LIC Nivesh Plus (Plan No. 849) and LIC Index Plus (Plan No. 873) are Unit Linked Insurance Plans (ULIPs) combining insurance protection with market-linked investment. Here’s a comprehensive comparison to help you decide the right plan for your goals.
What is a ULIP?
A ULIP (Unit Linked Insurance Plan) is a hybrid financial product that offers both life insurance and market-linked investment returns. Part of your premium is invested in equity or debt funds, and the rest goes toward life cover and policy charges.
ULIPs are ideal for investors who want:
- Market participation + insurance in a single plan
- Flexible fund choices (equity, debt, balanced)
- Tax benefits under 80C and 10(10D)
LIC Nivesh Plus (Table No. 849) – Overview
This is a single premium ULIP offering market-linked growth with insurance cover. It suits those who want to invest a lump sum without future premium commitments.
| Feature | Details |
|---|---|
| Plan Type | ULIP (Single Premium) |
| Minimum Investment | ₹1,00,000 |
| Entry Age | 90 days to 70 years |
| Policy Term | 10 to 25 years |
| Fund Options | Flexi Growth or Flexi Debt |
| Lock-in Period | 5 years |
| Life Cover | 1.25x or 10x of premium |
| Tax Benefit | 80C and 10(10D) |
LIC Index Plus (Table No. 873) – Overview
This is a regular premium ULIP that invests directly in the Nifty 100 Index. It’s ideal for salaried investors seeking long-term wealth creation through the Indian stock market index.
| Feature | Details |
|---|---|
| Plan Type | ULIP (Regular Premium) |
| Minimum Annual Premium | ₹30,000 |
| Entry Age | 90 days to 50 years |
| Policy Term | 10 to 25 years |
| Fund Option | Nifty 100 Index Fund |
| Lock-in Period | 5 years |
| Life Cover | Sum Assured + Fund Value |
| Tax Benefit | 80C and 10(10D) |
LIC Nivesh Plus vs LIC Index Plus – Comparison Table
| Feature | Nivesh Plus (849) | Index Plus (873) |
|---|---|---|
| Premium Type | Single Premium | Yearly or Half-Yearly |
| Investment Style | Equity or Debt Fund | Index Fund (Nifty 100) |
| Fund Switching | Allowed | Not Allowed |
| Loyalty Additions | No | Yes (from 6th year) |
| Maturity Benefit | Fund Value | Fund Value |
| Death Benefit | Higher of Fund or SA | SA + Fund Value |
| Partial Withdrawal | After 5 years | After 5 years |
Are ULIPs better than Traditional Insurance Plans?
- Traditional plans (like Endowment, Jeevan Anand) offer fixed, low-risk returns (4%–6%).
- ULIPs offer potentially higher returns through equity/debt investment, but with market risk.
- ULIPs are better if you want wealth creation + insurance.
- Traditional plans suit those who want capital safety and guaranteed returns.
Are ULIPs better than Mutual Funds?
Depends on your goals:
- Mutual Funds give better returns and more liquidity but offer no life cover or tax-free maturity.
- ULIPs are tax-efficient (10(10D) benefit) and provide life cover.
- ULIPs are better if you want insurance + investment in one, especially over 10+ years.
Past Performance (as per LIC NAV data)
Nivesh Plus – Flexi Growth Fund
- 5-Year CAGR (as of 2024): ~9.2%
- 10-Year CAGR (where available): ~10.1%
Index Plus – Nifty 100 Fund
- 5-Year CAGR (based on Nifty 100): ~11.8%
- 10-Year CAGR: ~12.5%
Past performance is not guaranteed. Returns depend on market performance and fund NAV.
Charges Comparison
| Charge Type | Nivesh Plus | Index Plus |
|---|---|---|
| Premium Allocation | ~3.3% (one-time) | 7.5% in Year 1, reduces later |
| Fund Management | 1.35% p.a. | 1.35% p.a. |
| Policy Admin | Nil | ₹60/month |
| Mortality Charge | As per age | As per age |
Who Should Choose What?
Choose Nivesh Plus if:
- You prefer one-time investment
- You want switching flexibility
- You don’t want long-term payment commitment
Choose Index Plus if:
- You want long-term index-based growth
- You can invest yearly/half-yearly
- You want loyalty additions and dual benefit
“Index Plus is perfect for young professionals who want disciplined investment with market-linked growth.”
— Neetu Jain, LIC Advisor, Gurgaon
Frequently Asked Questions (FAQs)
1. Are returns guaranteed?
No. Both plans are market-linked; returns vary with fund performance.
2. Is fund switching allowed?
Only Nivesh Plus allows switching between debt and equity.
3. Are maturity proceeds tax-free?
Yes, if premium-to-sum assured conditions under Section 10(10D) are met.
4. Is Index Plus good for children’s education?
Yes, due to long-term index growth and loyalty additions.
Conclusion
LIC Index Plus (873) is better for long-term growth and goal planning. If you prefer a one-time, no-commitment investment, LIC Nivesh Plus (849) is your best bet.
Need personal advice? Let a licensed LIC advisor help you choose the right plan.
👉 Visit www.insuringgurgaon.com
