LIC Index Plus (Plan No. 873, UIN 512L354V01) is a unit‑linked, non‑participating, regular‑premium life insurance plan that combines market‑linked growth with life cover and guaranteed additions.
Plan type and structure
- Unit‑linked, regular premium: Premiums are invested in chosen ULIP funds; policy value = unit fund value, which moves with the market.
- Non‑participating: No bonuses; returns depend on fund performance minus ULIP charges, plus defined guaranteed additions.
- Life cover + savings: Provides death benefit during term and fund value on maturity, with optional linked accident benefit rider.
Key features
- Fund options: At least two funds, including an Index Fund (equity index‑linked) and a more conservative fund; you can allocate premiums and switch between them (some free switches per year).
- Guaranteed Additions: Added as a percentage of one annualised premium at specified policy years, boosting fund value.
- Refund of mortality charges: On survival to maturity with all premiums paid, mortality charges deducted for life cover are refunded (excluding extras/taxes), in addition to fund value.
- Partial withdrawals: Allowed after 5‑year lock‑in, subject to minimum withdrawal and minimum fund value rules.
- Optional rider: LIC’s Linked Accident Benefit Rider to enhance protection.
Eligibility and basic parameters
From current public grids; for compliance use LIC’s official brochure/CIS for Index Plus 873.
- Entry age: 90 days (completed) to 60 years.
- Maturity age: 18 to 85 years.
- Policy term: 10 to 25 years.
- Premium payment: Regular premium for full policy term.
- Premium modes & minimums (illustrative):
- Sum Assured options (linked to age):
Benefits
Maturity benefit
If the life assured survives to maturity and all due premiums are paid:
- Maturity benefit = Unit fund value on maturity date, plus refund of mortality charges (if conditions met, and excluding extra/tax components).
Guaranteed additions already form part of the fund by then.
Death benefit
If death occurs during the policy term while the policy is in force, nominee receives higher of:
- Basic Sum Assured, or
- 105% of total premiums received (excluding taxes, extra premium, rider premium), or
- Unit fund value,
as lump sum (wording and exact maximum/minimum structure may vary; check latest brochure).
Surrender / discontinuance
- Within 5 years: Policy goes into a discontinued fund; proceeds are payable only after completion of 5 years, net of discontinuance charges.
- After 5 years: Surrender value equals fund value, subject to policy conditions.
Charges
- Premium allocation charge: About 1.5%–8% depending on year and offline/online purchase.
- Fund management charge: Around 1.35% p.a. of fund value.
- Policy administration, mortality and possible discontinuance charges as per charge table.
Who is LIC Index Plus suitable for?
- Clients wanting equity‑linked growth via LIC ULIP with some guarantees (additions, refund of mortality charges) plus life cover.
- Younger earners planning long‑term goals (15–25 years) who can handle NAV volatility and want flexible partial withdrawals after 5 years.
- Investors already using mutual funds/NPS but wanting a ULIP wrapper with life cover under LIC brand, especially for child education or retirement goals.
Example: A 34‑year‑old pays ₹1,00,000 yearly for 21 years; money is invested in Index Fund or Balanced Fund, guaranteed additions are credited at set years, mortality charges are refunded at maturity, and if he dies earlier his family gets at least the higher of sum assured, 105% of premiums, or fund value.