LIC’s Index Plus Plan no. 873 is a Unit Linked Insurance plan (ULIP). It is a Regular Premium, Individual Life Insurance plan which offers life insurance with investment, allowing policyholders to invest in equity market through major indices Nifty 50 & Nifty 100 during the term of the policy.
Why should you buy LIC’s Index Plus Plan no. 873?
- Risk cover and savings through equity-based investment.
- Option to choose the sum assured, policy term and amount of premium you desire to pay.
- Premium as low as Rs.2,500/- per month. No limit to maximum premium amount.
- Choice of investing premiums in one of the two types of funds (NSE Index Nifty50 & Nifty100).
- Attractive Guaranteed Additions at different intervals under an In-force policy.
- Guaranteed Additions are utilized to purchase units as per the opted fund type.
- Liquidity through partial withdrawals and by way of surrendering of policy after 5 years.
- Refund of Mortality charges under the policy on Maturity.
- Switching of funds permitted without any applicable tax. (Unlike equity mutual funds)
- Settlement option available to take Death benefit proceeds in installments.
- Partial withdrawal permitted after the lock-in period of five years.
- Optional Rider “LIC’s Linked Accidental Death Benefit Rider” benefit, subject to the eligibility.
Who are eligible to buy this plan?
- All male and female lives (minor + major) including housewives and pregnant ladies.
- The Plan is allowed to NRIs and FNIOs subject to terms and conditions apply.
- The Plan is allowed to persons with disability (Physically Challenged) who are gainfully employed.
- The Plan is allowed to Transgender subject to terms and conditions apply.
Qualifying criteria for this plan
- Resident Indian residing in India.
- NRI’s can apply subject to the condition that the applicant is residing in any one of the permissible countries (List provided in LIC’s website under the section “NRI Centre”).
- Minimum entry age: 90 Days (Completed) and Maximum entry age: 60 years (nearer birthday)
- Policy Term: 10 to 25 years (based on Annualized premium)
- Basic Sum Assured: 7 or 10 times of Annualized Premium.
- Minium Maturity age: 18 years (completed) and Maximum Maturity age – 85 years (nearer birthday)
- Subject to financial and medical underwriting.
Guaranteed Additions in LIC’s Index Plus
Guaranteed additions shall be payable only under an in-force policy i.e. if all due premiums have been paid. Guaranteed Additions as a percentage of one Annualized Premium as mentioned in the Table below shall be added to the Unit Fund on completion of specific duration of policy years provided all due premiums have been paid and the policy is in-force.
| End of Policy Year | Guaranteed Addition* for annual premium less than 48000/- | Guaranteed Addition for annual premium 48000/- and above |
|---|---|---|
| 6 | 3% | 5% |
| 10 | 6% | 10% |
| 15 | 12% | 20% |
| 20 | 15% | 25% |
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute professional advice. While full efforts have been made to ensure the accuracy of data and numbers, no responsibility is taken for any errors or omissions. Tax implications on insurance, investments and returns from related products may change due to updates in tax laws. Always consult with your financial advisor or insurance expert before making any investment or insurance decisions. The author is not responsible for any financial losses or damages incurred as a result of relying on the information in this blog.
