Review of LIC Index Plus

LIC of India offers Index Plus as a regular premium paying life insurance plan with a lock-in period of 5 years so potential policy buyers looking for a long-term investment can opt for this plan for wealth accumulation. This life insurance plan permits the customer to choose the type of investment fund, amount of premium payable, methods of settlement of death benefit and even the basic sum assured.

What is the LIC Index Plus Plan?

LIC Index Plus Plan is a Unit Linked, Non-Participating, Regular Premium, Individual Life Insurance plan that combines life insurance coverage with investment opportunities. It offers flexibility in choosing the type of investment fund, sum assured, and premium amount. The plan provides life insurance cover throughout the policy term, a refund of mortality charges at maturity, and guaranteed additions to the unit fund at specific intervals.

What is the Eligibility Criteria of LIC Index Plus?

Learn about How LIC Index Plus Changed Sarita’s Life

I recently bought an Index Plus LIC plan and I already feel the security and peace that it has brought to my mind. It has provided me with financial security along with the added benefit of investment growth. This long-term savings and life insurance plan not only provides financial security but also is a standout choice for comprehensive coverage. By Sarita Rai

LIC's Index Plus plan helped Miss Sarita to secure her financial future by choosing a unit linked life insurance plan that provides life insurance along with a long-term investment option. By choosing this LIC of India policy, Sarita ensured substantial protection for her family. Choosing the type of investment fund allowed her to tailor the plan according to her risk appetite to maximize the potential returns. The plan's guaranteed additions and partial withdrawal options also provided flexibility and additional financial security throughout the policy term.

What are the Benefits of LIC's Index Plus Plan?

Index Plus plan by LIC comes with several benefits some of which are mentioned below:

• Life Insurance Cover: LIC Index Plus 873 offers risk cover to the policyholder for the chosen policy term. So if something unfortunate happened to Miss Sarita, the beneficiary is liable to receive a death benefit to protect their financial needs in her absence.

• Refund of Mortality Charges: On surviving till maturity, the total mortality charges deducted are refunded, excluding any extra charges due to underwriting decisions and taxes. Refund of mortality charges is only payable if all the premiums are duly paid.

• Guaranteed Additions: As a percentage of one annual premium, guaranteed additions will be added to the unit fund on completion of specific policy years. Guaranteed additions are only applicable if the policy is in-force and all due premiums have been paid.

• Flexibility to Choose: The policyholders under Index plus 873 policy have the flexibility to choose their preferred type of investment funds based on their risk appetite, select their sum assured, decide on the premium amount, and choose the policy term as per their own financial obligations and goals.

• Partial Withdrawals: After a 5-year lock-in period, policyholders are permitted to partially withdraw the units anytime. For minors, it is only applicable when they cross 18 years of age. Maximum amount of partial withdrawals as a percentage for every policy year is different and is given below:

• Optional Rider Available: The policy owners can choose different riders to enhance their risk coverage in return of a minimal premium increment. Optional rider available under 873 LIC policy is LIC’s Linked Accidental Death Benefit Rider which provides Accident Benefit Sum Assured to the nominee (as a lump sum) in case the policyholder dies in an accident.

Policy Details of LIC Index Plus

• Grace Period: If the policyholder fails to make a premium payment, then a grace period of 15 to 30 days is provided to make the payment for due premiums. The duration of grace period depends on the premium payment frequency like monthly, quarterly, half-yearly and even yearly. For monthly payments it is 15 days and for others it is 30 days.

• Switching Investment Funds: If the life assured wishes to switch between two investment funds, they can do so with ease under LIC Index Plus. Four free switches are allowed per policy year and subsequent switches will cost Rs.100/switch.

• Settlement Option: The life assured can choose the option to receive the death benefits in installments over a maximum span of 5 years from the intimation. A death certificate will be required at the time of settlement and no changes at the time of claim shall be entertained.

• Flexible Premium Payment Modes: The policyholder chooses their preferred payment frequency like yearly, half-yearly, quarterly, or monthly and also has the liberty to change the premium payment frequency at any policy anniversary.

• Investment of Funds: Policyholders can choose between two types of funds to invest their premiums. Premium allocation charges are deducted and thereafter the amount is used to purchase units of the selected funds. If LIC closes any funds, then an intimation is received 3 months in advance that gives the policyholder enough time to switch to different investment funds.

LIC Index Plus is a Good or Bad Plan?

Index plus plan by LIC is a quality choice for people because it merges both life insurance and transparent investment opportunity under a reliable government insurer. LIC also offers several flexible options regarding type of funds and premium payment modes as per the customers comfort. Hence, it is a smart financial planning choice to secure the future of your loved ones and elevate your peace of mind. Just like Miss Sarita, you can also ensure the security of your loved ones' future.

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