LIC Index Plus Plan 873 - Detailed Overview
Key Point: LIC Index Plus Plan 873 is a unit-linked, non-participating individual life insurance plan that offers life cover along with investment opportunities linked to stock market indices.
Plan Features
| Feature | Details |
|---|---|
| Plan Type | Unit Linked Insurance Plan (ULIP) |
| Policy Term | 10-25 years |
| Premium Payment Term | Equal to policy term or limited payment options |
| Minimum Age at Entry | 18 years |
| Maximum Age at Entry | 65 years (varies by term) |
| Minimum Sum Assured | 10 times annual premium (for age < 45) or 7 times (for age ≥ 45) |
| Investment Options | Index Linked Fund (Nifty 50 or Sensex), Bond Fund, or combination |
| Partial Withdrawals | Allowed after 5 years subject to conditions |
Benefits
Death Benefit
Higher of:
- Sum Assured, or
- Fund Value
Maturity Benefit
Fund Value at maturity date
Indexation Benefit
Potential to earn returns linked to stock market indices (Nifty 50 or Sensex) with downside protection
Charges
| Charge Type | Details |
|---|---|
| Premium Allocation Charge | Up to 5% of premium (varies by premium amount) |
| Policy Administration Charge | ₹60 per month (increasing by 3% annually) |
| Fund Management Charge | Up to 1.35% of fund value per annum |
| Mortality Charge | Depends on age and sum assured |
| Discontinuance Charge | Applicable if policy surrendered within 3 years |
Example Illustration
| Parameter | Value |
|---|---|
| Policyholder Age | 35 years |
| Policy Term | 15 years |
| Premium Payment Term | 15 years |
| Annual Premium | ₹1,00,000 |
| Sum Assured | ₹10,00,000 (10 × annual premium) |
| Investment Option | 70% Index Fund, 30% Bond Fund |
Projected Value: Assuming 10% index growth and 7% bond fund growth, the projected fund value after 15 years would be approximately ₹30-35 lakhs (varies based on actual market performance).
Tax Benefits
- Premiums eligible for deduction under Section 80C
- Maturity proceeds tax-free under Section 10(10D) (subject to conditions)
Suitability
This plan is suitable for:
- Investors seeking market-linked returns with life insurance cover
- Those with moderate risk appetite
- Long-term investors (10+ years horizon)
- Individuals looking for index-based investment options
Note: This is a simplified overview. Policy terms and conditions apply. Please refer to the official LIC brochure or consult an LIC agent for complete details.
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