LIC Protection Plus (Plan No. 886, UIN 512L361V01) is a non‑participating, unit‑linked individual savings‑cum‑protection plan with flexible premium terms and refund of mortality charges at maturity.
Plan type and structure
- ULIP savings plan: Premiums are invested in market‑linked funds; policy value = unit fund value.
- Non‑par, linked: No bonuses; returns come from fund performance minus ULIP charges, plus refund of mortality charges at maturity.
- Protection + savings: Provides life cover during the term and fund value (plus mortality‑charge refund) on survival to maturity.
Key features
- Flexible Sum Assured: Basic Sum Assured is a multiple of annualised premium, between 5× and 40×, chosen at entry within LIC limits.
- Flexible PPT and term: Premium Paying Term options of 5, 7, 10 and 15 years, with policy terms designed around PPT; coverage can continue beyond PPT.
- Fund choice: Multiple ULIP funds to choose based on risk profile (e.g., equity‑oriented, balanced, debt); you can switch between funds as per rules.
- Top‑up premiums: You can pay additional “top‑up” premiums to increase investment and risk cover, subject to conditions.
- Partial withdrawals: Allowed after 5 policy years, within limits, while maintaining minimum fund value.
- Settlement option: Death benefit can be taken in instalments over 5/10/15 years instead of lump sum.
- Refund of mortality charges: All mortality charges for base life cover are refunded at maturity if policy is in force and not discontinued/surrendered.
Eligibility and basic parameters
From press‑release and current summaries (use LIC’s official brochure/CIS for the exact grid):
- Entry age: 18 to 65 years (exact max depends on PPT/term combination).
- Maturity age: 75 to 90 years (depends on chosen term/PPT).
- Premium Paying Term (PPT): 5, 7, 10 or 15 years.
- Policy term: Linked to PPT; longer than PPT so cover continues after premium payment ends (exact mapping in brochure).
- Minimum premium: Around ₹3,000 per year shown in tables; no upper premium limit, subject to underwriting.
- Basic Sum Assured: 5× to 40× annualised premium, within LIC’s age‑wise limits.
Benefits
Maturity benefit
If the life assured survives till the end of policy term and the policy is in force:
- Maturity benefit =
- Fund value (base premium fund value plus top‑up fund value, if any), plus
- Refund of total mortality charges deducted for base cover during the term (excluding extras/taxes),
subject to detailed conditions in the brochure.
Death benefit
If death occurs during the policy term while policy is in force (including grace period), death benefit is the highest of:
- Basic Sum Assured minus partial withdrawals (made in last 2 years), or
- Base Premium Fund Value, or
- 105% of total base premiums paid (excluding taxes/extra/rider premiums),
plus top‑up fund value (with its own minimum rules) if any.
The net claim amount can be taken as lump sum or in instalments over 5/10/15 years under the settlement option.
Discontinuance and surrender
- Within 5‑year lock‑in: Policy moves to Discontinued Policy Fund; proceeds (with capped FMC) are payable at the end of 5 years, net of discontinuance charges.
- After 5 years: On surrender, you receive full unit fund value; policy cannot be revived later.
Grace period of 30 days is available for unpaid premiums; policy can be revived by paying arrears as per LIC rules.
Charges
- Premium allocation charge (lower for online purchase; reduces in later years).
- Fund management charge within ULIP cap.
- Policy administration and mortality charges via unit cancellation.
- Discontinuance/switching charges per charge table.
Who should consider LIC Protection Plus?
- Clients wanting a market‑linked savings + protection plan with flexibility in premium amount, PPT, term and Sum Assured multiple, plus top‑ups and partial withdrawals.
- Investors who like ULIPs but appreciate the added feature of mortality‑charge refund at maturity, improving effective IRR versus traditional ULIPs.
- Mid‑career earners (say 30–50) planning 15–25‑year goals who are comfortable with NAV volatility and want customisable cover (5×–40× of premium).
Example: A 35‑year‑old chooses PPT 10 years and policy term aligned to maturity at 60, with Sum Assured 20× annual premium; premiums are invested in equity‑heavy funds, he can top‑up in good income years, make partial withdrawals after 5 years if needed, and on maturity at 60 he receives fund value plus refund of mortality charges, while his family has meaningful life cover throughout.