LIC launched the Index Plus Plan last year, which offers the dual benefit of market-linked returns along with life insurance cover.
This is a non-par, linked, individual savings plan with a minimum monthly premium starting at ₹2,500.
Under this plan, investors can choose from two funds:
NIFTY 50 Flexi Smart Growth Fund
NIFTY 100 Flexi Growth Fund
The plan also comes with the advantage of guaranteed additions.
Key Features of LIC Index Plus Plan
Non-Par (Non-Participating)
The plan is non-participating, meaning policyholders do not get a share in LIC’s profits.
Guaranteed benefits are mentioned upfront at the time of purchase. These do not depend on bonuses or company profits.
Linked Plan
A part of your premium is invested in stock markets, government bonds, or other investment instruments.
The value of your investment depends on market performance, so the NAV (Net Asset Value) can rise or fall.
Investment risk is borne by the policyholder.
Life Cover
The plan provides life insurance cover.
In case of the policyholder’s death during the term, a death benefit is paid to the nominee.
Dual Purpose
Works both as an investment and insurance plan, offering risk cover as well as long-term savings.
Individual Plan
Designed for a single policyholder, unlike group insurance. Benefits are linked directly to the buyer.
Savings Plan
Encourages systematic savings and investment.
Helps in building long-term wealth when markets perform well.
On policy maturity, the insured gets a lump sum maturity benefit.
Premiums, Fund Options, and Guaranteed Additions
Minimum monthly premium: ₹2,500
Investment choices: NIFTY 50 Flexi Smart Growth Fund or NIFTY 100 Flexi Growth Fund
Investors can invest up to 100% of their premium in stocks from the chosen index.
Guaranteed Additions
A percentage of your annual premium is added to your fund after specific intervals, provided the policy is active:
End of 6th year: 5% (₹2,500 on ₹50,000 annual premium)
End of 10th year: 10% (₹5,000)
End of 15th year: 20% (₹10,000)
End of 20th year: 25% (₹12,500)
End of 25th year: 30% (₹15,000)
These additions are credited as units, boosting the overall fund value and maturity benefits.
Risk Factors
As a market-linked product, the plan is affected by stock market performance.
The NAV of units can fluctuate based on market ups and downs.
Investors must understand that the risk of investment is fully borne by them.
Additional Information
For detailed information, you can:
Contact your LIC agent or nearest LIC branch
SMS your city name to 56767474
Visit the official website: licindia.in or download the LIC mobile app
⚠️ Important: Be careful of fraud. Do not respond to fake calls or offers.
