Unit Linked Plans (ULIP)
LIC's Index Plus (873)
Equity-focused ULIP investing in NIFTY 100 or NIFTY 50 stocks, with life cover
- Entry age
- 90 days (completed) to 50 years (nearer birthday) for 7x or 10x cover; 51 to 60 years (nearer birthday) for 7x cover only
- Policy term
- 10 to 25 years if annualised premium is ₹48,000 or more; 15 to 25 years if below ₹48,000
- Premium paying term
- Same as policy term
- Min. sum assured
- Basic Sum Assured is 7x or 10x annualised premium (7x only for entry 51-60). Minimum premium: ₹30,000 yearly, ₹15,000 half-yearly, ₹7,500 quarterly, ₹2,500 monthly (NACH)
Plan overview
LIC's Index Plus is a regular premium unit-linked life insurance plan that invests your premiums in one of two equity-oriented funds built around select NIFTY 100 or NIFTY 50 stocks. It provides life cover through the term, Guaranteed Additions at set intervals and a refund of mortality charges at maturity if all premiums are paid. It suits long-term investors who are comfortable with very high equity risk.
New to unit linked plans (ulip)? Read our simple guide: ULIP Explained: How Unit-Linked Plans Work →Key benefits
- Two equity-oriented funds: Flexi Growth (NIFTY 100 stocks) and Flexi Smart Growth (NIFTY 50 stocks)
- Life cover of 7 or 10 times the annualised premium, depending on entry age
- Guaranteed Additions from 3% up to 30% of one annualised premium at years 6, 10, 15, 20 and 25
- Mortality charges refunded on survival to maturity if all premiums are paid
- No policy administration charge in the first 5 years
- Partial withdrawals after the 5-year lock-in
- Optional LIC's Linked Accidental Death Benefit Rider
Eligibility at a glance
- Plan number
- 873
- UIN
- 512L354V01
- Plan type
- Non-Par, Linked, Life, Individual Savings Plan
- Entry age
- 90 days (completed) to 50 years (nearer birthday) for 7x or 10x cover; 51 to 60 years (nearer birthday) for 7x cover only
- Maximum maturity age
- 85 years (nearer birthday) for 7x cover; 75 years (nearer birthday) for 10x cover; minimum maturity age 18 years (completed)
- Policy term
- 10 to 25 years if annualised premium is ₹48,000 or more; 15 to 25 years if below ₹48,000
- Premium paying term
- Same as policy term
- Minimum sum assured
- Basic Sum Assured is 7x or 10x annualised premium (7x only for entry 51-60). Minimum premium: ₹30,000 yearly, ₹15,000 half-yearly, ₹7,500 quarterly, ₹2,500 monthly (NACH)
- Maximum sum assured
- No limit on premium (subject to underwriting)
- Premium payment modes
- Yearly, Half-yearly, Quarterly, Monthly (NACH only)
How the plan works
Index Plus is a non-participating, regular premium unit-linked life insurance plan. In this policy, the investment risk in the investment portfolio is borne by the policyholder. Both available funds are equity-oriented and rated very high risk. After the premium allocation charge, each premium buys units of your chosen fund; other charges are recovered by cancelling units or through the NAV. There is a 5-year lock-in during which money cannot be fully or partly withdrawn. It can be bought through agents and other intermediaries or online at www.licindia.in.
| Item | Limit |
|---|---|
| Entry age | 90 days (completed) to 60 years (nearer birthday) |
| Basic Sum Assured | 7x or 10x annualised premium (entry up to 50); 7x only (entry 51 to 60) |
| Policy term | 10-25 years (annualised premium ₹48,000+); 15-25 years (below ₹48,000) |
| Premium paying term | Same as policy term |
| Maturity age | Minimum 18 (completed); maximum 85 for 7x cover, 75 for 10x cover (nearer birthday) |
| Minimum premium | ₹30,000 yearly / ₹15,000 half-yearly / ₹7,500 quarterly / ₹2,500 monthly (NACH) |
| Maximum premium | No limit, subject to underwriting |
| Top-up | Not allowed |
For a child under 8 at entry, risk cover starts 2 years after the policy start or at the policy anniversary after age 8, whichever is earlier. A policy on a minor vests in the child at the policy anniversary after age 18.
Death benefit
- Before risk starts (young children): unit fund value.
- After risk starts: the highest of (a) Basic Sum Assured, (b) unit fund value, or (c) 105% of total premiums received. Partial withdrawals in the two years before death are deducted from (a) and (c).
Charges taken after the date of death (other than fund management) are added back. The death benefit can be paid in instalments over up to 5 years if the settlement option is chosen; the money stays invested at the nominee's risk in that period.
Maturity benefit
On survival to maturity you receive the unit fund value. If all premiums have been paid, the total mortality charges deducted for life cover (excluding underwriting extras and taxes) are refunded along with it. No refund on surrendered or discontinued policies.
Guaranteed Additions (in-force policies, % of one annualised premium):
| End of policy year | Annualised premium below ₹48,000 | ₹48,000 and above |
|---|---|---|
| 6 | 3% | 5% |
| 10 | 6% | 10% |
| 15 | 12% | 20% |
| 20 | 15% | 25% |
| 25 | 18% | 30% |
They are reduced proportionately after partial withdrawals and not paid on reduced paid-up policies.
Fund options
| Fund | Govt/corporate debt | Money market | Listed equity | Objective | Risk |
|---|---|---|---|---|---|
| Flexi Growth Fund | 0% to 20% | 0% to 40% | 40% to 100% | Long-term growth mainly through select stocks in the NSE NIFTY 100 Index | Very high |
| Flexi Smart Growth Fund | 0% to 20% | 0% to 40% | 40% to 100% | Long-term growth mainly through select stocks in the NSE NIFTY 50 Index | Very high |
The whole fund is in one fund at a time. Four switches per policy year are free; then ₹100 per switch. Discontinued policies are held in the Discontinued Policy Fund, which earns at least the regulatory guaranteed rate (currently 4% p.a.).
Charges
- Premium allocation charge (% of instalment premium): Offline 8% in year 1, 5.5% in years 2-5, 4% thereafter. Online 3%, 2% and 1.5%.
- Policy administration charge: Nil for the first 5 years. In year 6, the lower of one-twelfth of 3.25% of the annualised premium or ₹125 per month; rising 5% a year from year 7, capped at ₹500 per month.
- Mortality charge: Age-based, on the sum at risk. Sample annual rates per ₹1,000 sum at risk for a healthy life: age 25 ₹1.26, 35 ₹1.62, 45 ₹3.48, 50 ₹5.99, 60 ₹15.07.
- Accident benefit charge (if rider opted): ₹0.40 per ₹1,000 accident benefit sum assured per year (₹0.80 for police duty, other than paramilitary).
- Fund management charge: 1.35% p.a. for both funds; 0.50% p.a. for the Discontinued Policy Fund.
- Discontinuance charge: Only if discontinued in the first 4 years; nil from year 5.
- Partial withdrawal charge: ₹100 each. Switching charge: ₹100 beyond 4 free switches. Miscellaneous charge: ₹100 per alteration. Bid-offer spread: Nil.
- GST applies on charges. Charges other than mortality and accident benefit may be revised within IRDAI caps after 3 months' notice.
Optional riders
- LIC's Linked Accidental Death Benefit Rider (UIN: 512A211V02): can be added at any policy anniversary if at least 5 years of term remain, up to age 65 (nearer birthday); cover runs to maturity or age 70, whichever is earlier. Not available during minority. Accident Benefit Sum Assured cannot exceed the Basic Sum Assured.
Loan, surrender & revival
- Loan: Not available under this plan.
- Partial withdrawal: After the 5-year lock-in (for minors, only after age 18). Maximum per year: 20% of fund in years 6-10, 25% in years 11-15, 30% in years 16-20, 35% in years 21-25. The fund must keep at least 4 annualised premiums (if annual premium is below ₹48,000) or 3 annualised premiums (otherwise). Sum assured is reduced by withdrawals for two years.
- Surrender: During the lock-in, fund value less discontinuance charge moves to the Discontinued Policy Fund and is paid at the end of the lock-in. After the lock-in, the fund value is paid with no discontinuance charge. A surrendered policy cannot be reinstated.
- Discontinuance: Unpaid premium after the grace period during the lock-in stops cover and moves the fund to the Discontinued Policy Fund. After the lock-in, the policy becomes reduced paid-up with sum assured reduced in proportion to premiums paid.
- Revival: Within 3 years from the first unpaid premium (or up to maturity if earlier, after lock-in), by paying all due premiums without interest, subject to underwriting.
Other key terms
- Grace period: 30 days for yearly, half-yearly or quarterly premiums; 15 days for monthly (NACH).
- Free-look period: 30 days from receipt of the policy document.
- Compulsory termination: After 5 years, if the fund cannot cover charges, the policy ends and any balance is refunded.
- Suicide: Within 12 months of the policy start or revival, the nominee receives the fund value.
Who should buy LIC's Index Plus?
- Long-term investors seeking equity market exposure along with life cover
- People comfortable with very high risk and fluctuating fund values
- Parents investing for a child's future (entry from 90 days of age)
- Savers who want Guaranteed Additions and mortality charge refund for staying the full term
Frequently asked questions
What is the entry age for LIC Index Plus (Plan 873)?
From 90 days (completed) to 60 years (nearer birthday). Cover of 10 times the annual premium is available only up to age 50; from 51 to 60 the cover is 7 times.
What is the minimum premium and policy term?
Minimum premium is ₹30,000 yearly, ₹15,000 half-yearly, ₹7,500 quarterly or ₹2,500 monthly (NACH). The term is 10 to 25 years if the annual premium is ₹48,000 or more, and 15 to 25 years if it is lower.
Where is my money invested?
In one of two equity-oriented funds: Flexi Growth Fund (select NIFTY 100 stocks) or Flexi Smart Growth Fund (select NIFTY 50 stocks). Both are classed as very high risk, and you bear the investment risk.
What do I get at maturity?
The unit fund value plus a refund of the mortality charges deducted for life cover, provided all premiums have been paid. The fund value is not guaranteed.
What are the Guaranteed Additions?
Added at the end of years 6, 10, 15, 20 and 25 for in-force policies: 3%, 6%, 12%, 15%, 18% of one annual premium if it is below ₹48,000, or 5%, 10%, 20%, 25%, 30% if it is ₹48,000 or more.
Can I take a loan or withdraw money?
Loans are not available. Partial withdrawals are allowed after the 5-year lock-in, from 20% to 35% of the fund per year depending on the policy year, subject to a minimum balance.