2 days ago
LIC International's Flexi Wealth Builder Plan in Bahrain: Insights from CEO Mr. DP Pattanaik
Manama
In an exclusive interview, Mr. DP Pattanaik, the CEO of LIC International, introduced the company as a prominent player in the life insurance sector, dedicated to meeting the diverse needs of customers in the Middle East since its inception in Bahrain in 1989. With a portfolio of 18 innovative products, LIC International aims to deliver customer-centric solutions.
The Flexi Wealth Builder Plan, an individual unit-linked whole - life policy, stands out with its limited payment terms of 10, 15, or 20 years. This plan allows policyholders to start investment with a monthly premium of USD 300 and maximum without upper limit to effectively manage and grow their wealth through investments in various market - linked funds, with the investm ent risk borne by the policyholder. Designed to provide access to a wide range of USD-based funds across different asset classes, the plan also offers provisions for additional premium top-ups.
The plan offers significant benefits, such as a death benefit that pays out 101% of the fund value to the nominee in the event of the policyholder's passing. While there is no maturity benefit post a fixed term, policyholders can withdraw 100% of the fund value after one year, subject to applicable surrender charges.
Additional features include fund switching, allowing policy - holders to change their investment funds witho u t limits or fees, and the option for top-up investments. The Flexi Wealth Builder Plan is available to individuals from newborns to those aged 70.
For liquidity, policyholders can make partial withdrawals after one year, with a minimum fund value requirement, or surrender the policy after one full year to receive the fund value minus any charges.
The plan offers multiple investment options: equity funds for higher returns, debt funds for stable returns, and balanced funds for a mix of both. Customers can choose their preferred funds based on their risk tolerance and long-term financial goals.
Understanding the associated charges is crucial for potential investors. These include establishment, policy management, administration, and fund management charges, all of which remain fixed throughout the policy term, with adjustments possible upon a 60-day notification.
With no charges for fund switching and no mortality charges, the plan ensures transparency and control for customers through an online ULIP portal, allowing them to monitor and manage their investments.
Mr. Pattanaik emphasized that the Flexi Wealth Builder Plan combines life insurance and investment benefits, providing financial security for loved ones while helping individuals achieve their financial objectives. Fund switching enables policyholders to adapt their investments according to market conditions, and the topup option allows for enhanced contributions as financial needs evolve.
This plan is particularly suitable for investors with medium to long-term goals, accommodating various risk tolerances and life stages. Mr. Pattanaik advised that early investment maximizes growth potential, especially given potential charges for early withdrawals.
As a unit-linked product, the Flexi Wealth Builder Plan offers the potential for higher returns by investing in diversified asset classes managed by experienced fund managers, allowing policyholders to adjust their portfolios based on market performance.
