LIC Index Plus Plan Details

Let's first understand the LIC Index Plus plan: 

What is LIC Index Plus?

LIC Index Plus is a non-participating, unit-linked insurance plan (ULIP). This means that part of your premium goes towards life insurance coverage, while the rest is invested in stock market indices. The plan offers the option to enhance coverage with LIC's Linked Accident Benefit Rider.

The fund options available under the LIC Index Plus plan are:

• Flexi Growth Fund

• Flexi Smart Growth Fund

Let’s understand the LIC Index Plus plan details: 

Index Plus LIC 873 Plan details

• Life Insurance Coverage: The plan offers a death benefit to ensure financial security for your family in case of your untimely demise. The nominee will receive the higher sum assured or the fund value.

• Investment in Equity Markets: The returns are linked to the performance of selected stock market indices, which can provide better growth compared to traditional savings plans.

• Flexible Premium Payment Options: You can pay premiums regularly, for a limited time, or make a one-time payment.

• Guaranteed Additions: A percentage of the annual premium is added to your Unit Fund each year, increasing investment value.

• Refund of Mortality Charges: Mortality charges for life cover are refunded on survival till maturity.

Additional LIC Index Plus Plan Details

• Free Look Period:
  The LIC Index Plus plan offers a 30-day free-look period. During this period, you can return the policy if you are unsatisfied and receive a refund of the premium paid minus any charges.

• Grace Period:
  The grace period is the time allowed to pay the premium after the due date without losing the policy benefits. For LIC Index Plus, the grace period is usually 30 days for annual, semi-annual, or quarterly premium payments. This duration is 15 days for the monthly premium paying mode. The policy remains active during this time, and you can pay without penalties.

• Partial Withdrawals:
  After the mandatory five-year lock-in period, you can withdraw your fund partially, which provides financial flexibility as follows:

  Policy Year	Unit Fund Per cent
  6th to 10th	20%
  11th to 15th	25%
  16th to 20th	30%
  21st to 25th	35%

• Switching:
  You can change the investment type of your policy during its duration. When you switch, all your money in the current investment will move to the new one. You get four free switches each policy year, but after that, there's a charge of ₹100 per switch.

• Charges under the Plan:

  • Mortality Charge: Covers the cost of life insurance.

  • Premium Allocation Charge: Deducted from the premium.

  • Fund Management Charge: Percentage of the fund value.

  • Policy Administration Charge: Monthly charge from the 6th policy year.

  • Switching Charge: Applied when changing funds.

  • Discontinuance Charge: Applied if the policy is discontinued.

  • Accident Benefit Charges: This applies if the rider is chosen.

  • Partial Withdrawal Charge: Levied on partial withdrawals.

  • Miscellaneous Charge: Applied for alterations during the contract.

  • Tax Charge: Levied on applicable charges.

• Revival Period:
  If you fail to pay the premium and the policy lapses, you have a revival period during which you can reactivate your policy. The revival period for LIC Index Plus is generally 2 years from the date of the first unpaid premium. You need to pay all due premiums and applicable interest to revive the policy.

• Surrender:
  The policy may be surrendered at any point. If surrendered within the five-year lock-in period, the Fund Value, after deducting the applicable Discontinuance Charge, is transferred to the Discontinued Policy Fund. No life cover is provided during this period. The accumulated amount is payable at the end of the lock-in term, or earlier in the event of the policyholder’s death.

• Investment of Funds:
  The policyholder can decide where their money goes by choosing one of two funds in the Unit Fund. When they pay a premium, the part left after the deduction of charges is used to buy units in your chosen fund.

  Fund Type	Details	Risk Profile
  Flexi Growth Fund	Aims to generate long-term capital appreciation by investing primarily in select stocks from the NSE NIFTY100 Index.	Very High Risk
  Flexi Smart Growth Fund	Aims to generate long-term capital appreciation by investing in select stocks from the NSE NIFTY50 Index.	Very High Risk

Benefits of LIC Index Plus

• Potential for High Returns: Since the Index Plus LIC plan invests in equity markets, it may offer higher returns than traditional insurance products.

• Insurance and Investment: It provides the dual benefit of life insurance and wealth creation, making it a comprehensive financial product.

• Optional Rider Benefit: LIC’s Linked Accidental Death Benefit Rider can be added at any policy anniversary, if the remaining term is at least five years and the life assured is under 65. The rider provides a lump sum payout equal to the Accident Benefit Sum Assured in case of accidental death, as long as the policy is active.

• Tax Benefits: Premiums paid may qualify for tax deductions under Section 80C of the Income Tax Act, and the maturity amount is usually tax-free under Section 10(10D).

• Customization: The Index Plus LIC policy can suit your financial goals, risk appetite, and investment preferences.

How to Buy LIC Index Plus from Policybazaar?

You can now buy LIC Plans from Policybazaar easily by following the below-mentioned steps:

Step 1: Visit LIC on the Policybazaar homepage

Step 2: Fill in the form with your name and contact number, and click on View Plans

Step 3: After this, on the next page, fill in your age, current city and annual income

Step 4: Once done, you will be able to see the LIC Index Plus plan in the plans list. Check the LIC Index Plus Plan details and customize the amount, policy tenure and other details

Step 5: Pay your premiums online to purchase the plan

Note: Policybazaar also provides door-to-door advisors to resolve your queries.

Wrapping It Up

The LIC Index Plus plan details show how the policy combines life insurance with market-linked investment options. The plan caters to various financial needs with features like flexible premium payments, the potential for high returns, and built-in protections such as the grace period and free look period. By understanding these LIC Index Plus 873 plan details, you can make an informed decision and secure your future and that of your loved ones.

LIC Resources

LIC Index Plus FAQs