LIC Index Plus Plan-873 Features, Benefits, Premium Calculator

LIC Index Plus Plan-873 is a unique life insurance product that offers a blend of market-linked growth and guaranteed protection. It’s a unit-linked insurance plan (ULIP), which means that it gives you the benefit of potential returns based on stock market performance, while also ensuring that your investment is backed by life cover.

If you’re looking for a way to invest in the market with a safety net for your loved ones, LIC Index Plus offers a straightforward and secure way to grow your wealth.

What is LIC Index Plus Plan-873?

LIC Index Plus is a ULIP (Unit Linked Insurance Plan) that links the growth of your investment to the stock market. This policy doesn’t just act as life insurance; it also offers a potential for returns based on the performance of a specified market index. While it’s connected to market movements, LIC manages this plan with a built-in cap on the returns, providing a balance between market-linked growth and secure returns.

The plan is available in two fund types: Index Fund and Debt Fund. The Index Fund aligns with the stock market, while the Debt Fund provides safer, bond-based growth for conservative investors. So, you have the flexibility to choose how much exposure you want to the stock market depending on your risk preference.

Key Features of LIC Index Plus Plan

1. Market-Linked Growth: The Index Fund portion of your policy is tied to the stock market, which allows your investment to grow with market performance.
2. Security with Cap on Returns: Even though it’s market-linked, the policy offers a cap on returns, balancing risk and return to offer a more secure investment option.
3. Life Cover: Alongside your investment, you receive life insurance coverage, ensuring that your family is financially protected.
4. Flexible Fund Options: Choose between the Index Fund for growth-oriented returns and the Debt Fund for conservative growth, or a mix of both.
5. Tax Benefits: Enjoy tax benefits on premiums paid and the policy payout under Sections 80C and 10(10D) of the Income Tax Act.

Why Choose LIC Index Plus Plan?

1. Potential for Growth: The plan links your investment to market growth, giving you a chance to grow wealth over time.
2. Life Cover Protection: You have the security of life insurance, ensuring that your loved ones receive financial support in case of an unfortunate event.
3. Choice of Funds: The two fund options allow you to customize the investment as per your risk tolerance, offering flexibility that fits different financial goals.
4. Balanced Risk: With a cap on returns, LIC Index Plus provides a steady growth option with lesser exposure to high market volatility.
5. Easy Access: Available both online and offline, you can choose to apply in a way that suits your preference.

Eligibility for LIC Index Plus Plan

Feature	Details
Minimum Entry Age	18 years
Maximum Entry Age	55 years
Policy Term	10 to 20 years
Premium Payment Mode	Single, Regular (monthly, quarterly, yearly)
Sum Assured	Varies based on policy and premium

Benefits of LIC Index Plus Plan

The LIC Index Plus Plan brings together the best of both worlds: investment potential and life insurance. Here are the major benefits:

• Growth Potential: Benefit from market-linked returns with the option to choose your risk level through Index or Debt Funds.
• Secure Returns with a Cap: Although tied to market performance, LIC Index Plus has a cap on returns, balancing security with potential growth.
• Life Insurance Cover: The plan provides life cover along with investment, giving your family financial protection in case of an unfortunate event.
• Flexible Premium Payment Options: Pay premiums either as a one-time lump sum or regularly, as per your convenience.
• Tax Benefits: Get tax deductions on premiums and tax-free maturity benefits, making it a tax-efficient investment.

How to Apply for LIC Index Plus Plan-873?

Applying for LIC Index Plus Plan-873 is easy:

1. Visit the official LIC website or your nearest LIC branch.
2. Select the LIC Index Plus Plan, and choose your desired fund type (Index or Debt).
3. Fill out the application form with required personal and financial information.
4. Submit documents including identity proof, address proof, and income proof.
5. Pay your premium based on the selected payment mode.
6. Your policy will be issued, giving you both investment growth and life cover.

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FAQs

1. What is the purpose of the LIC Index Plus Plan?

• The LIC Index Plus Plan is a ULIP that combines life cover with market-linked investment, offering growth potential with an assurance of protection.

2. Can I choose both the Index and Debt Fund options?

• Yes, you can allocate funds between both the Index Fund and Debt Fund according to your risk preference, giving you a customized approach to investment.

3. Is there a risk involved in LIC Index Plus?

• Since it’s a ULIP, part of your investment is tied to the market, which involves some risk. However, LIC’s cap on returns provides a level of security against extreme market volatility.

4. Does LIC Index Plus offer a maturity benefit?

• Yes, at the end of the policy term, you’ll receive a maturity benefit based on the value of your funds, helping you build wealth over time.

5. Are there tax benefits on this plan?

• Yes, premiums are eligible for tax deductions under Section 80C, and the maturity or death benefit is tax-free under Section 10(10D), making it tax-efficient.

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Conclusion

The LIC Index Plus Plan-873 is a smart choice if you’re looking to combine market growth with secure life insurance. With flexible fund options, tax benefits, and steady returns with a cap, LIC Index Plus offers a balanced way to grow your wealth while protecting your family. Whether you’re a seasoned investor or new to ULIPs, this plan’s simplicity and security make it a solid option for financial planning.