Life Insurance Corporation of India (LIC) is a trusted name in the Indian insurance sector. Among its many products is the LIC Market Plus I Plan 191, a unit-linked deferred pension plan designed mainly for retirement savings.

Introduction to LIC Market Plus I Plan 191

The LIC Market Plus I Plan 191 is a unit-linked pension plan launched by LIC with the aim to help individuals build a retirement corpus through market-linked investments. The plan allows the policyholder to invest in a combination of funds offering growth potential while providing an option to choose life cover or to do without it.

Key Dates:

• Launch Date: 17 June 2008
• Withdrawal Date: 1 September 2010 (Plan withdrawn from sale by LIC)

Though this plan is withdrawn now, many existing policyholders hold this plan, and understanding the calculator can help them evaluate their policy value and benefits.

What Is a Unit-Linked Deferred Pension Plan?

A Unit-Linked Insurance Plan (ULIP) like LIC Market Plus I link your premiums to market investments such as equity and debt funds. It combines investment and insurance benefits, with a focus on long-term wealth creation, especially for retirement.

• You pay premiums regularly or as a single premium.
• The money is invested in various fund options.
• Returns depend on market performance, reflected by the Net Asset Value (NAV) of the fund units.
• At maturity, the corpus can be used to buy an annuity or pension.

Features of LIC Market Plus I Plan 191

Investment Options

The policy offers several fund options to suit different risk appetites:

• Bond Fund: Low risk with 100% investment in debt instruments.
• Secured Fund: Balanced risk with 15%-55% in equities and 45%-85% in debt.
• Balanced Fund: Medium risk with an equal mix of equity and debt (30%-70%).
• Growth Fund: Higher risk & return potential (40%-80% equities).

Premium Payment

• Regular Premium: Pay annually, half-yearly, quarterly, or monthly (ECS).
• Minimum premium depends on deferment term (e.g., ₹5,000 p.a. for deferment of 20 years or above).
• Single Premium: One-time payment allowed with a minimum of ₹30,000 for deferment of 5 years or more.
• Additional top-up premiums allowed anytime in multiples of ₹1,000 after all regular premiums are paid.

Life Cover and Riders

• Plan available with or without life cover.
• Optional riders such as accident benefit and critical illness benefit.
• Life cover sum assured payable on death during policy term along with fund value.

Vesting and Maturity

• Minimum vesting age: 40 years.
• Maximum vesting age: 75 years (with life cover), 85 years (without life cover).

Fund Management and Switching

• Policyholders can switch between different fund options during the policy term.
• No partial withdrawals allowed during policy term.
• No loans against the policy.

LIC Market Plus I Plan 191 Calculator

The LIC Market Plus I Plan 191 calculator is a tool designed to help potential and existing investors estimate their investment value and maturity benefits.

What Does the Calculator Do?

• Calculates projected fund value based on premium amount, premium payment term, deferment period, fund selection, and assumed returns.
• Shows estimated maturity corpus and possible annuity/pension amount.
• Helps understand the impact of top-ups and fund switches on corpus.
• Aids decision-making by comparing scenarios.

How to Use the Calculator?

1. Enter Your Details:
   • Age at entry.
   • Premium amount and payment frequency.
   • Deferment term (number of years till vesting).
   • Choose fund options (growth, balanced, bond, secured) or a mix.
   • Add any top-ups if planned.
2. Choose Assumed Rate of Return:
   • ULIPs depend on market performance; choose realistic expected returns for selected funds (e.g., 8-12% for balanced funds).
3. Calculate:
   • The calculator will show estimated fund accumulation, maturity benefit, and death benefit (if life cover chosen).

This simplifies choosing the plan parameters and understanding the benefits before investing.

Benefits of LIC Market Plus I Plan 191

1. Flexibility in Investment and Cover

• Option to choose without life cover (pure pension plan) or with life cover.
• Ability to change life cover (decrease allowed).
• Multiple fund options to match risk appetite.

2. Tax Benefits

• The premium paid is eligible for a tax deduction under Section 80C of the Income Tax Act.
• Maturity proceeds may be tax-free under Section 10(10D) based on conditions.
• Tax benefits are subject to current laws.

3. Additional Protection Riders

• Accident benefit and critical illness benefit riders for enhanced safety.
• Provides financial security along with retirement corpus creation.

4. Top-Ups for Extra Corpus

• Allows additional premium payments to boost fund value.
• No limit on top-up amounts; paid in multiples of ₹1,000.

5. Market-Linked Growth

• Exposure to equity and debt funds offers better growth potential than traditional fixed plans.
• Fund management by LIC’s professional team.

Important Terms and Conditions

• The plan has a lock-in period, and partial withdrawals are not permitted until vesting.
• Surrender value is payable only after completion of 3 policy years.
• If premiums are not paid within the grace period, the policy lapses but can be revived within two years under certain conditions.
• The suicide exclusion clause applies for death claims within one year.
• The policyholder must inform LIC 6 months before vesting if they opt to purchase an annuity from another insurer.

Withdrawn Status and Implications

The LIC Market Plus I Plan 191 was withdrawn from sale on 1 September 2010 by LIC as part of regulatory and market changes affecting ULIPs. However,

• Existing policyholders continue to enjoy benefits as per terms.
• NAV and fund management continue till maturity.
• Policyholders can use the existing calculator to track fund value and plan maturity benefits.

Where to Find LIC Market Plus I Plan 191 Calculator?

Several insurance websites and LIC’s official portal provide a calculator for this plan to help existing policyholders and new investors (for historical reference) understand returns and benefits.

Frequently Asked Questions

Conclusion

LIC Market Plus I Plan 191 is a unit-linked deferred pension plan that offers a unique combination of market-linked growth along with life cover options to build a retirement corpus.

The plan’s calculator is an essential tool to estimate and plan financial goals effectively. Though the plan is withdrawn now, it remains a relevant option for existing holders to monitor their investments.