Life Insurance Corporation of India (LIC) Index Plus Plan 873 has introduced an innovative plan, Index Plus, which combines the benefits of life insurance and market-linked investments. Designed for individuals seeking financial protection along with long-term wealth creation, this Unit Linked, Non-Participating policy offers significant flexibility and growth opportunities.
What is LIC’s Index Plus Plan 873 ?
LIC’s Index Plus is a Unit Linked Life Insurance Policy (ULIP) that provides dual benefits of life insurance coverage and market-driven investment returns. Policyholders can tailor their investment portfolio based on their risk appetite and financial goals.
Key Features of LIC’s Index Plus
- Life Insurance Cover: Provides protection throughout the policy term.
- Guaranteed Additions: Adds a percentage of the annual premium to the fund at specific intervals.
- Refund of Mortality Charges: On maturity, mortality charges deducted during the policy term are refunded.
- Partial Withdrawals: Allows liquidity after a lock-in period of 5 years.
- Customizable Options: Choose between sum assured levels, investment funds, and settlement methods.
- Optional Rider: Enhance coverage with LIC’s Linked Accident Benefit Rider.
Calculate Premium Lic Index Plus Plan 873
LIC Index Plus Premium Calculator
Eligibility and Premium Details
| Criteria | Details |
|---|---|
| Entry Age | 90 days – 60 years |
| Maturity Age | 18 – 85 years |
| Policy Term | 10 – 25 years |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly |
| Minimum Premium | ₹30,000 (Yearly); ₹2,500 (Monthly) |
Sum Assured Options:
- 7x or 10x the annualized premium for individuals aged 50 or below.
- 7x the annualized premium for those aged 51–60.
Fund Options for Investment
LIC offers two fund options to match diverse risk appetites:
- Flexi Growth Fund: Invests in stocks from the NSE NIFTY100 index, aiming for long-term capital appreciation.
- Flexi Smart Growth Fund: Focuses on NIFTY50 stocks for robust market-driven returns.
Both funds carry high-risk profiles and are designed for individuals seeking aggressive growth.
Benefits of LIC’s Index Plus
1. Death Benefit
In the unfortunate event of the policyholder’s demise, the nominee receives the higher of the following:
- Basic Sum Assured (adjusted for partial withdrawals).
- Fund Value.
- 105% of total premiums paid.
2. Maturity Benefit
On survival till the policy term, the total fund value is paid out.
3. Guaranteed Additions
Guaranteed additions are credited to the fund based on policy year and annual premium, as shown below:
| Policy Year | Premium < ₹48,000 | Premium ≥ ₹48,000 |
|---|---|---|
| 6 | 3% | 5% |
| 10 | 6% | 10% |
| 15 | 12% | 20% |
| 20 | 15% | 25% |
| 25 | 18% | 30% |
4. Liquidity Through Partial Withdrawals
After the 5-year lock-in period, policyholders can make partial withdrawals to meet financial needs.
Charges Under LIC’s Index Plus Plan 873
- Premium Allocation Charge: Ranges from 1.5% to 8% based on the policy year and purchase mode (online/offline).
- Fund Management Charge: 1.35% annually.
- Policy Administration Charge: Free for the first 5 years; nominal charges apply thereafter.
- Mortality Charge: Age-specific charges for life coverage.
Illustration: Estimated Benefits
For a 30-year-old policyholder with a half-yearly premium of ₹50,000 and a 25-year term:
| Growth Rate | Fund Value at Maturity | Death Benefit |
|---|---|---|
| 4% p.a. | ₹32,61,345 | ₹32,61,345 |
| 8% p.a. | ₹56,78,503 | ₹56,78,503 |
Advantages of LIC’s Index Plus
- Dual Benefit: Combines insurance and investment.
- Flexibility: Offers fund-switching and policy customization.
- Market-Linked Returns: Provides exposure to equity markets.
- Tax Benefits: Eligible for tax savings under applicable laws (consult a tax advisor).
Points to Consider
- Market Risk: As a ULIP, fund performance is subject to market risks.
- Lock-In Period: No withdrawals allowed during the initial 5 years.
- Mortality Charges: Refundable only on policy maturity.
Is LIC’s Index Plus Right for You?
LIC’s Index Plus plan is ideal for individuals seeking:
- Long-term wealth creation with life insurance protection.
- Market-linked returns.
- A disciplined investment strategy with partial liquidity options.
However, those with low-risk tolerance should carefully consider their investment choices within this plan.
Final Thoughts
LIC’s Index Plus offers a balanced combination of protection and growth. Its flexible features, guaranteed additions, and market-linked funds make it a competitive choice for modern investors.
If you’re looking for a plan that secures your family’s future while building wealth, LIC’s Index Plus deserves consideration.
FAQ'S LIC’s Index Plus Plan 873
1. What is LIC’s Index Plus Plan?
LIC’s Index Plus is a Unit Linked Insurance Plan (ULIP) that combines life insurance coverage with market-linked investment returns. It offers financial protection along with potential capital appreciation through equity-linked funds.
2. Who is eligible for the Index Plus plan?
- Entry Age: Minimum 90 days to a maximum of 60 years.
- Maturity Age: Minimum 18 years, with a maximum of 75 or 85 years depending on the sum assured option.
- Policy Term: Ranges from 10 to 25 years.
3. What are the premium payment options?
You can pay premiums yearly, half-yearly, quarterly, or monthly (through NACH). The minimum premiums are:
- Yearly: ₹30,000
- Half-Yearly: ₹15,000
- Quarterly: ₹7,500
- Monthly: ₹2,500
4. What investment funds are available under this plan?
The plan offers two fund options:
- Flexi Growth Fund: Invests primarily in NSE NIFTY100 stocks for long-term capital appreciation.
- Flexi Smart Growth Fund: Focuses on NSE NIFTY50 stocks for growth.
Both funds carry a very high-risk profile.
5. What benefits are offered under this plan?
- Death Benefit: Higher of the Sum Assured, 105% of total premiums paid, or the fund value.
- Maturity Benefit: The fund value at the end of the policy term.
- Guaranteed Additions: A percentage of the annual premium added to the fund
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