
| Risk Level | Moderate to High | Low risk |
| Flexibility | Fund switching available | Limited flexibility |
| Lock-in Period | 5 years | Usually long-term with surrender charges |
| Transparency | NAV-based (you can track value) | Less transparent (bonus declared later) |
| Liquidity | Partial withdrawal after 5 years | Limited withdrawal options |
| Charges | Multiple charges (ULIP structure) | Lower visible charges |
| Best For | Wealth creation + insurance | Safe savings + guaranteed returns |
How to Buy LIC SIIP Plan?
To buy the plan online, follow these steps :
Step 1.
Visit the official LIC website.
Step 2.
On the homepage, select "Buy Policies Online" or choose the plan category (such as Endowment or Money Back).
Step 3.
Pick the specific plan you want to purchase.
Step 4.
Click on "Learn More" to access the application page.
Step 5.
Complete the form and upload the required documents.
Step 6.
Submit the form and pay online.
Identity proof such as Aadhaar Card, PAN Card, Passport, etc.Address proof, including Aadhaar, Driving Licence, Voter ID, etc.Age proof (Birth certificate, school certificate, passport, etc.)Recent passport-size photographBank details (cancelled cheque or account details)PAN Card (for KYC and financial transactions)
It is a ULIP Plan
LIC SIIP is a Unit Linked Insurance Plan where your premium is used for both investment and life insurance, and the returns depend on market performance.
5-Year Lock-in Period
You cannot withdraw or surrender your money fully or partially during the first 5 years of the policy.
Returns Depend on Market
The value of your investment changes based on the Net Asset Value (NAV), which can go up or down depending on market conditions.
Charges Are Applicable
Various charges like premium allocation, mortality, and fund management charges are deducted from your premium or fund value during the policy term.
Long-Term Commitment
This plan is designed for long-term investment, with a policy term ranging from 10 to 25 years.
Fund Switching Available
You have the option to switch your investment between different funds during the policy term based on your risk preference.
Partial Withdrawal Allowed
You can withdraw a portion of your fund value after completing 5 policy years, subject to certain conditions.
Guaranteed Additions Provided
The plan offers guaranteed additions at specific policy years, which are added as extra units to increase your fund value.
No Loan Facility
This plan does not provide a loan facility against the policy, unlike some traditional LIC plans.
Tax Benefits Available
You may get tax benefits on premiums paid and maturity proceeds as per applicable income tax laws.
Surrender Rules
If you surrender the policy within the first 5 years, your fund value is transferred to a discontinued policy fund and paid only after the lock-in period, while after 5 years, you can receive the fund value immediately.
Charges Under the Plan
The plan includes various charges such as premium allocation charges, mortality charges, fund management charges, switching charges, and withdrawal charges, which are deducted during the policy term.
Optional Benefits (Rider)
You can enhance your coverage by adding an optional accidental death benefit rider, which provides an extra payout in case of accidental death.
Documents Required for LIC SIIP Plan
You need basic KYC documents, age proof, and bank details to buy the plan. This includes:
Things to Know About the LIC SIIP Plan
LIC SIIP is a market-linked plan with flexibility and growth potential, but it requires long-term commitment and risk understanding.
Disclaimer: Squareinsurance does not promote, rate, or recommend any specific insurance company or insurance plan. The above information is for general understanding only. For complete and accurate details, please refer to the official plan brochure.
FAQs
The LIC SIIP Plan is a unit-linked insurance plan that offers both investment and life insurance benefits in one policy.
Yes, the LIC SIIP Plan can be a good option for long-term investment if you are comfortable with market-linked returns.
The LIC SIIP Plan has a lock-in period of 5 years, during which you cannot withdraw your money.
Yes, you can withdraw money from the LIC SIIP Plan after completing 5 policy years, subject to conditions.
On maturity, the LIC SIIP Plan pays the total fund value along with applicable benefits if the policy is active.
No, the LIC SIIP Plan does not provide guaranteed returns as it is a market-linked plan.