LIC Future Plus Calculator

LIC Future Plus is a unit-linked deferred pension plan offered by LIC (Life Insurance Corporation of India) under UIN 512L228V01. It was launched on March 4, 2005, making it a well-established retirement saving option. This plan helps policyholders secure their financial future after retirement by systematically accumulating funds and providing a pension at maturity.

What is LIC Future Plus?

LIC Future Plus is a unit linked deferred pension plan designed to help individuals accumulate a retirement corpus through disciplined savings. It offers the dual benefit of insurance with optional risk cover and investments in market-linked funds. At maturity, the accumulated corpus can be annuitized to provide a regular pension income.

Both regular premium payment and single premium options are available, providing flexibility to policyholders. This plan is suitable for individuals seeking long-term financial security post-retirement with market participation.

Key Features of LIC Future Plus

• Plan Type: Unit Linked Deferred Pension Plan
• UIN: 512L228V01
• Launch Date: March 4, 2005
• Withdrawn Date: The plan is currently withdrawn from new sales, but existing policies remain active.
• Entry Age: Minimum 18 years, Maximum 65 years (nearest birthday)
• Policy Term: Minimum 5 years to maximum as per chosen deferment period (usually up to age 60 or 65)
• Premium Payment: Regular premiums (equal to policy term) or single premium
• Premium Mode: Half-yearly and yearly
• Sum Assured: Minimum sum assured depends on premium value; larger sums assured for higher premiums
• Investment Choices: Policyholders can choose from multiple fund options like Bond Fund, Income Fund, Growth Fund, and Balanced Fund
• Flexibility: Option to take plan with or without risk cover
• Loan: No loan facility available under this plan
• Surrender: Allowed anytime; certain conditions apply regarding charges and fund value
• Pension Benefit: At maturity, policyholders receive pension from the annuity purchased from the accumulated fund

Benefits of LIC Future Plus

• Regular Pension Income: Helps build retirement corpus that converts into a regular pension
• Market-Linked Growth: Fund investments generate returns based on market performance, offering growth potential
• Insurance Cover: Optional life cover along with investment
• Partial Withdrawals: Allowed after the lock-in period (usually 5 years) under certain conditions
• Flexibility in Fund Choice: Multiple fund options to align risk and returns with policyholder preference
• Tax Benefits: Premiums paid and pension income may be eligible for tax benefits under prevailing laws

How LIC Future Plus Calculator Works

The LIC Future Plus Calculator helps potential and existing policyholders estimate:

• The premium amount payable
• Expected maturity corpus based on fund growth projections
• Pension amount from annuity options at maturity
• Impact of policy term, premium amount, and fund option on returns

Inputs Needed for the Calculator

• Age of the Life Assured: Determines eligibility and premium term
• Policy Term / Deferment Period: Number of years premiums will be paid and invested
• Premium Amount and Frequency: Yearly premium amount or single premium option
• Fund Choice: Selection among Bond, Income, Growth, or Balanced Funds
• Commutation Option: Whether the policyholder wishes to take part in a lump sum at maturity
• Date of Policy Commencement: Helps to calculate premiums and maturity date precisely

How to Use the Calculator

1. Enter your age at policy commencement.
2. Choose the policy term or deferment period.
3. Enter your annual premium or lump sum premium.
4. Select the fund option based on your risk appetite.
5. Select if you want to commute (withdraw) one-third of the corpus at maturity or not.
6. Input the policy start date.
7. Click ‘Calculate’ to get the projected maturity corpus and pension amount.

The calculator uses historical fund performance data, applicable charges, and annuity rates to give an estimate. While actual returns may vary, it provides a good approximation for planning.

Important Dates for LIC Future Plus

• Launch Date: March 4, 2005
• Withdraw Date: The plan has been withdrawn from fresh sales (the exact withdraw date is not publicly specified but confirmed as presently unavailable for new policyholders). Existing policies continue without disruption.

Understanding Policy Terms and Conditions

• Lock-in Period: 5 years, during which partial withdrawals are not permitted.
• Surrender Value: After 2 years of premium payment, surrender value is available with no deductions on premium.
• Discontinuance: If premiums stop, the policy may be discontinued, and funds will be transferred to a discontinued policy fund.
• Pension Options: At maturity, the accumulated amount can be commuted (up to one-third as a lump sum), and the balance can be converted to a pension.

Fund Options and Investment Strategy

LIC Future Plus offers four main funds to invest premiums into:

1. Bond Fund: Low risk, investment in government and corporate bonds.
2. Income Fund: Moderate risk with a balanced portfolio of bonds and equity.
3. Growth Fund: Higher risk with a focus on equities for capital appreciation.
4. Balanced Fund: A mix of equity and debt for balanced risk and return.

Policyholders can switch between funds as per their changing risk appetite or market conditions.

Why Choose LIC Future Plus?

• Trusted LIC brand with government backing.
• Combines insurance and unit linked investment.
• Designed for retirement savings with tax benefits.
• Flexible premium payment options.
• Multiple fund choices to suit preferences.
• Option to take plan with or without life cover.
• Systematic pension income post-retirement to meet financial needs.

Frequently Asked Questions

Conclusion

LIC Future Plus (UIN 512L228V01) was a key product for retirement planning launched in 2005. Though no longer available for new customers, it served many policyholders by offering a unit-linked pension plan featuring investment flexibility, insurance cover, and pension benefits.

Using an LIC Future Plus calculator can help understand potential savings and pension income, making retirement planning easier and more transparent.