LIC Index Plus Plan 873
LIC of India launched a new ULIP Plan name is LIC’s Index Plus Plan 873 with effect from 6th February 2024. 'LIC’s Index Plus 873' is a Unit Linked, Regular Premium, Individual Life Insurance Plan which offers life insurance cover cum savings throughout the term of the policy.
LIC of India launched a new ULIP Plan name is LIC’s Index Plus Plan 873 with effect from 6th February 2024. 'LIC’s Index Plus 873' is a Unit Linked, Regular Premium, Individual Life Insurance Plan which offers life insurance cover cum savings throughout the term of the policy.
Guaranteed additions as a percentage of Annualized Premium shall be added to the unit fund on completion of specific duration of policy years under an in-force policy. You can invest in 2 different fund options as per this plan given below.
There is an option to choose any one of the two funds to invest premiums initially and at the time of switching, i.e. (1) Flexi Growth Fund and (2) Flexi Smart Growth Fund wherein investment will be primarily in selected stocks which are a part of NSE NIFTY 100 index or NSE NIFTY50 index respectively. |
LIC Index Plus Plan 873 – Key Features
- LIC Index Plus Plan 873 is regular premium policy with monthly, quarterly, half yearly and yearly saving option.
- The insurance coverage will be 7 times only if age is above 51 and 7 times and 10 times if age is below 51.
- You can select from 2 different fund options (1) Flexi Growth Fund and (2) Flexi Smart Growth Fund.
- Switching is allowed between 2 funds 4 times in a year.
- You can partial withdrawal money after 5th years onward.
- This plan provides life risk cover with investment.
- Guaranteed addition offered in addition to unit fund value.
- The facility of surrender is available after the lock-in period of 5 years.
- This plan also provide additional riders such as accidental rider.
LIC Index Plus Plan No 873 - Eligibility/Parameter
| 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 of annualized premium and 85 years - 7 times of 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 |
Benefits of LIC Index ULIP Plus 873
Benefits payable on death of the Life Assured before the stipulated Date of Maturity under this policy:
On death before the Date of Commencement of Risk: An amount equal to the Unit Fund Value shall be payable.
On death after the Date of Commencement of Risk: An amount equal to the highest of the following shall be payable.
- Basic Sum Assured (less partial withdrawals in the last two years); or
- Unit Fund Value; or
- 105% of the total premiums received (less partial withdrawals in the last two years)
Maturity Benefit
Benefits payable on maturity: On Life Assured surviving the stipulated Date of Maturity, an amount equal to the Unit Fund Value is payable.
On Life Assured surviving the term of the policy, an amount equal to the Unit Fund value will be payable.
Refund of Mortality Charge
On the life assured surviving the stipulated date of maturity, an amount equal to the total amount of mortality charges deducted in respect of life insurance cover shall be payable along with the maturity benefit.
Mortality charge refund will not be applicable for discontinued or paid up policies and while surrendering a policy.
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 Year | Guaranteed Additions (as percentage of annualized Premium) |
6 | For annualized premium less than 48,000 = 3% For annualized premium 48,000 and above = 5% |
10 | For annualized premium less than 48,000 = 6% For annualized premium 48,000 and above = 10% |
15 | For annualized premium less than 48,000 = 12% For annualized premium 48,000 and above = 20% |
20 | For annualized premium less than 48,000 = 15% For annualized premium 48,000 and above = 25% |
25 | For annualized premium less than 48,000 = 18% For annualized premium 48,000 and above = 30% |
Investment Fund Types
There are 2 funds available in LIC Index Plus Plan 873.
(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. |
LIC Index Plus ULIP Plan 873 with an Example
To Illustrate the benefits of Index Plus ULIP Plan 873, Let's take an example of a person who is purchasing Index Plus ULIP Plan 873 with following details.
Regular Premium
| Basic Premium | GST (@ 0%) | Total Premium |
1,00,000 | Nil | 1,00,000 |
| Age | 34 Years |
| Policy Term | 21 Years |
| Policy Purchase Year | 2024 |
Maturity Details
If policy holder survives the policy term ( i.e. 21 years ), Maturity will be as under.
| Maturity Year | Maturity Age | Maturity Amount(approx) |
| 2045 | 55 | 61,85,851 |
| Age | Premium | NAV | Normal Risk | Surrender Value |
| 34 | 100000 | 10 | 1000000 | 0 |
| 35 | 100000 | 11 | 1000000 | 0 |
| 36 | 100000 | 12.1 | 1000000 | 0 |
| 37 | 100000 | 13.31 | 1000000 | 0 |
| 38 | 100000 | 14.64 | 1000000 | 0 |
| 39 | 100000 | 16.1 | 1000000 | 721791 |
| 40 | 100000 | 17.71 | 1000000 | 895970 |
| 41 | 100000 | 19.48 | 1082517 | 1082517 |
| 42 | 100000 | 21.43 | 1287880 | 1287880 |
| 43 | 100000 | 23.57 | 1513487 | 1513487 |
| Age | Premium | NAV | Normal Risk | Surrender Value |
| 44 | 100000 | 25.93 | 1772029 | 1772029 |
| 45 | 100000 | 28.52 | 2046027 | 2046027 |
| 46 | 100000 | 31.37 | 2347486 | 2347486 |
| 47 | 100000 | 34.51 | 2679459 | 2679459 |
| 48 | 100000 | 37.96 | 3044327 | 3044327 |
| 49 | 100000 | 41.76 | 3461081 | 3461081 |
| 50 | 100000 | 45.94 | 3904520 | 3904520 |
| 51 | 100000 | 50.53 | 4391632 | 4391632 |
| 52 | 100000 | 55.58 | 4927535 | 4927535 |
| Age | Premium | NAV | Normal Risk | Surrender Value |
| 53 | 100000 | 61.14 | 5517466 | 5517466 |
| 54 | 100000 | 67.25 | 6185851 | 6185851 |
Maturity (Fund Value)= 61,85,851
Premium Allocation Charge
Premium Allocation Charges (% of premium)
| Year | Offline Sale | Online sale |
| First Year | 8.00% | 3.00% |
| 2nd to 5th Year | 5.50% | 2.00% |
| Thereafter | 4.00% | 1.50% |
Fund Management Charges
1.35% p.a. of Unit Fund for all the four Funds available under this Plan. ie (1) Flexi Growth Fund and (2) Flexi Smart Growth Fund |
| 0.50% p.a. of Unit Fund for " Discontinued Policy Fund |
Discontinuance Charges
This charge will be levied by canceling the appropriate number of units out of unit fund value as on the date of discontinuance of the policy.
Year of discontinuation | Annualized premium(AP) up to Rs.50,000 | Annualized premium (AP) above Rs.50,000 |
1 | Lower of 20% of AP or PV subject to a maximum of Rs.3,000 | Lower of 6% of AP or PV subject to a maximum of Rs.6,000 |
2 | Lower of 15% of AP or PV subject to a maximum of Rs.2,000 | Lower of 4% of AP or PV subject to a maximum of Rs.5,000 |
3 | Lower of 10% of AP or PV subject to a maximum of Rs.1,500 | Lower of 3% of AP or PV subject to a maximum of Rs.4,000 |
4 | Lower of 5% of AP or PV subject to a maximum of Rs.1,000 | Lower of 2% of AP or PV subject to a maximum of Rs.2,000 |
5 and onwards | Nil | Nil |
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