LIC Index Plus 873 

LIC Index Plus 873- An Overview

LIC Index Plus 873- An Overview LIC Index Plus is a unit-linked, non-participating insurance plan that provides life insurance cover and savings throughout the policy term. The plan offers the flexibility to choose the investment fund(s) based on risk appetite and also has the facility of guaranteed additions at specific policy durations. Partial withdrawals are allowed in the LIC Index Plus plan 873 to meet a liquidity requirement and the plan also gives the option of enhancing cover with LIC Linked Accident Benefit Rider. The fund options available under the LIC Index Plus plan 873 are:

• Flexi Growth Fund (NIFTY50 stocks)

• Flexi Smart Growth Fund (NIFTY100 stocks)

Key Features of LIC Index Plus 873

Flexible Investment Options to choose from:

• • Type of investment fund according to your risk appetite Premium amount payable.

  • Policy term and maturity age.

  • Basic sum assured of 7 or 10 times the annualised premiums.

  • Installments or lumpsum payout.

• Guaranteed Additions: Every year, a percentage of your annual premium is added to your Unit Fund, boosting your earnings and used to purchase more units.

• Enhanced protection with Riders: LIC Index Plus 873 offers additional protection through LIC Linked Accident Benefit Rider.

• Partial Withdrawals: Partial Withdrawals are allowed in LIC Index Plus 873 to take care of liquidity requirements.

• Refund of Mortality Charges: On survival till maturity, the policyholder will receive a refund of mortality charges for life cover. 

These LIC Index Plus plan details make it a comprehensive solution for those seeking both protection and investment growth.

Eligibility Criteria of LIC Index Plus 873

Benefits of LIC Index Plus 873

• Death Benefit:

  If the policyholder passes away before the maturity date, the death benefit depends on when it happens. The beneficiaries receive the invested money (Unit Fund Value) if it occurs before the risk coverage starts. Suppose it happens after the risk coverage begins. In that case, the beneficiaries get the higher of the Basic Sum Assured (minus recent withdrawals), the invested money, or 105% of total premiums paid (minus recent withdrawals). In the LIC Index Plus 873, any charges deducted after death are added back to the invested money, along with any guaranteed additions. The beneficiaries can receive the death benefit as a lump sum or in installments.

•  Maturity Benefit:  

  On Life Assured surviving the date of maturity, an amount equal to Unit Fund Value will be paid. You can use the LIC Index Plus calculator to estimate the final payout.

• Refund of Mortality Charges:

  If the policyholder survives past the maturity date and has paid all due premiums, they will receive an additional benefit. This benefit equals the mortality charges deducted for life insurance coverage and the maturity benefit. If there is a refund, it will not include any additional amount that was charged as a result of underwriting decisions or any tax that was charged on the mortality charges. Keep in mind that the refund of mortality charges in LIC Index Plus 873 does not apply to policies that have been surrendered or discontinued.

• Guaranteed Additions:

  Guaranteed additions are only for active LIC Index Plus 873 policies in which all necessary premiums have been paid. These additions which are figured as a certain percentage of the yearly premium, are added to the investment fund at the specified intervals during the policy period. This bonus rewards maintaining an active policy and fulfilling premium payment obligations.

Additional Benefits of LIC Index Plan 873

• Rider Benefit:

  You can choose LIC's Linked Accidental Death Benefit Rider at any policy anniversary, given that the remaining policy term is at least 5 years but no later than the policy anniversary when the life assured is turning 65. This rider provides coverage until the Date of Maturity or until the policy anniversary when the life assured is 70, whichever comes earlier, as long as the policy is active during an accident. If opted for, in the event of accidental death, the Accident Benefit Sum Assured will be paid as a lump sum. This rider does not apply to policies on the life of minors or during the life assured's minority. The Accident Benefit Sum Assured cannot exceed the Basic Sum Assured.

• Fund 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.

• Partial Withdrawals:

  After keeping the policy for at least 5 years, you can take out some of your money if needed. If the policy is for a minor, withdrawals are allowed only once they turn 18. You can take out a fixed amount or a specific number of units. The maximum withdrawal amount depends on how long you've had the policy. However, you must keep a minimum amount in the policy active. 

  There's a charge for each withdrawal, and any guaranteed additions will be reduced. If you withdraw, the insurance amount is temporarily lowered but returns to the original amount after two years.

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

• Settlement Option:

  If the insured person passes away, the beneficiary can receive the money in installments over up to 5 years. The policyholder can make this choice while the insured person is still a minor or by the insured person once they are 18 or older. The payment frequency (yearly, half-yearly, quarterly, or monthly) needs to be specified in writing along with the death certificate. Once the option is chosen, the beneficiary cannot change it.

LIC Index Plus Plan 873 Fund Performance & NAV

LIC Index Plus Plan 873 offers two market-linked equity funds that invest in index-based portfolios linked to the Nifty 50 and Nifty 100. The latest LIC Index Plus NAV trends show moderate growth since launch, reflecting overall market movement.

LIC Index Plus NAV Performance

The LIC Index Plus NAV rate today reflects the market value of the fund's underlying equity investments. Here are some more details: 

• Both funds were launched with a base NAV of around ₹10 and have grown above ₹12, indicating appreciation since inception.

• The Flexi Smart Growth Fund has slightly outperformed the Flexi Growth Fund over the past year.

• Short-term returns turned negative over the last 3 months due to market volatility, while 6-month and 1-year returns remain positive.

• Since these are index-linked ULIP funds, their performance depends directly on equity market movements.

Which LIC Index Plus Fund is Better?

• Flexi Smart Growth Fund: Suitable for investors seeking exposure mainly to large-cap Nifty 50 companies.

• Flexi Growth Fund: Offers slightly broader diversification through Nifty 100 exposure.

Investors should remember that NAV in ULIPs fluctuates daily based on market performance, and past returns do not guarantee future results.

LIC Index Plus Plan Details

• Free Look Period:

  Policyholders have 30 days from receiving the policy document to review and return it if they are not satisfied. The refund includes the value of units, unallocated premium, mortality and accident benefit charges, and tax charges, minus the cost of medical examinations and stamp duty.

• Grace Period:

  The policyholders get a grace period of 30 days for yearly, half-yearly, or quarterly premiums and 15 days for monthly premiums (NACH) from the date of the first unpaid premium.

• Surrender:

  The policy can be surrendered at any time. If surrendered within the 5-year lock-in period, the Fund Value (after deducting the Discontinuance Charge) is moved to the Discontinued Policy Fund. No risk cover applies during this time. The proceeds are paid at the end of the lock-in period or earlier in case of death. If surrendered after 5 years, the full Fund Value is paid without any charges. Reinstatement is not allowed.

• 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 primarily investing in select stocks from the NSE NIFTY50 Index.	Very High Risk

• Charges under the LIC Index Plus Plan 873:

  • Premium Allocation Charge: Deducted from the premium.

  • Mortality Charge: Covers the cost of life insurance.

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

  • Fund Management Charge: Percentage of the fund value.

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

  • Switching Charge: Applied when changing funds.

  • Partial Withdrawal Charge: Levied on partial withdrawals.

  • Discontinuance Charge: Applied if the policy is discontinued.

  • Tax Charge: Levied on applicable charges.

  • Miscellaneous Charge: Applied for alterations during the contract.

What is Not Covered under LIC Index Plus 873?

Death by suicide is not covered in the LIC Index Plus plan. Suppose someone passes away due to suicide within the first 12 months of starting or reviving the policy. In that case, the nominee or beneficiary gets the money invested (Unit Fund Value) and a death certificate. No other claims are accepted, and the policy ends. Any extra charges and taxes, except for investment-related charges, are returned. Any extra money added after death is taken from the investment.

How to Buy the LIC Index Plus Plan?

You can buy LIC Index Plus plan from Policybazaar by following these easy steps:

Step 1: Visit LIC of India page on Policybazaar. 

Step 2: Provide your name and contact number and click View Plans

Step 3: Fill in your age, resident city, and annual income

Step 4: Choose the LIC Index Plus Plan from the plans shown. Click on Get details

Step 5: Confirm the details like payout amount, premium paying frequency, etc.

After a successful LIC premium payment online for the LIC Index Plus Plan, your plan will be active and coverage will start. 

What to Do In case I Need Advice on LIC Index Plus Policy? 

If you need help understanding the Life Insurance Corporation of India LIC Index Plus Plan, Policybazaar experts can guide you regarding LIC Index Plus NAV today, returns, premium calculation, policy benefits, and fund options. You can contact their support team through the official website, request a callback, or speak with an advisor directly through the following options:

• New Policy Purchase: 1800-208-8787

• Existing Policy Support: 1800-258-5970

• Claims Assistance: 1800-258-5881

• WhatsApp Support: +91 8506013131

• Email Support: care@policybazaar.com

You can contact the support team for:

• LIC Index Plus Plan 873 calculator assistance

• LIC Plan 873 maturity calculator PDF details

• LIC Index Plus NAV today live updates

• LIC Index Plus NAV history and NAV rate today tracking

• Understanding LIC Index Plus returns and charges

• Guidance on Flexi Growth Fund LIC Index Plus options

• Comparing LIC Index Plans and market-linked insurance products

Is It Good to Invest in LIC Index Plus: Policybazaar’s Honest Take 

Life Insurance Corporation of India LIC Index Plus is a plan for the ones who desire life insurance protection as well as market linked wealth creation. That's why, the returns being linked to index performance, it is a fact that the investors with moderate risk appetite and the ones who are ready to invest for a long time period will find such a plan most suitable.

Here is a list of the important things you should be aware of before you invest in LIC Index Plus:

• Provides an opportunity for market-linked growth through index-based investment strategies

• Enables investors to check LIC Index Plus NAV today and the current NAV of LIC Index Plus at their convenience

• Can be used to attain long-term financial goals like retirement or wealth accumulation

• Give the provision of life cover plus the investment benefits under the LIC Index Plus Plan 873

• Investors can check Index Plus 873 NAV today and NAV LIC Index Plus performance on a regular basis

• Since returns are a function of the market, the return on LIC Index Plus plan cannot be guaranteed

• It helps to check out LIC Index Plus Plan returns, charges and fund performance for making an investment decision

• It is suitable for those who are comfortable with market fluctuations and investing over the long-term

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