LIC’s Index Plus (Plan No. 873) is a Unit Linked, Regular Premium, Individual Life Insurance Plan launched by LIC of India for those who want the dual benefits of market-linked wealth creation and robust life insurance protection. It’s aimed at long-term savings through investment in equity and debt via two professionally managed fund options, while providing guaranteed additions, flexible premium, and sum assured options, along with comprehensive life cover and the option for accidental death rider.
.png)
What is LIC Index Plus 873?
LIC Index Plus 873 is a “ULIP”—Unit Linked Insurance Plan—which means your premiums are invested in market-linked funds and the value depends on the performance of those funds. At the same time, you get life insurance coverage, so if the insured person dies during the policy term, the nominee receives either the sum assured, fund value, or a guaranteed minimum payout. The plan was launched in February 2024, offering unique structure and benefits, and subsequently withdrawn for new sales in October 2024, but many policyholders continue to hold it.
Key Features
Unit Linked, Non-Participating, Regular Premium Plan: Combines investment with life cover; no bonuses.
Flexibility in Coverage: Choose 7x or 10x annual premium as Sum Assured depending on age; younger policyholders can opt for higher multiples.
Two Investment Funds: Flexi Growth Fund (equity-focused) and Flexi Smart Growth Fund (balanced).
Premium Payment: Min. ₹30,000/year (or equivalent half-yearly, quarterly, or monthly); no upper limit.
Policy Term: Choice from 10 to 25 years (depends on age); min. entry at 90 days, maximum entry up to 60 years, max. maturity between 75 to 85 depending on sum assured multiple.
Lock-in Period: Five years before any partial withdrawal or surrender.
Guaranteed Additions: Added as a percentage of annual premium at various milestones (details in brochure).
Partial Withdrawal: Allowed after 5 years for policyholder age 18+, up to a defined policy value.
Rider: Optional Accidental Death Benefit Rider available after 5 years up to 70 years of age.
Refund of Mortality Charges: On maturity, mortality charges collected over years are refunded (excluding rider or underwriting-related charges).
Comprehensive Maturity and Death Benefits: Paid as the higher of sum assured, fund value, or 105% of premium paid.
Benefits: Maturity, Death, and Rider
Maturity Benefit
At term end, if the policyholder survives and all premiums are paid, you get the entire unit fund value (i.e., market value of the accumulated fund units), plus a refund of all base plan mortality charges deducted during the term.
Death Benefit
If the policyholder passes away:
Before risk start: Full fund value is paid.
After commencement of risk: Higher of (Sum Assured minus any withdrawals in last 2 years, Fund Value, or 105% of all premiums paid) is paid to nominee.
Accidental Death Benefit Rider
Available to policyholders after 5 years, before the age of 70. Pays “Accident Benefit Sum Assured” (multiple of premiums, as chosen) on accidental death.
Guaranteed Additions
Paid as a percent of annualized premium at key milestones–these percentages and years are in the sales brochure and increase the fund value, boosting returns.
Eligibility Criteria
| Criteria | Details |
|---|---|
| Min. entry age | 90 days (completed) |
| Max. entry age | 60 years |
| Minimum maturity age | 18 years |
| Maximum maturity age | 75-85 years (varies: 7x BSA - up to 85, 10x BSA - up to 75) |
| Policy term | 10 to 25 years |
| Minimum premium/year | ₹30,000 (annual), ₹15,000 (half-yearly), ₹7,500 (quarterly), ₹2,500 (monthly) |
| Maximum premium | No upper limit |
| Lock-in period | 5 years |
| Basic sum assured | 7x or 10x (as per age & choice) |
Fund Options and Charges
Flexi Growth Fund: Equity-heavy, higher risk/reward.
Flexi Smart Growth Fund: Balanced, lower risk profile.
Fund Management Charge: 1.35% per annum of unit fund value, daily deduction.
Premium Allocation Charge: Varies: Lower (1.5-3%) for online, 4-8% for offline in first years, reducing with time.
Switching Charges: Changing between funds is allowed, but only a set number of switches per year are free.
How to Buy LIC Index Plus 873
Online: Through LIC’s official portal by selecting “Market Linked Plans,” filling details, uploading required KYC, and making online payment.
Offline: At any LIC branch or through an authorized LIC agent by submitting application, KYC, and premium payment.
Third-party: Some approved insurance intermediaries offer the plan with guidance and documentation.
Surrender and Partial Withdrawal
Partial withdrawal: Allowed after 5th year, provided all dues are paid and policyholder is at least 18; subject to withdrawal limits as per policy conditions.
Surrender: Allowed after 5 years with payout of fund value minus surrender charges; before 5 years, amount moves into Discontinued Policy Fund.
Free-look period and grace period apply as per IRDAI rules.
Suitability
Ideal for individuals wanting high ULIP flexibility, long-term wealth creation, and insurance, especially those with medium to high market risk appetite, looking for tax savings under 80C and a product with bonus guaranteed additions and life cover features.
Conclusion
LIC’s Index Plus 873 blends life insurance with disciplined, market-linked investment and guaranteed returns through additions. It stands out through refunded mortality charges at maturity, comprehensive death cover, flexible sum assured, and policy terms suitable for different life stages. For investors seeking long-term market participation with insurance benefits and the trust of LIC, it provides a robust and transparent solution.
.png)
.png)
.png)
.png&description=LIC's Index Plus 873 ){kind=link}
0 Comments