• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Site Logo

BasuNivesh

Personal Finance Blog

  • Home
  • Service
    • Fee-Only Financial Planning Service
    • Financial Wellness Session
  • Blog
  • Old Articles
  • About Us
  • Contact us
  • Media
  • Search

LIC’s Flexi Plus-Review

Recently LIC came up with one more plan other than “New Jeevan Nidhi” on this new year eve. I already covered the review part of “New Jeevan Nidhi” in my previous post. So let us understand this product and to whom this product is suitable.

This is plan is ULIP (non traditional plan) and LIC claiming it as flexible with provision of protection to your life and long term saving. Plan features are as below.

FLEXI

Benefits-

Death Benefit-Immediately Sum Assured will be payable to nominee. Amount equal to future premium payable after death of life assured will be credited to policy holder’s fund as the rate applicable on that day. On maturity day, available units under policy holder’s fund will be payable to nominee as per prevailing rates.

Survival Benefit-Equal to the policy holder’s fund value as on maturity date will be payable.

Can you go for this plan?

Looking from above table you may see that this ULIP have only two fund types (Debt Fund and Mixed Fund), where equity exposure in both funds is nil to maximum of 25%. Hence this ULIP can be called as non equity oriented. Maximum limit is just Rs.1,00,000 per year means concentrating on all class of investors.

Considering this as debt oriented ULIP means cost looks costlier when you compare with debt funds where expense ratio hover from 1.2% to 1.75%. I saw few reviews of this plan where they directly calculated the expense ratio of equity mutual fund by considering highest expense ratio (2.5%), which I think not fair. Because first of all this ULIP is not equity oriented and second thing their are lot of funds whose expense ratio is less than 2% (in equity too).

Please also note that policy admin charges and fund management charges may revive in future. But with certain limits. Hence considering the above mentioned expenses are constant may cost you more too. Loan on this policy is not allowed.

Liquidity is not easy within 5 years. This is not the case with mutual funds. You can liquidate even after 2-3 years too by shifting into other mutual funds. Only death benefit looks different to conventional ULIPs. But to get the full benefit you need to wait till the maturity of the policy.

So this plan does not have any wonderful features which can really attracts investors. Instead as a thumb rule, separate insurance with investment by taking term insurance and if investing the rest in PPF (if you are totally risk averse) may generate more return than this.

About Basavaraj Tonagatti

Basavaraj Tonagatti is the man behind this blog. He is SEBI Registered Investment Adviser who is practicing Fee-Only Financial Planning Process and also an Independent Certified Financial Planner (CFP), engaged in blogging since 7 years. BasuNivesh blog is ranked as one among India's Top 10 Personal Finance Blog. He is not associated with any Financial product/service provider. The purpose of this blog is to "Spread personal finance awareness and make them to take informed financial decisions." Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. These should not be construed as investment advice or legal opinion."

Previous Post: « LIC launched New Jeevan Nidhi-What is new??
Next Post: How to become Financial Planner yourself? »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Sidebar

Newsletter Signup

Subscribe to our weekly newsletter below and never miss the latest product or an exclusive offer.

Enter your email address

Categories

  • Banking
  • Consumer Rights
  • EPF and PPF
  • Insurance Planning
  • Investment Planning
  • Mutual Fund
  • Real Estate
  • Real Life Stories
  • Retirement
  • Tax Planning
  • Uncategorized

Subscribe to our YouTube Channel

Recent Posts

  • Muthoottu Mini Financiers NCD Jan 2021 – Double money in 84 MONTHS!!
  • Latest NPS exit and withdrawal Rules 2021
  • Interesting Tax Dispute – Whether Sachin Tendulkar Actor or Cricketer?
  • List of Index Funds in India 2021
  • 7.15% Power Finance Corporation NCD Bonds 2021 – Review
  • ENEMY No.1 of your investment

Are you looking for Unbiased, Simple and Conflict-Free Financial Planning Service?

We neither SELL any product nor representative of any Insurance or Mutual Fund Companies.

We offer you an unbiased Fee-Only Financial Planning Service.

GET STARTED

    Follow along on social media

Get in touch with us here

Address: Basavaraj Tonagatti,
1446, Aastha, Sir M Vishweshwarayya Layout, 5th Block, Bangalore-560056.

Phone: (+91) 9019580450

Email: tonhokrani@gmail.com

Subscribe to our newsletter

Newsletter Signup

Subscribe to our weekly newsletter below and never miss the latest product or an exclusive offer.

Enter your email address

© Copyright 2020

Return to top