HomePersonal FinanceLife InsuranceLIC Nivesh Plus Plan No 849 - Single Premium ULIP - Review

LIC Nivesh Plus Plan No 849 – Single Premium ULIP – Review

LIC Nivesh Plus Plan No 849 is a single premium ULIP plan by LIC. LIC Nivesh Plus provides four different fund options for the investment. It is a unit linked, non-participating, single premium life insurance policy. In short, Nivesh Plus is an insurance cum investment policy. In addition to LIC Nivesh Plus, LIC has also launched another product called as SIIP Plan 852.

Like every year, this year also LIC has launched new plans in March month. This is to attract customers who are mainly looking for a last-minute tax-saving instrument. In this post, we will take a look at LIC Nivesh Plus Plan No 849, key features, options, benefits and other facts about this plan. In the end, we will also review LIC Nivesh Plus Plan to decide is it good for investment or not?

Also Read – Top 7 Best LIC Policy for 2019 – 2020

LIC Nivesh Plus Plan No 849 – Key Features & Eligibility 

  • Nivesh Plus is a single premium ULIP plan. This plan provides tax benefits. As it is a one-time payment plan it is a hassle-free investment option.
  • You can invest with a lum sump small amount of 1 Lakh. There is no upper limit for investment.
  • This plan provides four different fund options – Bond, Secured, Balanced and Growth.
  • You can switch freely between these fund options. The switching is allowed four times in a year.
  • You can partially withdraw money after 5th year onwards.
  • This plan provides life cover options. One can select sum assured of 10 times of single premium or 1.25 times of the single premium. If your intention is pure investment you can go for 1.25 times cover. Whereas if you want insurance with tax benefits you can go with 10 times cover.
  • At the policy maturity, you will get the Unit fund value.
  • This plan provides guaranteed additions in addition to the unit fund value.

LIC Nivesh Plus Plan - ULIP 849


Minimum Entry Age – 90 days

Maximum Entry Age -35 years to 70 years as per life cover selection.

Minimum Maturity Age – 18 years

Maximum Maturity Age – 50 years to 85 years

Policy Term

Option 1: If Basic Sum Assured is 1.25 times of Single PremiumOption 2: If Basic Sum Assured is 10 times of Single Premium
For age at Entry up to 25 YearsFor Age at entry 26 to 30 YearsFor age at entry 31 to 35 years
10 to 25 years10 to 25 Years10 to 20 Year10 Years

Nivesh Plus Plan Fund Options

LIC Nivesh Plus Plan provides four different fund options.

Bond Fund – Bond Fund is suitable of the low risk investor. It is relatively safe option where money is invested in fixed income securities. This fund invests 60% of amount in government guaranteed securities and 40% in money market instruments. Equity investment is NIL.

Secured Fund – Secured Fund is suitable for lower or medium risk investor. This option is expected to provide steady income. In secured fund 45-85% money is invested in fixed income instrument, 0-40% in money market instrument and 15-55% is invested in equity. 

Balanced Fund –  Balance Fund is for medium risk investor. This fund provides balance income and growth to the investor. In balance fund 30-70% money is invested in fixed income instrument, 0-40% in money market instrument and 30-70% is invested in equity. 

Growth Fund – Growth Fund is for high risk investor. This fund is intended to provide long term capital growth to the investor. In growth fund 20-60% money is invested in fixed income instrument, 0-40% in money market instrument and 40-80% is invested in equity.

Investor has option to select and switch between these funds throughout policy term.

LIC Nivesh Plus Benefits 

Maturity Benefit – On the maturity of plan, you will get unit fund value. The amount will be based on NAV on that date.

Death Benefit – On the death of policy holder during policy term, you will get sum assured as opted while purchasing the policy.

Nivesh Plus Charges 

You need to pay following charges when you purchase LIC Nivesh Plus policy.

Fund Management Charges – This charges are applicable for the management of fund. This charges are levied at the time of computation of NAV on daily basis.

FundCharge applicable
Bond Fund, Secured Fund, Balanced Fund, Growth Fund1.35% of unit fund per year
Discontinued  Policy Fund0.50% of unit fund per year

Morality Charges – You need to pay additional amount for the insurance cover that is known as morality charges. This amount is taken at the beginning of buying a policy. The morality charges depend upon sum assured and the unit fund value.

Premium Allocation Charges – Under this ULIP plan you need to pay premium allocation charges. The charges will be reduced from your premium amount and remaining amount is used for buying units. The allocation charges for online policy is 1.5% and for offline it is 3.3%.

Discontinuance Charges – You also need to pay discontinuance charges if you don’t want to continue this policy. This charges are applicable up to 5 years. From the fifth year onwards no discontinuance charges applicable.

LIC Nivesh Plus Plan – Review

Now important question is should you invest in LIC Nivesh Plus Plan or not?  After going through policy detail one can easily figure out following positive and negative points. 

LIC Nivesh Plus Plan – Positive & Negatives
(1)   Single Premium Policy(1) Overall charges applicable are very high
(2)   Four fund option for the selection(2) Risk is high as returns are market linked
(3)   Facility to switch between funds(3) Low sum assurance of 1.25 Times
(4)   Guaranteed addition of 3-7% at specific intervals(4) Maximum policy term for person with age above 30 years is 10 year only
(5)   Expected returns from this policy is low

From above comparison one can easily say that LIC Nivesh Plus is not a good option for the investment. History says that ULIP will offer only low returns to the investors. So, instead of selecting this policy you should invest your money in other instruments such as equity mutual funds, fixed deposit, ELSS etc.

Nivesh Plus is gimmick by LIC to attract salaried people during tax saving month. I would advice to stay away from this policy.

Shitanshu Kapadia
Shitanshu Kapadia
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.