LIC of India
LIC's Index Plus Policy

LIC Index Plus

Life Insurance Corporation of India (LIC) has recently introduced a new life insurance plan called Index Plus. It’s a life insurance product with regular premium payments, providing both life insurance coverage and savings throughout the policy period.

It falls under the category of Unit Linked Insurance Plans (ULIPs) and requires regular premium payments. This policy does not participate in profit sharing (a non-participating plan), meaning policyholders do not receive a share in any surplus or profits during the policy term.

Eligibility Conditions Of LIC Index Plus Plan

Minimum Entry Age90 Days (Completed)
Basic Sum Assured (BSA)

7 X Annualized Premium


10 X Annualized Premium

Maximum Entry Age
  • For BSA 7 X Annualized Premium: 60 Years (Nearer Birthday)
  • For BSA 10 X Annualized Premium: 50 Years (Nearer Birthday)
Minimum Policy Term
  • For Annualized Premium Less Than Rs. 48,000: 15 Years
  • For Annualized Premium Equal To Rs. 48,000 & Above: 10 Years
Maximum Policy Term25 Years
Minimum Premium

Yearly: Rs. 30,000

Half-Yearly: Rs. 15,000

Quarterly: Rs. 7,500

Monthly (NACH): 2,500

Maximum PremiumNo Limit
Premium Paying TermSame As Policy Term
Minimum Maturity Age18 Years (Completed)
Maximum Maturity Age

For 7 X Annualized Premium: 85 Years (Nearer Birthday)

For 10 X Annualized Premium: 75 Years (Nearer Birthday)

Prominent Features & Benefits Of LIC Index Plus Plan

Here are some of the key features and benefits payable under the policy:

Maturity Benefits:

In case the policyholders survive the maturity date and they have paid all the required premiums on time, they will be eligible to get an amount equal to ‘Unit Fund Value’. This amount can serve as a financial safety net and can be used for various financial purposes in life, be it funding a child’s education or collecting money for retirement.

Death Benefits:

In case the policyholders die before the stipulated date of maturity, they will be entitled to receive death benefits. They are as follows:

  • If death occurs before the date of commencement of risk: Death benefit will be equal to the ‘Unit Fund Value’.
  • If death occurs after the date of commencement of risk: Death benefit will be equal to the highest of the following:
    • Basic sum assured
    • 105% of the total premiums received
    • Unit fund value

This lump sum payment can help cover immediate expenses and help the family members in covering their day-to-day expenses.

Refund Of Mortality Charges:

If policyholders live past the maturity date of the LIC Index Plus policy, and have paid all the required premiums, they will receive an amount equal to mortality charges deducted for the life insurance coverage. This payout will exclude any extra charges from underwriting decisions or taxes on these charges. However, if the policy is discontinued or surrendered, there won’t be a refund of the mortality charges.

Guaranteed Additions:

Guaranteed additions are extra amounts of money that LIC promises to add to the policyholders’ policy at specific intervals. Under the Index Plus policy, LIC gives these additions as a percentage of the premiums paid by the policyholders. These additions are a good way to receive additional benefits and increase the value of policy over time. To know about how much percentage of guaranteed additions are offered by the plan, kindly refer to its sales brochure.

2 Fund Options:

The plan also offers two fund options of very high risk. Their details are as follows:

  • Flexi Smart Growth Fund
  • SFIN No.: ULIF00610/11/23LICULIPFSG512
  • Investment in listed equity shares: 40% to 100%
  • Short-term investments such as market money instruments: 0% to 40%
  • Investment in government/Government-guaranteed securities/Corporate debt: 0% to 20%
  • Flexi Growth Fund
  • SFIN No.: ULIF00510/11/23LICULIPFLX512
  • Investment in listed equity shares: 40% to 100%
  • Short-term investments such as market money instruments: 0% to 40%
  • Investment in government/Government-guaranteed securities/Corporate debt: 0% to 20%

Rider Benefits:

Policyholders can add optional rider of ‘Accidental Death Benefit Rider’ on any policy anniversary after it’s been active for 5 years but before they turn 65. This extra coverage lasts until the policy matures or until policyholders turn 70, whichever comes first, as long as their policy is still active when an accident happens. This rider offers policyholders a one-time payment known as ‘Accident Benefit Sum Assured’ in case there is an accidental death.

Option Of Partial Withdrawals:

After 5 years from the start of the policy, policyholders are allowed to withdraw some of their units. Here are the rules:

  • Minors can only withdraw once they turn 18.
  • One can choose to take out a set amount or a specific number of units.
  • The maximum one can withdraw each year is a certain percentage of their fund, as mentioned in the policy brochure, ‘Section 4, Part-II’.

Charges Applicable Under LIC Index Plus Plan

The charges applicable under the policy are as follows:

Premium Allocation Charge:

This is part of the premium that covers charges taken out from the total received premium. The rest, which is known as the allocation rate, is what’s used to purchase units in the chosen fund within the policy.

Mortality Charge:

It is the cost of life insurance and it changes with age. This charge is taken at the beginning of each policy month by using a certain number of units from the Unit Fund Value. The monthly charge is one-twelfth of the annual mortality charges and is determined by the sum amount at risk.

Accidental Benefit Charges:

These represent the cost of LIC’s Linked Accidental Death Benefit Rider if chosen. This charge is deducted at the start of each policy month by utilizing a specific number of units from the Unit Fund Value, as long as the policy remains active (with all due premiums paid).

Fund Management Charge:

It is a deduction made as a percentage of the asset value by adjusting the Net Asset Value. It is incorporated during the daily calculation of the Net Asset Value, and the declared Net Asset Value already accounts for this charge. The following rates apply:

  • 1.35% per annum of the Unit Fund for both the Flexi Growth Fund and the Flexi Smart Growth Fund.
  • 0.50% per annum of the Unit Fund for the “Discontinued Policy Fund”.

Policy Administration Charge:

Charge is imposed at the beginning of each policy month starting from the 6th policy year until the end of the policy term. It is deducted from the Unit Fund Value, with a maximum limit of Rs. 500 per month (Rs. 6,000 per annum). The equivalent units are canceled accordingly.

Switching Charges:

A switching charge is applied when switching funds within the product. The policy allows 4 switches within a policy year. However, any subsequent switches will incur a charge of Rs. 100 per switch.

Partial Withdrawal Charge:

Upon making a partial withdrawal, a charge is levied on the Unit Fund Value. An amount of Rs. 100 is deducted by canceling the appropriate units on the date of the partial withdrawal.

Discontinuance Charge:

In the event of policy discontinuation, the discontinuance charge is imposed by canceling units from the Unit Fund Value. The applicable discontinuance charges are mentioned in the policy brochure.

Tax Charges:

If taxes are applicable, they will be added to the charges as per the current tax laws. The rates are determined based on the government’s notifications without specific reference to the policyholder.

Right To Revise Charges:

The company can change any of the mentioned charges, except for the ‘Mortality Charge’ and ‘Accident Benefit Charge’. Any changes can be made in the future with the approval of IRDAI. Policyholders will be informed three months in advance through the company’s website.

Miscellaneous Charges:

A flat charge of Rs. 100 is deducted by canceling units for any alterations made during the contract, such as changes in premiums mode or the addition of the Accident Benefit Rider after the policy issuance.

Sample Benefit Illustration Of LIC Index Plus Plan

Let’s take the example of Mr. Suresh Kumar, a 30-year-old healthy male, who has purchased the LIC Index Plus policy. Other details of the policy are as follows:

  • Policy Term: 25 Years
  • Basic Sum Assured: Rs. 10,00,000
  • Type Of Fund Chosen: Flexi Growth Fund
  • Premium Payment Mode: Half-Yearly
  • Premium: Rs. 50,000

The plan will work for Mr. Kumar and offer benefits in the following manner:

End Of Policy YearCumulative Premiums PaidGuaranteed AdditionsDeath BenefitsMaturity Benefits
   @ 4% Per Annum@ 8% Per Annum@ 4% Per Annum@ 8% Per Annum
6Rs. 6,00,000Rs. 5,000Rs. 10,00,000Rs. 10,00,000Rs. 5,99,947Rs. 6,80,716
10Rs. 10,00,000Rs. 10,000Rs. 10,60,743Rs. 13,07,764Rs. 10,60,743Rs. 13,07,764
15Rs. 15,00,000Rs. 20,000Rs. 17,07,366Rs. 23,46,412Rs. 17,07,366Rs. 23,46,412
20Rs. 20,00,000Rs. 25,000Rs. 24,35,514Rs. 37,57,282Rs. 24,35,514Rs. 37,57,282
25Rs. 25,00,000Rs. 30,000Rs. 32,61,345Rs. 56,78,503Rs. 32,61,345Rs. 56,78,503

Purchasing Process Of LIC Index Plus Plan

One can purchase the Index Plus plan from LIC through the following ways:

Online Buying Process:

  1. Go to the official LIC website.
  1. Click on the “Buy Online” tab in the “How may we help you today?” section at the top left of the page.
  1. Select “Market Linked Plans”, then choose “LIC’s Index Plus” and click on “Know More”.
  1. You will be redirected to an external buying link. Click on “CLICK TO BUY ONLINE”.
  1. Read the instructions about the required documents on your screen and click “Proceed”.
  1. Enter your contact details like name, phone number, email address, and more. Click “Proceed”.
  1. Your access ID will be generated. Enter the OTP sent to your mobile and email, then click “Proceed”.
  1. Verify your personal information and provide details such as annuity type, payment mode, deferment period, etc. Click “Calculate Premium” after entering all required details.
  1. Once the quote is generated, complete the payment, and your policy details will be sent to your registered email address or phone number.

Offline Buying Process:

If you prefer buying the plan in person, visit a nearby LIC branch office. Approach the executive’s desk and provide all necessary information for purchasing the policy. Alternatively, you can also buy the policy through trusted third-party agents or intermediaries, ensuring they are reputable and trustworthy.

Frequently Asked Questions

Yes. You can cancel the policy within a period of 30 days from the date of receipt of the policy. This period is known as the free look period.

Yes. They can do so. However, this option can be chosen by the policyholder during the minority period of the life assured or by the life assured of 18 years and above age.

You may choose to pay a premium for your Index Plus policy through monthly (through NACH only), yearly, half-yearly, or quarterly modes.

Yes. The grace period for yearly or half-yearly mode of premium payment is 30 days and for monthly mode, it is 15 days from the date of 1st unpaid premiums.

No. There is no loan facility available under the plan.

The policy has a suicide exclusion. It states that if the policyholder dies by suicide within 12 months after the policy starts, the death benefit payable to the beneficiaries may be restricted.

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