Unlock the benefits of LIC’s Index Plus policy: everything you need to know

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Unlock the benefits of LIC’s Index Plus policy: everything you need to know
  • By Ankita Pal
  • 07th February, 2024
  • Insurance

LIC’s Index Plus Life Insurance Plan: A Comprehensive Overview

In a recent announcement, the Life Insurance Corporation of India (LIC) introduced the Index Plus, a unit-linked, regular premium, individual life insurance plan. This innovative offering provides a combination of life insurance coverage and savings benefits throughout the policy’s duration, according to a statement released by LIC.

Understanding the Key Features

Let’s delve into the core features that make LIC’s Index Plus policy stand out:

1. Entry Age and Basic Sum Assured

  • Minimum Entry Age: 90 days (completed).
  • Maximum Entry Age: 50 or 60 years (nearer birthday), depending on the basic Sum Assured.
  • Basic Sum Assured: Ranges from 7 to 10 times the Annualized premium for ages 90 days (completed) to 50 years (nearer birthday), and 7 times the Annualized premium for ages 51 to 60 years (nearer birthday).

2. Maturity Age and Policy Term

  • Minimum Maturity Age: 18 years (completed).
  • Maximum Maturity Age: 75 or 85 years (nearer birthday), depending on the basic sum assured.
  • Minimum Policy Term: 10 or 15 years, based on Annualized premium, with a maximum term of 25 years. The premium paying term aligns with the policy term.

3. Premium Details

  • Minimum Premium: Varied ranges include ₹30,000 (Yearly), ₹15,000 (Half-yearly), ₹7,500 (Quarterly), and ₹2,500 (Monthly via NACH), depending on the payment frequency.
  • Maximum Premium: No limit, subject to underwriting decision.

4. Fund Options

  • Investors can choose between two funds: Flexi Growth Fund and Flexi Smart Growth Fund. These funds primarily invest in selected stocks from either the NSE NIFTY 100 index or NSE NIFTY50 index, respectively.

5. Withdrawal Options

  • Partial Withdrawals: Available after the five-year lock-in period, subject to specific conditions.

6. Payouts and Benefits

  • Maturity Payout: Upon surviving the maturity date, the policyholder receives an amount equivalent to the Unit fund Value as of the maturity date.
  • Death Benefit: The amount payable in case of the policyholder’s death varies depending on whether it occurs before or after the commencement of risk. Refunds of mortality charges are subject to terms and conditions.
  • Additional Riders: Policyholders have the option to avail LIC’s Linked Accidental Death benefit rider for added protection.


LIC’s Index Plus policy offers a versatile and comprehensive life insurance solution with a focus on investment growth and financial security. With flexible premium payment options, a range of funds to invest in, and the ability to make partial withdrawals, policyholders can tailor their coverage to suit their evolving needs and financial goals. Whether it’s securing your family’s future or building wealth over time, the Index Plus plan presents a compelling opportunity for individuals seeking robust life insurance coverage coupled with long-term savings benefits.

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