LIC Index Plus Plan 873: India's First Index-Linked ULIP Reviewed

LIC Index Plus Plan 873 is a landmark product - it is India's first index-linked ULIP from a public sector insurer. Instead of actively managed funds, your money tracks the performance of Nifty 50 or Nifty 100 indices.

## Why an Index ULIP?

The core argument for index investing is simple: most actively managed funds fail to beat their benchmark index consistently over 10+ years. By tracking an index, you eliminate fund manager risk and reduce costs.

LIC Index Plus brings this philosophy to the ULIP space - you get life insurance cover alongside passive index-linked investment.

## Two Fund Options

**Fund 1 - Nifty 50 Index Fund:** Mirrors the 50 largest companies by market cap on NSE (Reliance, TCS, HDFC Bank, Infosys, etc.)

**Fund 2 - Nifty 100 Index Fund:** Mirrors the top 100 companies - slightly more diversified than Nifty 50

You can allocate between both and switch freely.

## Key Features

- **Premium Payment:** Regular pay (annual, half-yearly, quarterly, or monthly) - **Minimum Premium:** Rs 30,000/year - **Entry Age:** 0 to 50 years - **Policy Term:** 10 to 25 years - **Premium Payment Term:** Minimum 5 years (can be less than policy term) - **Partial Withdrawal:** After 5-year lock-in (no charges) - **Accidental Death Benefit Rider:** Available as add-on - **Settlement Option:** At maturity, receive in installments over 5 years instead of lump sum

## Index Plus vs Nivesh Plus

| Feature | Index Plus 873 | Nivesh Plus 849 | |---|---|---| | Premium Type | Regular | Single | | Fund Type | Index (passive) | Actively managed | | Min Premium | Rs 30,000/year | Rs 1 lakh (one-time) | | Fund Management Charge | 0.5% (lower) | 0.8-1.35% |

The lower fund management charge in Index Plus is a significant advantage over the long term.

## Who Should Choose Index Plus?

- Long-term investors (15-25 year horizon) who believe in India's equity growth story - People who distrust active fund manager decisions - Those wanting ULIP flexibility (partial withdrawals, fund switching) with index returns - Young earners (25-40 years) building a retirement corpus with insurance cover

Track your Index Plus NAV using our [NAV tracker](/nav-tracker) or call Ajay Kumar Poddar at 9415313434.