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 or call Ajay Kumar Poddar at 9415313434.