LIC Index Plus Plan 2025 – Features, Benefits & FAQs for Easy Understanding
In today’s world, everyone wants their money to grow while staying secure. LIC, one of India’s most trusted life insurance companies, has introduced LIC Index Plus, a unique plan that combines life insurance with market-linked investment. This plan is ideal for those who want both protection and growth in one policy.
Discover LIC Index Plus 2025 – a ULIP plan combining life insurance with market-linked growth. Benefits, features, FAQs explained simply.
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LIC Index Plus Plan 2025 – Features, Benefits |
What is LIC Index Plus?
LIC Index Plus is a Unit-Linked Insurance Plan (ULIP). This means it provides you with life insurance coverage and invests your money in market-linked funds. Unlike traditional insurance, this plan’s returns depend on the performance of the stock market, specifically the NIFTY 50 and NIFTY 100 indices.
It is designed for long-term investors who are willing to stay invested over 10–25 years and can handle market fluctuations. The plan also offers some guaranteed additions at specific milestones, giving your investment a boost along the way.
Key Features
| Feature | Details |
|---|---|
| Entry Age | Minimum 90 days, Maximum 50–60 years depending on Sum Assured |
| Maturity Age | Minimum 18 years, Maximum 75–85 years |
| Policy Term | 10–25 years |
| Premium Payment | Monthly, Quarterly, Half-Yearly, Yearly |
| Minimum Premium | ₹2,500/month or ₹30,000/year (approx.) |
| Life Cover | 7× or 10× annualised premium depending on age |
| Investment Options | Flexi Smart Growth Fund (NIFTY 50), Flexi Growth Fund (NIFTY 100) |
| Switching | Allowed between funds, up to 4 times per year |
| Partial Withdrawal | Allowed after 5-year lock-in |
| Guaranteed Additions | Added at policy milestones (6th, 10th, 15th, 20th, 25th year) |
Benefits of LIC Index Plus
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Life Insurance + Investment in One Plan
You get the safety of life insurance along with the potential for market-linked growth. -
Market-Linked Growth
The funds track major Indian stock indices, giving you the chance to earn higher returns than traditional insurance. -
Flexibility
You can choose premium payment frequency, switch between funds, and make partial withdrawals after the lock-in period. -
Guaranteed Additions
LIC adds extra units to your investment at specific milestones, enhancing your fund value over time.
Things to Keep in Mind
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Returns are Market-Linked: Your investment’s growth depends on stock market performance. There are no guaranteed returns on the fund.
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Charges Apply: ULIPs have various charges like mortality charges, fund management fees, and surrender charges that can reduce your returns.
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Long-Term Investment: This plan is best suited for those with a long-term horizon. Early withdrawal may reduce benefits.
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Risk Factor: While potential returns are higher, the risk of market fluctuations is also present.
Who Should Consider LIC Index Plus?
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Individuals looking for long-term wealth creation combined with life cover.
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Investors who are comfortable with equity market risk and want higher potential returns.
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People who prefer one plan for insurance and investment, instead of buying separate policies and mutual funds.
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Those who want flexibility in payment modes, fund switching, and partial withdrawals after five years.
Conclusion
LIC Index Plus is a modern ULIP that blends insurance protection with market-linked investment. It is suitable for disciplined, long-term investors who can handle market ups and downs. If you are looking for a combination of financial security and growth potential, this plan is worth considering.
Remember, like all investments, it is important to understand the charges, lock-in period, and your own financial goals before investing.
FAQ – LIC Index Plus Plan
1. What is LIC Index Plus?
LIC Index Plus is a Unit-Linked Insurance Plan (ULIP) that provides life insurance cover along with market-linked investment. Your returns depend on the performance of selected equity indices (NIFTY 50 / NIFTY 100).
2. Who is eligible for this plan?
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Minimum Age: 90 days
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Maximum Age: 50–60 years depending on Sum Assured
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Maturity Age: 18–85 years depending on policy term
3. What is the policy term?
You can choose a policy term between 10 to 25 years, depending on your premium and age at entry.
4. How much premium do I need to pay?
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Monthly: ₹2,500 minimum
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Quarterly: ₹7,500 minimum
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Half-Yearly: ₹15,000 minimum
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Yearly: ₹30,000 minimum
5. What is the life cover under this plan?
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For entry age ≤ 50 years: 7× or 10× the annualised premium
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For entry age 51–60 years: 7× annualised premium
6. What investment options are available?
Two funds are available:
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Flexi Smart Growth Fund: Tracks NIFTY 50
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Flexi Growth Fund: Tracks NIFTY 100
7. Can I switch between funds?
Yes, you can switch between the two funds, typically up to 4 times a year.
8. Are there any guaranteed returns?
The returns are market-linked, but LIC adds Guaranteed Additions at policy milestones (e.g., 6th, 10th, 15th, 20th, 25th year) to enhance your fund value.
9. Can I withdraw money before maturity?
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Partial withdrawals are allowed after completing 5 years.
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Surrender is possible after the lock-in period, but early withdrawal may reduce benefits.
10. What are the risks of this plan?
Since it is a ULIP, the investment is linked to the stock market. Market fluctuations can impact your fund value. Charges like mortality, fund management, and surrender fees may also reduce returns.
11. Who should consider this plan?
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Long-term investors looking for insurance + investment in one plan
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Those comfortable with market-linked returns
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People who want flexibility in payment modes and fund switching
12. How does LIC Index Plus compare to traditional insurance?
Unlike traditional insurance, LIC Index Plus offers potentially higher returns through market investment, but with higher risk. Traditional policies provide guaranteed returns but lower growth potential.
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