Review of LIC Nivesh Plus Plan

"I recently bought the well-known LIC Nivesh Plus plan on a friend's recommendation. It's a non-participating ULIP, and I'm satisfied knowing it will secure my family's financial requirements at every growing stage of life," says Mrs. Geeta Sarkar, who invested in the plan in 2021 to protect her family's long-term financial future while working toward her own future goals.

Let's look at what convinced her and what the plan actually offers.

Inside the Plan!

• The LIC Nivesh Plus plan is a non-par, single-premium, Unit-Linked Investment plan.

• It combines life cover with an investment component.

• With this LIC single premium policy, you can get life cover of either 1.25x or 10x your premium

• LIC Nivesh Plus has a 5-year lock-in period.

• The Nivesh Plus plan is one of those LIC single premium plans in which customers can choose from Growth, Balanced, Secured, and Bond funds.

• The LIC Nivesh Plus plan (749) is a good option for someone who wants insurance and investment components in a single plan. For someone who prefers separate financial options for savings/wealth creation and life cover, there are other LIC life insurance plans that are more suitable.

About LIC Nivesh Plus Plan 749

The Nivesh Plus Plan offered by the LIC of India is a unit-linked, single-premium plan that offers the dual benefits of insurance and investment. The plan secures you and your family’s financial needs and also provides several benefits to the policyholders at affordable rates. It comes with the optional LIC Accidental Death Benefit Rider (ADB), which provides the accident benefit sum assured in a lump sum, along with the death benefit under the base plan if the policyholder dies from an accident.

In this LIC Unit-linked plan, you receive Guaranteed Additions at specific milestones. (6th year: 3%, 10th year: 4%, 15th year: 5%, 20th year: 6%, and 25th year: 7%). If the policyholder survives the policy term, the policy will mature, and the total unit fund value will be paid out. The total unit fund value is calculated using Net Asset Value (NAV) as per your fund type.

Benefits of LIC Nivesh Plus Plan

Below-mentioned are some of the benefits a policyholder can avail under the Nivesh Plus Single Premium LIC policy:

Death Benefit
In case the policyholder dies before the risk commencement begins, the nominee of the policy will receive an amount equal to the Unit Fund Value as on the date of intimation of death. If the policyholder dies after the date of risk commencement, the nominee of the policy will receive an amount that is higher of either the Basic Sum Assured less partial withdrawals or Unit Fund Value.

Maturity Benefit
If the policyholder survives till the maturity date of the policy, a sum equal to the Unit Fund Value will be payable to him

Guaranteed Additions
The Nivesh Plus LIC single premium plan offers a fixed % of the Single Premium amount which keeps getting added to the Unit Fund once the policy has completed a specific number of years. The guaranteed additions 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
One can avail enhanced coverage by adding LIC Linked Accidental Death Benefit Rider, provided, the plan has an outstanding term of 5 years. One can add this rider to their base policy by paying additional premiums.

Partial Withdrawals
The plan allows the policyholder to partially withdraw funds any time after the fifth policy anniversary. Minors are allowed only after they turn 18 years of age for partial withdrawals.

Fund Switching
Nivesh Plus LIC allows the policyholder to switch between four different types of funds. In case a policyholder makes a switch to a new fund then the entire Fund Value will be transferred to the new fund. You will get 4 free switches per year, and you will be charged ₹100 for each additional switch. The 4 funds are:

• Growth Fund (High Risk)

• Balanced Fund (Medium Risk)

• Secured Fund (Lower to Medium Risk)

• Bond Fund (Low Risk)

Who is Eligible to Buy the LIC Nivesh Plus Plan?

Who Should Consider Buying LIC Nivesh Plan?

• One Time Premium: Potential policy buyers who can invest at least ₹1.25 lakh as a single-premium amount can opt for this LIC 749 plan.

• Market-linked Growth: Nivesh Plus by LIC of India offers both a market-linked growth and a life cover to its policyholder.

• Lock-in: The policy offers a lock-in period of 5 years and a long-term horizon of 10-25 years.

• Flexibility to Choose Fund Type: The life assured has the extreme flexibility to choose the type of fund and even switch between them as the risk varies. The options to choose are Bond, Secured, Balanced, or Growth funds.

• Available for Minors: Parents or guardians looking to start a savings-cum-protection plan in a minor's name. Only a partial withdrawal can be made when the minor is 18 years of age.

Who Should Avoid Buying LIC Nivesh Plus Plan?

• Long Lock-in Period: This policy offers a lock-in period for 5 years and no policyholder is allowed to surrender or withdraw their funds. So people who cannot block their funds for 5 years or are looking for shorter lock-in periods should avoid opting for this policy.

• More Focus on Savings: People whose main focus is life protection then Nivesh Plus plan might not be a fair option as its main focus is on savings and not insurance.

• No Fixed Returns: The policy does not offer fixed returns as the returns are linked to the market. Hence, this policy is not a good choice for risk-averse people.

• Only Lump Sum Premium: Policy buyers who are unable to pay a single lump sum premium upfront should refrain from buying this policy. This LIC policy does not offer any regular or instalment premium payment option.

• No Loan Facility: LIC Nivesh Plus does not offer any loan facility for its users, so individuals who may need a loan against their policy should refrain.

Policybazaar’s Honest Take on LIC Nivesh Plus Plan

LIC Nivesh Plus is a solid choice for someone sitting on a lump sum of ₹1.25 lakh or more who wants their money working across market-linked funds, backed by the trust of LIC, with the added comfort of Guaranteed Additions kicking in at years 6, 10, 15, 20, and 25.

It suits investors with a clear 10 to 25 year horizon who are comfortable letting their investment grow steadily through one of four fund options tailored to different risk appetites.

As with any unit-linked plan, it works best when paired with a separate term insurance policy for primary life cover, since Nivesh Plus is designed first as a savings and wealth-building tool with insurance as a complementary feature.

For investors who match this profile, patient, lump-sum ready, and already protected elsewhere, Nivesh Plus is a dependable addition to a long-term financial plan.

Is LIC Nivesh Plus Good or Bad Plan?

The LIC Nivesh Plus Plan is a Unit Linked Insurance Plan which is designed to offer the dual benefits of both life protection and investment under the same plan. The plan is fully loaded with numerous benefits and features for individuals of all age groups.

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