LIC targets young professionals with ULIP

Life Insurance Corporation (LIC) today announced the launch of its new Unit Linked Insurance Plan (ULIP) 'LIC New Endowment Plus'.

The company is targetting young city-based professionals with the new product.

"The young working professionals, especially residing in urban centres and having some amount of financial literary would be attracted to our new ULIP," LIC senior divisional manager Adiya Gupta told the media here.

The product offers investment-cum-insurance during the term of policy, which provides dual benefits of risk cover and benefits of investment markets.

"The Plan offers an opportunity to reap the benefits of capital market," he underlined.

The policyholders will have the option to choose from any of the four funds viz. Bond Fund, Secured Fund, Balance Fund and Growth Fund depending upon one's risk appetite. It offers the facility of switching between these funds.

The Net Asset Value (NAV) of all the segregated funds will be computed on daily basis and will be based on the investment performance and Fund Management Charge of each fund type. On the date of launch, the NAV under all funds would be Rs 10, he said.

Meanwhile, the Plan is available from ages 90 days to 50 years with a choice of policy term of 10 to 20 years.

The maturity benefit can be payable either as a lump sum amount or in equal installments if settlement option is opted for.

Although, UP is India's largest state in terms of population, the penetration of life insurance segment is still not deep and the general people are comparatively less inclined towards investing in life insurance and pension products compared to more progressive states like Maharashtra and Gujarat.