HomePersonal FinanceLife InsuranceLIC SIIP Plan No 852- Systematic Investment Insurance Plan

LIC SIIP Plan No 852- Systematic Investment Insurance Plan

LIC SIIP Plan No 852 is a new ULIP plan launched by LIC on 2nd March 2020. This plan is unique in terms of many aspects. SIIP is unit linked, non-participating, individual life insurance plan. SIIP is the second ULIP policy launched by LIC in the year 2020. Along with SIIP LIC has also launched single premium ULIP plan called as LIC Nivesh Plus Plan No 849. This plan is available in online as well as offline mode. You can invest in four different fund options under this policy.

Let’s take a look at LIC SIIP plan key features, eligibility, benefits in detail and try to figure out is it worth investing or not.

LIC SIIP Plan No 852 – Key Features & Eligibility 

  • LIC SIIP is regular premium policy with monthly saving option of Rs.4000 or yearly saving option of Rs.40000.
  • The insurance coverage will be 7 times if age is above 55 and 10 times for others.
  • Premium paid will be converted to unit as per the unit price on the date payment.
  • You can select from four different fund options bond, secured, balanced and grwoth. This is similar to LIC Nivesh Plus policy.
  • Switching is allowed between all four funds four times in a year. This is to ensure higher returns from the investment.
  • You can withdraw money from this plan after 5th The withdrawal will be in the form of fixed amount or fixed number of units. Partial withdrawal is not allowed to minor.
  • This plan provides life risk cover option.
  • Guaranteed addition offered in addition to unit fund value. The percentage of guaranteed addition will be a percentage of the fixed annualized premium.
  • You cannot get loan facility under this plan.
  • The facility of surrender is available after the lock-in period of 5 years. The fund value available as on date is paid in case of surrender.
  • This plan also provide additional riders such as accidental riders.



Minimum Entry Age – 90 days

Maximum Entry Age – 65 days

Minimum and Maximum Maturity Age – 18 years to 85 years

Policy tenure – 10 years to 25 years

Lock-in period – 5 years

Sum Assured – 10 times of annualized premium for age below 55 years and 7 times of annualized premium age above 55 years.

LIC SIIP Investment Fund Options

Bond Fund – Bond fund is relatively safe and suitable for low risk investors. This fund does not invest any money in the equity shares.

Secured Fund – Secured fund is intended to offer steady income to the investor with the combination of equity and fixed income securities.

Balanced Fund – Balance Fund provides balance and growth to the investors. This fund is for medium risk investors. This fund invests in equity and fixed income securities.

Growth Fund –  Growth fund is for aggressive investor. This fund is intended to provide capital growth to the investor.

LIC SIIP Benefits

Maturity Benefit 

If insured survives till the maturity date, the plan will offer an amount to the policy holder which is equal to fund value. 

Death Benefit 

On the death of policy holder before commencement of risk during the policy tenure, the plan will pay an amount equal to fund value to the nominee. On the death after the date of commencement risk, higher of sum assured or unit fund value is paid to the nominee. 

LIC SIIP Plan Review – Should You Invest?

In order to conclude that SIIP is worth for investment or not let’s take a look at positive and negative of this plan.

LIC SIIP Plan  – Positive & Negatives
(1)   Four fund option for the selection(1) Overall charges applicable are very high
(2)   Facility to switch between funds(2) Risk is high as returns are market linked
(3)  Mortality charges will be refunded by LIC(3) Low sum assurance for age above 55 years
(4)   Guaranteed addition of 5-25% at specific intervals(4) Premium allocation charges and other charges are very high.
(5)   Expected returns from this policy is low

SIIP is policy is projected as systematic investment plan and mainly launched to attract salaried people who are looking for last minute tax saving option. The expected return from this policy will be low as charges are very high. I would not recommend investing in LIC SIIP Plan. Instead of SIIP, you can invest in other tax saving instruments such as ELSS, PPF, Tax saving FD etc.

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. 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 , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.