HomePersonal FinanceLife InsuranceLIC Index Plus ULIP Plan 873 

LIC Index Plus ULIP Plan 873 

LIC of India has set a new standard in Unit Linked Insurance Plans (ULIPs) with the launch of its latest offering, LIC Index Plus Plan 873, effective from February 6th, 2024. This innovative plan combines the dual benefits of life insurance coverage and savings, promising policyholders a secure financial future.

LIC index Plus

LIC Index Plus ULIP Plan 873

LIC’s Index Plus Plan 873 is designed as a Regular Premium, Individual Life Insurance Plan, offering a unique blend of insurance protection and investment growth. Let’s delve into the key features of this groundbreaking plan:

Flexible Fund Options

Policyholders have the flexibility to choose between two distinct fund options:

  1. Flexi Growth Fund
  2. Flexi Smart Growth Fund

These funds enable strategic investment primarily in selected stocks from the NSE NIFTY 100 index or NSE NIFTY50 index, ensuring diversified growth opportunities tailored to individual risk appetites.

Key Features – LIC Index Plus Plan 873 

  • Premium Payment Options: Policyholders can opt for monthly, quarterly, half-yearly, or yearly premium payment modes, providing convenience and flexibility.
  • Enhanced Insurance Coverage: Enjoy insurance coverage of up to 7 times for ages above 51 and up to 10 times for ages below 51, ensuring comprehensive protection for you and your loved ones.
  • Fund Switching: Flexibility to switch between funds up to 4 times a year empowers policyholders to optimize investment strategies in line with market dynamics.
  • Partial Withdrawal: Access funds for unforeseen financial needs after the 5th policy year, providing liquidity without compromising long-term investment goals.
  • Guaranteed Additions: Benefit from guaranteed additions as a percentage of the annualized premium, enhancing the overall value of your investment over time.
  • Surrender Facility: The option to surrender the policy after the lock-in period of 5 years provides liquidity and financial flexibility as per evolving life circumstances.
  • Additional Riders: Customize your policy with optional riders such as accidental rider for added financial protection against unforeseen events.

LIC Index Plus Plan No 873 – Eligibility

Minimum entry age – 90 days to 50 years for Basic Sum Assured- 7 times and 10 times of annualized premium , 51 years to 60 years for Basic Sum Assured- 7 times of annualized premium

Maximum entry age – 65 years

Minimum maturity age -18 years 

Maximum maturity age 75 years – 10 times the annualized premium and 85 years – 7 times the annualized premium

Policy term – 10 years to 25 years according annualized premium

Minimum Premium Rs. 30,000 yearly, Rs. 15,000 quarterly, Rs. 7,500 half yearly, Rs. 2,500 monthly – NACH

Maximum Premium – No Limit

Lock-in period – 5 years

Basic Sum Assured – Below age 51 years: 7 times and 10 times of annualized premium, Above age 51 years: 7 times of annualized premium

Unlocking Benefits: The Advantages of LIC Index ULIP Plus 873

Comprehensive Death Benefits:

  • In the unfortunate event of the policyholder’s demise before the stipulated maturity date:
    • For death before the commencement of risk: The Unit Fund Value is payable.
    • For death after the commencement of risk: The highest of Basic Sum Assured (less partial withdrawals), Unit Fund Value, or 105% of total premiums received (less partial withdrawals) is payable, ensuring financial security for your loved ones.

Maturity Benefits:

  • Upon surviving the stipulated Date of Maturity or the policy term, the policyholder is entitled to receive an amount equal to the Unit Fund Value, securing a financially stable future.

Refund of Mortality Charges:

  • Upon surviving the stipulated Date of Maturity, policyholders are eligible for a refund equal to the total amount of mortality charges deducted, further enhancing the returns on investment.

It’s important to note that mortality charge refunds are not applicable for discontinued or paid-up policies or during policy surrender.

Guaranteed Additions: 

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 durations of policy years.

End of Policy YearGuaranteed Additions (as percentage of annualized Premium)
6For annualized premium less than 48,000 = 3%

For annualized premium 48,000 and above = 5%

10For annualized premium less than 48,000 = 6%

For annualized premium 48,000 and above = 10%

15For annualized premium less than 48,000 = 12%

For annualized premium 48,000 and above = 20%

20For annualized premium less than 48,000 = 15%

For annualized premium 48,000 and above = 25%

25For annualized premium less than 48,000 = 18%

For annualized premium 48,000 and above = 30%

LIC Index Plus Investment Fund Types

(1) Flexi Growth Fund
Investment in Govt Securities / Corporate Debt – 0% to 20%
Short Term investments incl money market instruments – 0% to 40%.
Investment in Equity – 40% to 100%
The risk profile is Very High.
(2) Flexi Smart Growth Fund
Investment in Govt Securities / Corporate Debt – 0% to 20%
Short Term investments incl money market instruments – 0% to 40%.
Investment in Equity – 40% to 100%
The risk profile is Very High.

Conclusion

LIC’s Index Plus Plan 873 emerges as a frontrunner in the ULIP landscape, offering a perfect blend of security, flexibility, and growth potential. With its innovative features and comprehensive benefits, this plan is poised to redefine the way individuals perceive and engage with insurance-linked investments. Embrace the future of financial security with LIC’s Index Plus Plan 873 and unlock a world of possibilities for a brighter tomorrow.

Shitanshu Kapadia
Shitanshu Kapadiahttp://moneyexcel.com/
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion. We do not offer any stock tips, investment, insurance or finance product related advice. Please consult a qualified financial planner and do your own due diligence before making any investment decision.
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