LIC Index Plus Plan Details

What is LIC Index Plus?

LIC Index Plus is a non-participating, unit-linked insurance plan (ULIP). This means that part of your premium goes towards life insurance coverage, while the rest is invested in stock market indices. The plan offers the option to enhance coverage with LIC's Linked Accident Benefit Rider. 

The fund options available under the plan are:

• Flexi Growth Fund

• Flexi Smart Growth Fund

Key Features of LIC Index Plus

• Life Insurance Coverage: The plan offers a death benefit to ensure financial security for your family in case of your untimely demise. The nominee will receive the higher sum assured or the fund value.

• Investment in Equity Markets: The returns are linked to the performance of selected stock market indices, which can provide better growth compared to traditional savings plans.

• Flexible Premium Payment Options: You can pay premiums regularly, for a limited time, or make a one-time payment.

LIC Index Plus Plan Details

• Free Look Period:

  The LIC Index Plus plan offers a 15-day free-look period (30 days if purchased online). During this period, you can return the policy and receive a refund of the premium paid minus any charges.

• Grace Period:

  The grace period is the time allowed to pay the premium after the due date without losing the policy benefits. For LIC Index Plus, the grace period is usually 30 days for annual, semi-annual, or quarterly premium payments. The policy remains active during this time, and you can pay without penalties.

• Partial Withdrawals:

  After the mandatory five-year lock-in period, you can withdraw your fund partially, which provides financial flexibility.

• Switching:

  You can change the investment type of your policy during its duration. When you switch, all your money in the current investment will move to the new one. You get four free switches each policy year, but after that, there's a charge of ₹100 per switch.

• Charges under the Plan:

  • Mortality Charge: Covers the cost of life insurance.

  • Premium Allocation Charge: Deducted from the premium.

  • Fund Management Charge: Percentage of the fund value.

  • Policy Administration Charge: Monthly charge from the 6th policy year.

  • Switching Charge: Applied when changing funds.

  • Discontinuance Charge: Applied if the policy is discontinued.

  • Accident Benefit Charges: This applies if the rider is chosen.

  • Partial Withdrawal Charge: Levied on partial withdrawals.

  • Miscellaneous Charge: Applied for alterations during the contract.

  • Tax Charge: Levied on applicable charges.

• Revival Period:

  If you fail to pay the premium and the policy lapses, you have a revival period during which you can reactivate your policy. The revival period for LIC Index Plus is generally 2 years from the date of the first unpaid premium. You need to pay all due premiums and applicable interest to revive the policy.

Benefits of LIC Index Plus

• Potential for High Returns: Since the plan invests in equity markets, it may offer higher returns than traditional insurance products.

• Insurance and Investment: It provides the dual benefit of life insurance and wealth creation, making it a comprehensive financial product.

• Tax Benefits: Premiums paid may qualify for tax deductions under Section 80C of the Income Tax Act, and the maturity amount is usually tax-free under Section 10(10D).

• Customization: The policy can suit your financial goals, risk appetite, and investment preferences.

How to Buy LIC Index Plus from Policybazaar?

You can now buy LIC Plans from Policybazaar easily by following the below-mentioned steps: Take a look below to understand the buying process of LIC Plans:

Step 1: Visit the Policybazaar homepage

Step 2: Select LIC Plans

Step 3: Fill in the form with your name and contact number, and click on View Plans

Step 4: After this, on the next page, fill in your age, current city and annual income

Step 5: Once done, you can check the plans available and customize the amount and policy tenure for your investments

Step 6: Choose the plan and pay your premiums online.

Note: Policybazaar also provides door-to-door advisors to resolve your queries.

Wrapping It Up

The LIC Index Plus plan is an attractive option for those looking to combine life insurance with investment opportunities. It caters to various financial needs with features like flexible premium payments, the potential for high returns, and built-in protections such as the grace period and free look period. By understanding these details, you can make an informed decision and secure your future and that of your loved ones.