LIC Index Plus Plan Details

Let's first understand the basics of the LIC Index Plus plan:

What is LIC Index Plus?

LIC Index Plus 873 is a unit-linked insurance plan (ULIP), which implies that part of the premium is utilized for providing life cover while the remaining part is invested in the stock market indices. Apart from the basic cover, the LIC Index Plus plan gives the option to the policyholder to raise the cover by adding the LIC's Linked Accident Benefit Rider.

The fund options under the LIC Index Plus plan are:

• Flexi Growth Fund

• Flexi Smart Growth Fund

Now, let's get to the bottom of the LIC Index Plus plan:

Index Plus LIC 873 Plan details

• Life Insurance Coverage: The LIC Index Plus plan provides a death benefit to protect your family financially if you pass away early. The nominee will be paid either the higher of the sum assured or the fund value.

• Investment in Equity Markets: The LIC Index plus 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 have the choice to regularly pay premiums, for a short period, or even make a single premium payment.

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

• Refund of Mortality Charges: Mortality charges for life cover are refunded if you survive tIll the plan’s maturity.

Additional LIC Index Plus Plan Details

In addition to the plan’s benefits and what is provides the policyholders, the following are some other LIC Index Plus plan details that are important for the policyholders to know.

Free Look Period:
The LIC Index Plus plan offers a 30-day free-look period.The LIC Index Plus plan offers a 30-day free-look. If you are dissatisfied with the LIC Index Plus plan details after purchasing, you can return the policy to LIC and within 30 days.

Grace Period:
For LIC Index Plus, the grace period is generally 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. This is one of the most important LIC Index Plus plan details that the customer should be aware of in case of missed premiums.

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

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:

There are various charges under the LIC Index Plus plan as follows: 

• 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 Accident Benefit rider is chosen.

• Partial Withdrawal Charge: Levied on partial withdrawals.

• Miscellaneous Charge: Applied for alterations during the contract.

• Tax Charge: Taxes on applicable charges.

Revival Period:
When you don't pay the premium and the policy is discontinued, you get a revival period during which you may renew your policy. In the case of the LIC Index Plus, the revival period is usually 2 years from the date of the first unpaid premium. To revive the policy, you must pay all the outstanding premiums along with the interest.

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.

Benefits of LIC Index Plus Plan

• 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 offers the advantage of both life insurance and wealth creation, thus combining the two into one financial product.

• Optional Rider Benefit: The Linked Accidental Death Benefit Rider of LIC can be taken at any policy anniversary, provided the remaining term is at least five years and the life assured is under 65. The rider gives a single payment equal to the Accident Benefit Sum Assured in case of accidental death, provided the policy is in force.

• Tax Benefits: You might be able to claim a tax deduction for the premiums paid under Section 80C of the Income Tax Act, whereas the maturity amount is, in most cases, tax-free under Section 10(10D).

• Customization: The Index Plus LIC plan can be aligned with your financial objectives, risk tolerance, and investment choices.

• How to Buy LIC Index Plus from Policybazaar?

You can purchase LIC Plans from Policybazaar without any hassle by merely following the steps illustrated below:

Step 1: Click on LIC at the Policybazaar homepage.

Step 2: Provide your name and contact number in the form. Then click on View Plans.

Step 3: Enter your age, city of residence, and annual income on the next page.

Step 4: Find the LIC Index Plus plan among the list of plans. Review the LIC Index Plus Plan details and change the amount, policy tenure, and other details as per your preference.

Step 5: Use the online platform to make your premium payment.

Wrapping It Up

The LIC Index Plus plan details show how the policy combines life insurance with market-linked investment options. The LIC Index Plus plan is designed to satisfy different financial needs through its features such as the flexibility in premium payments, the possibility of high returns, and the built-in protections like the free look period and the grace period. By going through these LIC Index Plus 873 plan details, you equip yourself with the right knowledge to make the right decision that will help you and your loved ones secure your tomorrow.

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