LIC Aims To Garner Rs 25000 Crore From Wealth Plus Scheme (22-Feb-2010)
Life Insurance Corporation (LIC) has set a target to garner Rs 25,000 crore from its recently launched close-ended unit-linked Wealth Plus scheme.
An official said that a target of Rs 25,000 crore has been set by the company in order to mobilise from Wealth Plus scheme that safeguards investments from the fluctuations of the market.
Sensing the great demand for guarantees as well as guaranteed-return products, LIC had launched a close ended plan Jeevan Aastha last year, which garnered over Rs 10,000 crore during a short period.
LIC this year as well come out with an assured return plan known as Jeevan Nischay, which was in tune with the current market realities only for the company''s existing policyholders, a LIC statement said.
It also said despite the availability of Jeevan Nischay for subscription, there was strong demand for a product (Wealth Plus), which is market linked and yet assures the customers of the benefit of highest Net Asset Value (NAV) over a certain period of time, it said.
It said that Wealth Plus guarantees the highest NAV recorded on a daily basis, in the first 7 years of the policy, subject to a minimum of Rs 10.
The statement said that this means the payment at the end of the policy term will be based on highest NAV recorded over the first 7 years of the policy or the NAV as applicable at the end of the policy term, whichever is higher.
The guarantee will be applicable only for payment made at the end of the policy term irrespective of any partial withdrawals during the policy term.
Wealth Plus includes features like the extended life cover for two years after the completion of policy term of eight years, it said.
The payment of premium can be either in a single lump sum or for three years regularly at specified intervals. The minimum premium for three years stood at Rs 20,000 per annum, whereas the single premium would be Rs 40,000.
It said that in a policy-year, two partial withdrawals are allowed subject to certain conditions and the policy can be surrendered only during the policy term.
Meanwhile, LIC, with an objective to close the yearly equity investment at higher level, is eyeing to pump in around Rs. 10,000 crore in the stock Market by the end of the current financial year, taking its annual equity investment to Rs. 60,000 crore during this financial year.
Mr. N Mohanraj, Executive Director (investment operations) of LIC said the company''s investment in the equity market has so far already crossed Rs. 50,000 crore and it expects to close the current financial year with an investment of Rs. 55,000-60,000 crore.
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