LIC Nivesh Plus 749

LIC Nivesh Plus- An Overview

LIC Nivesh Plus 749 is a unit-linked insurance plan (ULIP) that, in addition to providing life insurance benefits, also offers an investment element. Offered by the Life Insurance Corporation of India (LIC), Nivesh Plus 749 lets you invest your premiums across different funds based on your risk appetite. Besides, the policyholder can decide the sum assured when buying an LIC policy.

• Bond Fund is suitable for investors who prefer a relatively conservative investment approach focused on debt and money-market instruments. However, returns are not guaranteed.

• Secured Fund introduces to a mix of investment instruments. Investors should review your asset allocation and risk profile before choosing it.

• Balanced Fund provides a combination of debt and equity exposure. With this, investors shall participate in market movements while maintaining a diversified investment approach.

• Growth Fund offers equity-market exposure. Helpful in long-term growth for investors who are willing to accept fluctuations in investment value.

What are the Key Features of LIC Nivesh Plus Plan 749?

The LIC Nivesh Plus Plan is a non-participating, single-premium, unit-linked life insurance plan offering both protection and investment opportunities. Here are its key features:

• Life Cover: Enjoy life insurance protection throughout the LIC Nivesh Plus 749 policy term.

• Guaranteed Additions: A percentage of the single premium is added to your unit fund at specific intervals to boost your investment.

• Flexibility to:

  • Choose your sum insured type based on your financial goals.

  • Select from different investment funds as per your risk profile.

  • Pick your Basic Sum Assured as 1.25 or 10 times your premium (as per age limits).

  • Decide on the policy term and premium amount.

  • Choose how your family will receive the death benefit, lump sum or in installments.

  • Liquidity Support: Partial withdrawals are allowed in the Nivesh Plus 749 plan to help meet urgent financial needs.

• Extra Coverage: Option to add LIC’s Linked Accident Benefit Rider for enhanced protection.

What is the Eligibility Criteria of LIC Nivesh Plus Plan?

What are the Benefits of LIC Nivesh Plus Plan?

LIC Nivesh Plus Plan 749 offers several benefits to its policyholders. They are as follows:

Death Benefit
If the policyholder dies during the policy term, the nominee will get a death benefit from the Nivesh Plus LIC plan. The death benefit paid will be:

• Basic Sum Assured less Partial Withdrawals, if any, made during the two-year period immediately preceding the date of death; or

• Unit Fund Value.

Maturity Benefit
If the policyholder survives the LIC Nivesh Plus 749 policy's maturity date, he will be paid a sum equal to the Unit Fund Value.

Guaranteed Additions
A fixed percentage of the Single Premium amount paid keeps getting added to the Policy Unit Fund once the LIC Nivesh Plus Policy has completed a specific number of years. They are as follows:

• At the end of 6 years – 3%

• At the end of 10 years – 4%

• At the end of 15 years – 5%

• At the end of 20 years – 6%

• At the end of 25 years – 7%

Rider benefit
A customer can obtain rider Benefits provided the LIC Nivesh Plus Plan 749 has an outstanding term of 5 years. Under the plan, the policyholder can avail of LIC’s Linked Accidental Death Benefit Rider for enhanced protection against accidental death.

Tax Benefits
Under the income tax laws, the LIC Nivesh Plus plan 749 qualifies for tax benefits. The premiums qualify for deductions up to ₹1.5 lakh under Section 80C. The maturity proceeds from this plan are tax-free (subject to conditions) under Section 10(10D). The death benefit from the Nivesh Plus plan is also tax exempt.

You can read about LIC Nivesh Plus in Hindi for more understanding. Also, to better understand the potential returns and benefits of the LIC Nivesh Plus Plan, you can use the LIC Nivesh Plus 749 Calculator. Let us learn more about this calculator and how it shall help you in understanding your policy benefits.

LIC Nivesh Plus Calculator

The LIC Nivesh Plus Calculator is an online tool that projects returns on investment in your Nivesh Plus policy. This is a smart tool that gives you instant results. Using this calculator, you can calculate your maturity value, the expected value of total fund and premium value. All you need to do is enter your investment amount, the fund option you select and the total policy term.

Also known as Nivesh Plus LIC calculator, this free tool is offered by LIC to help investors make informed decisions. However, it is important to note that this calculator is only for the purpose of illustration and analytical observation. The projected returns are not guaranteed as they are linked to market performance and other such factors.

Using the LIC Nivesh Plus Returns Calculator, you can check the policy benefits, death benefits, and maturity benefits of your LIC Nivesh Plus Policy 749.

The LIC Nivesh Plus Returns Calculator works similarly to a standard LIC calculator. Users simply need to select the specific policy at one of the calculator's steps.

Sample Premium Illustration of Nivesh Plus LIC Policy

The LIC Nivesh Plus Policy premiums are to be paid as single premiums compulsorily.

The minimum premium is Rs 1,25,000, and all premiums are payable in multiples of Rs. 5000 only. The maximum premium a policyholder wishes to pay is unlimited.

Let us take an example to understand how the policy functions.

Mr Sharma is a 30-year-old who purchased an LIC Nivesh Plus policy for Rs. 1.25 Lakh, payable at one time, for a policy duration of 20 years. He gets two options for the death benefit cover:

• Option 1 is when the Basic Sum Assured is 1.25 times the single premium.

• Option 2 is when the Basic Sum Assured is 10 times the single premium.

Option 1: Basic Sum Assured = 1.25*Single Premium

If Mr. Sharma chooses Option 1, then the benefits available as per the assumed investment returns is shown in this table below:

Therefore, if Mr. Sharma survives the entire policy term, then the maturity benefit on the date of maturity shall be as shown below:

From the above calculations, it is concluded that the net yield on the projected rate of investment @ 8% p.a. is 6.79%.

Option 2: Basic Sum Assured = 10*Single Premium

If Mr. Sharma chooses Option 2, then the benefits available as per the assumed investment returns is shown in this table below:

Therefore, if Mr. Sharma survives the entire policy term, then the maturity benefit on the date of maturity shall be as shown below:

From the above calculations, it is concluded that the net yield on the projected rate of investment @ 8% p.a. is 6.79%.

Points to Remember:

• The above two illustration tables are for a non-smoking individual who has purchased the policy offline and has not opted for the LIC’s Linked Accidental Death Benefit Rider.

• The illustrations have assumed the projected investment rate of return as 4% and 8% but these are not the guaranteed values and also not the upper or lower limits. The exact percentage of return you get depends on many factors decided by LIC and their underwriting rules. Future investment performance is one such factor.

• The above illustrations are as per the prevailing tax charges which shall change from time to time.

• The aim of this sample illustration is for you to understand the features of LIC Nivesh Plus Plan 749 and how the benefits change with different circumstances.

• The illustration is just an example to show the calculation by assuming the rate as 4% and 8%. These rates are not fixed and in no way comment on the future performance of the ULIP fund.

What are the LIC Nivesh Plus 749 Plan Details?

The LIC 749 plan details show how Nivesh Plus LIC offers flexibility with options like partial withdrawals, fund switching and a settlement option for beneficiaries. The LIC Nivesh Plus 749 plan details also include charges, switching of funds, a free-look period and other key features.

• Partial Withdrawals
  Partial withdrawals can be made after 5 years on policy commencement, subject to certain factors such as the policyholder's age and other considerations determined by the company. After a partial withdrawal, the Basic Sum Assured will be reduced by the amount withdrawn for the subsequent two years. However, the Basic Sum will be reinstated automatically after two years.

• Switching
  The policyholders can change between the four fund types throughout the LIC Nivesh Plus 749 policy duration. When they decide to switch, the entire Fund Value will be transferred to the newly chosen Fund.

• Settlement Option
  The Settlement Option of the LIC Nivesh Plus 749 policy allows the nominee to receive the Death Benefit in installments. This choice can be made during the policy's lifetime, specifying the installment mode and a period of up to 5 years. Once the option is opted, the nominated individual will receive the death claim amount accordingly.

• Charges under the Plan
  LIC Nivesh Plus involves several charges that shall affect the value of your investment. Understanding these costs is important when estimating the amount you may receive at maturity.

  The main charges are:

  • Miscellaneous Charge: A charge for other policy-related services or administrative expenses, as specified in the policy terms.

  • Tax Charge: The charge for applicable taxes or statutory levies imposed on policy-related charges, as per prevailing regulations.

  • Discontinuance Charge: This shall apply when a policy is discontinued.

  • Partial Withdrawal Charge: This shall be deducted when a partial withdrawal is made.

  • Switching Charge: A charge may apply when switching between funds after the free switches permitted under the policy.

  • Fund Management Charge: This charge covers the management of the investment fund and is reflected in the fund's net asset value.

  • Accident Benefit Charge: The charge for providing additional accidental death benefit coverage under the policy.

  • Mortality Charge: This covers the cost of life insurance protection and depends on the applicable policy terms and sum at risk.

  • Premium Allocation Charge: A portion of the single premium is deducted as a charge before the balance is used to purchase units.

• Free Look Period
  If unsatisfied with the LIC Nivesh Plus 749 plan, policyholders can return the policy within 30 days and a refund will be based on the value of units, unallocated premiums, and other specific deductions.

• Policy Surrender
  Policy can be surrendered at any time during the term. If surrendered within a 5-year lock-in period:

  • Unit Fund Value (less Discontinuance Charges) will be transferred to the Discontinued Policy Fund.

  • Proceeds payable after lock, in period.

If the life assured dies before 5 years, the proceeds are paid to the nominee immediately. After the lock-in period, the entire Unit Fund Value without any Discontinuance Charges will be paid. Once a policy is surrendered, it cannot be reinstated even during the lock-in period.

How to buy LIC Nivesh Plus 749 from Policybazaar?

The following steps will help you to buy your LIC Nivesh Plus Policy through Policybazaar:

Step 1: Go to LIC on Policybazaar.

Step 2: Fill in your details, such as your name and contact number, in the form on the page. Once you've done so, click the “View Plans” tab. Provide your resident city, age, and annual income.

Step 3: Now click on LIC Nivesh Plus and click on “View Details”.

Step 4: Once done, review all the details and proceed to checkout.

Step 5: Pay your premiums online, and your policy documents will be sent to your registered email address.

Which Documents are Required for LIC Nivesh Plus 749 Policy?

What is Not Covered in LIC Nivesh Plus Plan?

Some of the LIC Nivesh Plus Plan exclusions include suicide. If a policyholder commits suicide within 12 months from the date of starting of the policy, the Unit Fund Value will be payable to his nominee or beneficiary on the day that the corporation is informed of his death. A death certificate is mandatory in such a case. The LIC Nivesh Plus Policy 749 will be terminated, and no claims will be made.
Any charges except the Fund Management Charges charged to the policyholder after the date of death will be added back to the Fund Value.
Similarly, any Guaranteed Additions that might have been added after the date of death will then be subtracted from the Unit Fund.

What to Know Before Investing in LIC Nivesh Plus?

Before investing in LIC Nivesh Plus Plan 749, check the following pointers and see if this is actually what you want from your life insurance and investment plan.

• Single-premium commitment: The plan requires a large single lump-sum premium rather than regular premium payments.

• Market-linked returns: The investment value depends on the performance of the selected fund. The rates are generally illustrated as 4% and 8% but these are not guaranteed.

• Five-year lock-in: Complete or partial withdrawals are restricted during the first five policy years.

• Policy charges: Charges affect the amount invested and the final fund value. Review the applicable and additional charges before purchasing the plan.

• Choice of life cover: The Basic Sum Assured can be selected as 1.25 or 10 times the single premium. Consider whether the resulting cover is sufficient for your family's financial needs. Check sample illustration above to get a better idea.

• Tax treatment: Tax benefits depend on the applicable tax laws and the policy meeting the relevant conditions.

Is LIC Nivesh Plus a Good Investment?

Whether LIC Nivesh Plus Plan 749 is a good investment or not is subjective to the fact that are you willing to invest in a market-linked insurance policy? The benefit of the plan is that it gives both life insurance and opportunities to build wealth within the same policy. However, the premiums may be more than a traditional life insurance policy that offers only protection. Similarly, the returns may be less than a market-linked investment or mutual fund that does not offer life insurance protection. Therefore, it is for you to decide what you want from your policy. If you’re looking for both benefits under the same plan, then LIC is a reliable insurer and worth considering.

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