LIC Index Plus Policy: Life Insurance Corporation introduces a new insurance-cum-savings plan. Ten key things to know

Life Insurance Corporation of India (LIC) has announced the launch of unit-linked, regular premium, individual life insurance plan Index Plus. The plan offers life insurance cover-cum-savings throughout the term of the policy, LIC said in a statement.


"Guaranteed additions as a percentage of annualised premium shall be added to the unit fund on completion of specific duration of policy years under an in-force policy and shall be utilised to purchase units," it said.


There is an option to partially withdraw the units at any time after the five-year lock-in period subject to conditions, it said.


LIC Index Plus policy: Key features


1) Minimum age at entry: 90 days (completed). 


2) Maximum age at entry: 50 or 60 years (nearer birthday) depending on the basic Sum Assured.


3) Basic sum assured: 7 to 10 times of Annualized premium for age at entry 90 days (completed) to 50 years (nearer birthday) and 7 times of Annualized premium for age at entry 51 years to 60 years (nearer birthday)


4) Minimum age at maturity: 18 years (completed)


5) Maximum age at maturity: 75 or 85 years (nearer birthday) depending on the basic sum assured.


6) Minimum policy term: 10 or 15 years depending on Annualized premium and Maximum Term is 25 years. The premium paying term is the same as the policy term.


7) Minimum premium: Range from 30000/-(Yearly), 15000/-(Half- yearly), 7500/-( Quarterly), and 2500/- Monthly (NACH) depending upon the Mode/Premium payment frequency. 


8) Maximum premium: No limit subject to underwriting decision.

There is an option to choose any one of the two funds to invest premiums initially and at the time of switching, i.e. Flexi Growth Fund and Flexi Smart Growth Fund wherein investment will be primarily in selected stocks that are a part of NSE NIFTY 100 index or NSE NIFTY50 index respectively.


9) Partial withdrawals: Available subject to conditions.

-On Life Assured surviving the Date of maturity, an amount equal to Unit fund Value as of the date of maturity shall be payable.

-The amount payable on the death of Life assured differs depending upon whether the death of the life assured is before the date of commencement of risk or after the date of commencement of risk.

-Refunds of mortality charges are subject to terms and conditions.

-There is an option of availing LIC’s Linked Accidental Death benefit rider.

-There is an option to partially withdraw the units at any time after the 5 years lock-in period subject to conditions.


10) LIC Index Plus policy: How to purchase?

The plan can be purchased Offline through agents / other intermediaries.