Flexi Plus, a unit linked insurance product Is it good or bad ULIP plan
Flexi plus plan was launched by Life Insurance Corporation of India (LIC) in January 2013. It is a unit linked plan under guidelines of IRDA. It certainly has fewer charges as compared to other ULIP plans. In fact, Flexi Plus is a basic unit linked assurance plan. On one hand, it provides lump sum benefit to the policy holder in case of death and on the other it offers maturity benefits in case the policy holder is surviving.
Advantages of Flexi Plus
The biggest benefit it offers is the flexibility to choose the policy term and also that you can choose the premium paying mode as per your wish or convenience. You can choose between fund types to suit your specific investment needs. Moreover, you can withdraw it partially, in case of any unforeseen emergency that may arise. It offers a flexible premium paying mode to be paid yearly, half-yearly, quarterly or monthly. What’s more assuring that in case of death of the person insured, the nominee gets the sum assured as immediate Death Benefit and the policy continues.
Limitations of Flexi Plus
With Flexi Plus overall being an advantageous and preferred plan, there are few limitations attached to it. For example, there is no Top-up allowed with this plan. Also, there are only 4 free switches allowed in each policy year, beyond which there is a charge associated of Rs. 100 applicable to each switch. Partial withdrawal is allowed, however, it can happen only after 5th policy anniversary, which is a little longer time.
To conclude, whether to go for a plan or not is purely a personal decision and not every plan may suit your specific requirements. At the same time, Flexi Plus is a decent plan which is quite simple and you get death benefit, maturity benefit and income tax benefit, all at the same time.
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