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Unveiling LIC Index Plus: A Comprehensive Guide to Life Insurance Corporation’s Innovative Insurance-Savings Scheme

(LIC) has introduced the unit-linked, regular premium, individual life insurance scheme known as Index Plus, providing a combination of cover and savings over the policy duration, as per a statement by LIC.

The policy entails guaranteed additions in the form of a percentage of the annualized premium that will be added to the unit fund after specific policy years under an active policy, which will then be used to purchase units.

Additionally, there is an opportunity for partial withdrawal of units post the completion of a five-year lock-in period, subject to certain conditions.

Key Features of LIC Index Plus Policy

1) Minimum Entry Age: 90 days (completed).

2) Maximum Entry Age: 50 or 60 years (nearest birthday) based on the basic Sum Assured.

3) Basic Sum Assured: Ranges from 7 to 10 times the Annualized premium for entry ages between 90 days (completed) to 50 years (nearest birthday) and 7 times the Annualized premium for entry ages between 51 years to 60 years (nearest birthday).

4) Minimum Maturity Age: 18 years (completed).

5) Maximum Maturity Age: 75 or 85 years (nearest birthday) depending on the basic sum assured.

6) Minimum Policy Term: Either 10 or 15 years based on the Annualized premium, with a maximum term of 25 years. The premium paying term aligns with the policy term.

7) Minimum Premium: Ranges from ₹30,000/- (Yearly), ₹15,000/- (Half-yearly), ₹7,500/- (Quarterly), to ₹2,500/- Monthly (NACH) based on the Mode/Premium payment frequency.

8) Maximum Premium: No specific limit, subject to underwriting decision.

Policyholders have the option to select either the Flexi Growth Fund or Flexi Smart Growth Fund to invest their premiums initially and during switches. These funds primarily invest in chosen stocks from the NSE NIFTY 100 index or NSE NIFTY50 index, respectively.

9) Partial Withdrawals: Permissible under specified conditions.

  • Upon the survival of the Life Assured until the maturity date, an amount equivalent to the Unit fund Value as of the maturity date will be disbursed.
  • The payout in case of the Life Assured’s demise varies based on whether it occurs before or after the commencement of risk.
  • Refunds of mortality charges are subject to specific terms and conditions.
  • Policyholders have the choice to opt for LIC’s Linked Accidental Death benefit rider.
  • Partial withdrawal of units is feasible after the completion of the 5-year lock-in period, subject to conditions.

How to Purchase LIC Index Plus Policy

The policy can be acquired both offline through agents/intermediaries and online via the website