Life Insurance Corporation of India (LIC) is known for giving excellent returns to investors through its various plans. If you are also looking for a safe and good return investment option, then this scheme of LIC can be beneficial for you.
By investing in some of the schemes of LIC, you get good returns and the investment amount is also safe.
Actually, SIIP is a Unit Linked Insurance Plan (ULIP), in which you get insurance coverage along with your investment. The returns in it are based on the performance of the stock market, so it comes with some risks, but with it you get the benefit of high returns and insurance protection. Let’s know the important information related to this plan and its benefits.
LIC SIIP: The best combination of insurance and investment
You get four fund options under LIC’s SIIP plan:
- Bond Fund
- Balanced Fund
- Safe Funds
- Growth Fund
Each of these fund options has its own risk profile. The highest returns are available in growth funds, in which up to 80% of the investment is made in the stock market. Although, this also involves market risk, the return potential is quite high.
Money will double…
Suppose, you have invested ₹1,00,000 every year for a period of 10 years under LIC’s SIIP plan. With this investment, you choose a growth fund, whose NAV growth is expected to be 15%. In 10 years, your total investment will be ₹10,00,000, and you are expected to get ₹19.3 lakh at maturity. This is just a potential calculation, which will depend on the market performance. This plan is available for different tenures of 10, 15, 20 and 25 years.
Suppose, if you take a SIIP plan for a period of 10 years and choose the growth fund option. Under this plan, if you deposit Rs 100,000 every year, a total of Rs 10,00000 will be deposited in 10 years. At maturity, you will get a total of Rs 19.3 lakhs considering the NAV growth of 15 percent. However, this is a probable calculation.
For SIIP plans:
- The policyholder’s age should be a minimum of 3 months and a maximum of 65 years.
- It also provides accidental death benefit rider and partial withdrawal facility.
LIC’s SIIP plan is a great way to grow your investments and secure your future. If you want to invest for the long term and also need insurance coverage, then this plan can be a good option for you.
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