A Comprehensive Guide to LIC’s Single Premium ULIP
The Life Insurance Corporation of India (LIC) launched the LIC Nivesh Plus Plan 849 on 2nd March 2020 as a part of its Unit Linked Insurance Plans (ULIPs). This plan is a great combination of insurance protection and market-linked returns. It is designed for individuals who wish to invest a lump sum amount in a policy that not only grows their investment but also secures their family’s future.
Let’s break down all the essential details of this plan in a clear, human-understandable manner.
🔍 What is LIC Nivesh Plus Plan 849?
LIC Nivesh Plus 849 is a Non-Participating, Single Premium, Unit Linked, Individual Life Insurance Plan, which means:
- Single premium: Pay once and stay insured for the entire policy term.
- Unit Linked: Investment returns are linked to the performance of chosen funds.
- Non-participating: No bonus or profit sharing from LIC’s profits.
- Life insurance cover: Ensures financial protection to your loved ones in case of your untimely death.
📌 Key Highlights
| Feature | Details |
|---|---|
| Plan Name | LIC Nivesh Plus |
| Plan Number | 849 |
| Launch Date | 2nd March 2020 |
| UIN | 512L317V01 |
| Type | ULIP – Insurance + Investment |
| Premium Type | Single Premium |
| Sum Assured Options | 1.25x or 10x of the Single Premium |
| Availability | Online and Offline |
✅ Sum Assured Options
When buying this policy, the policyholder must choose one of the following:
- Option 1: 1.25 times the Single Premium
- Option 2: 10 times the Single Premium
Once selected, this option cannot be changed during the term of the policy.
📋 Eligibility Criteria
| Particular | Option 1 (1.25x Premium) | Option 2 (10x Premium) |
|---|---|---|
| Minimum Entry Age | 90 Days (Completed) | 90 Days (Completed) |
| Maximum Entry Age | 70 Years (Nearer Birthday) | 35 Years (Nearer Birthday) |
| Policy Term | 10 to 25 Years | 10 to 25 Years (up to age 25) 10–20 years (age 26–30) 10 years (age 31–35) |
| Minimum Premium | ₹1,00,000 | ₹1,00,000 |
| Premium Increment | In multiples of ₹10,000 | Same |
| Premium Paying Mode | Single Only | Single Only |
| Maturity Age | Minimum – 18 years Maximum – 85 years | Minimum – 18 years Maximum – 50 years |
💰 Death Benefit
▶ Death before commencement of risk:
- The nominee will receive only the Unit Fund Value.
▶ Death after commencement of risk:
- The nominee will receive the higher of:
- Basic Sum Assured (minus any partial withdrawals made in the last 2 years), OR
- Unit Fund Value
🎁 Maturity Benefit
- If the policyholder survives the term, the entire Unit Fund Value is paid as the maturity benefit.
- This amount depends on the fund performance over the years.
🎯 Guaranteed Additions
Guaranteed Additions are added to the Unit Fund at the end of certain policy years:
| Policy Year | Guaranteed Additions (as % of Single Premium) |
|---|---|
| 6th Year | 3% |
| 10th Year | 4% |
| 15th Year | 5% |
| 20th Year | 6% |
| 25th Year | 7% |
These additions act as loyalty rewards and enhance your investment value.
📈 Investment Fund Options
LIC provides 4 fund types with varying risk levels. You can choose any one fund initially or switch later.
| Fund Name | Debt Allocation | Equity Allocation | Risk Level |
|---|---|---|---|
| Bond Fund | 60–100% Govt/Corporate Debt | 0% Equity | Low |
| Secured Fund | 45–85% Debt | 15–55% Equity | Low to Medium |
| Balanced Fund | 30–70% Debt | 30–70% Equity | Medium |
| Growth Fund | 20–60% Debt | 40–80% Equity | High |
🔁 Switching Between Funds
- 4 Free Switches allowed in a policy year.
- Beyond that, ₹100 per switch is charged.
💸 Partial Withdrawals
You can withdraw funds after 5 years, subject to the following:
| Policy Year | Max Withdrawal (% of Fund) |
|---|---|
| 6–10 years | 15% |
| 11–15 years | 20% |
| 16–20 years | 25% |
| 21–25 years | 30% |
Partial withdrawals are allowed only if the Life Assured is 18 years or older.
🔓 Surrender Value
🔒 During Lock-in Period (5 years):
- The policyholder gets Unit Fund Value minus Discontinuance Charges, transferred to a Discontinued Policy Fund.
- It earns 4% interest annually (subject to change by IRDAI).
- Amount is payable after 5 years.
🔓 After Lock-in Period:
- Entire Fund Value is paid on surrender.
- No discontinuance charge is applied.
Once surrendered, the policy cannot be revived.
💼 Charges Under LIC Nivesh Plus 849
📌 Premium Allocation Charge
| Sale Channel | Allocation Charge |
|---|---|
| Offline | 3.30% of premium |
| Online | 1.50% of premium |
This is deducted upfront from the premium before buying units.
📌 Fund Management Charge (FMC)
- 1.35% p.a. of Unit Fund for all funds
- 0.50% p.a. for Discontinued Policy Fund
📌 Discontinuance Charges
| Policy Year | For Premium ≤ ₹3L | For Premium > ₹3L |
|---|---|---|
| 1st Year | Lower of 2% or ₹3,000 | Lower of 1% or ₹6,000 |
| 2nd Year | Lower of 1.5% or ₹2,000 | Lower of 0.7% or ₹5,000 |
| 3rd Year | Lower of 1% or ₹1,500 | Lower of 0.5% or ₹4,000 |
| 4th Year | Lower of 0.5% or ₹1,000 | Lower of 0.35% or ₹2,000 |
| 5th+ Year | Nil | Nil |
🔒 Other Important Terms
- Loan: Not allowed.
- Top-up Premiums: Not allowed.
- Suicide Clause: If death occurs due to suicide within 12 months, only the Unit Fund Value is payable.
- Compulsory Termination: If Unit Fund drops below charges post 5 years, the policy is terminated and remaining amount is paid.
📊 LIC Nivesh Plus 849 Example
Let’s understand the policy with a real-world scenario.
✨ Policy Example:
| Details | Value |
|---|---|
| Age | 34 Years |
| Premium Paid | ₹2,00,000 |
| Sum Assured Option | 1.25x = ₹2,50,000 |
| Policy Term | 21 Years |
| Fund Type | Growth Fund |
| NAV at Purchase | ₹10 |
| Year | Guaranteed Additions | NAV | Fund Value | Risk Cover | Surrender Value |
|---|---|---|---|---|---|
| 34 | 0 | 10.00 | ₹2,00,000 | ₹2,50,000 | 0 |
| 39 | ₹6,000 | 16.10 | ₹3,10,674 | ₹2,50,000 | ₹3,10,674 |
| 43 | ₹8,000 | 23.57 | ₹4,62,805 | ₹2,50,000 | ₹4,62,805 |
| 48 | ₹10,000 | 37.96 | ₹7,57,069 | ₹2,50,000 | ₹7,57,069 |
| 53 | ₹12,000 | 61.14 | ₹12,34,008 | ₹2,50,000 | ₹12,34,008 |
| 54 | 0 | 67.25 | ₹13,69,329 | ₹2,50,000 | ₹13,69,329 |
📌 Maturity Amount: ₹13,69,329
🔚 Final Words: Is LIC Nivesh Plus 849 Right for You?
LIC Nivesh Plus Plan 849 is ideal for investors who:
- Want market-linked growth with life cover
- Prefer a one-time investment
- Are okay with some investment risk
- Want to stay invested long-term (10–25 years)
It combines the security of life insurance with potential wealth creation. For individuals not looking for regular premium commitments and comfortable with ULIP structures, Nivesh Plus 849 can be a smart and balanced financial tool.
