LIC SIIP: Review

LIC dominates the insurance industry, undoubtedly! But that wasn’t enough as LIC has introduced LIC SIIP with its benefits and charges only for you.

LIC SIIP: Review

Aren’t you the same person who wishes to invest your hard earned money and insure it as well, but couldn’t find out how to? Well you are at the right place. You might have heard about LIC policies like LIC Jeevan Arogya, LIC Tech Term Plan, and many more. So, for resolving the investment-insurance issue, LIC has proposed a plan known as SIIP - Plan 852. The LIC SIIP plan aims to offer an insurance cover throughout the policy tenure of the policy holder along with investing a portion of the premium in the equity and debt market to make a return from it.

Here’s the deal with how to know whether you are eligible for the policy: 




Age at Entry

90 Days

65 Years

Maturity Age

18 years

85 years

Policy Term

10 Years

25 Years

Premium Payment Term

Same as policy term

Same as policy term


40k (Annually)

12K (Quarterly)

22k (Half Yearly)

4k (Monthly)

No Limit

Age at Entry <=55

10 x Annualised

Age at Entry >=55

7 x Annualised

Who doesn't love options and choices when buying a product or service? So, there’s a catch here for you. LIC SIIP policy provides you four funds to choose from:

  • Bond Fund
  • Secured Fund
  • Balanced Fund
  • Growth Fund

Benefits of LIC SIIP

Whenever you opt for a product or a service you know that you have to look for the features and benefits of the same so as to know whether the product or service is useful for you or not. There is a truckload of benefits of LIC SIIP  which would make it easier for you to comprehend and be decisive - 

1. Maturity Benefit -  Once the insured individual reaches the date of maturity, provided that every premium of the policy is paid, the latter is due to pay the policy’s maturity claim to the former.

2. Death Benefit - The benefits of LIC SIIP policy during someone’s death is approached in two ways:

  • If the insured passes away before the commencement of risk, their nominee would be paid only the premiums submitted so far.
  • If the insured passes away after the commencement of risk, the nominee is paid the Sum Assured on Death and the Loyalty Additions, which can be availed either in installments or as a single large payment.

3. Guaranteed Additions - LIC SIIP offers a return on your policy which is a percentage of the premium. The below given table would guide you through the percentage of guaranteed returns:













4. Partial Withdrawals - After the fund investment completes five years and payments of all premiums have been paid as well, the insured can partially withdraw the unit funds three times within the policy period, with the minimum amount being Rs. 2000 and the maximum amount being 25% of fund amount. Every partial withdrawal charges Rs.100. 

The % of fund for maximum amount of partial withdrawal is given below:











5. Rider Benefits - If the insured dies due to any accident, the nominee can avail a lump sum amount, which by the way should not exceed the sum assured amount of the policy. This benefit is provided only if tenure is 5 years or more. 

Charges of LIC SIIP

Just like every action comes with a price, every benefit availed charges an amount from you. The charges of LIC SIIP are mentioned below: 

1. The Premium Allocation Charge differs between online and offline which are given below:

During Online Transaction

1st Year - 3%

2nd to 5th Year - 2%

6th Year Onwards - 1%

During Offline Transaction

1st Year - 8%

2nd to 5th Year - 5.5%

6th Year Onwards - 3%

2. The Morality Charges  is the cancellation of the appropriate number of units which is age specific and also depends on the sum assured.

3. The Accidental Benefit Charges  is deducted at the start of every month and is applicable at Rs. 0.40 per thousand.

4. The Fund Management Charges is applicable as the percentage of the value of asset and is imposed as 1.35% per annum.

5. The Switching charges are applied when you switch the bond for the 5th time, as you can only switch upto 4 times, and exceeding this would lead up to a charge of Rs. 100 per switching.


You have gone through the entire article reading and learning about the benefits, the features offered with the benefits, and also how charges would be applicable if you buy a policy. LIC SIIP has given hope to many people out in the country, which makes it the top-notch institution - reliable and trustworthy.Giving it a try and knowing its benefits in real life would help you.