LIC’s Index Plus (Plan No. 873, UIN No. 512L354V01)

Have you heard about LIC’s Index Plus plan? It’s a new type of insurance plan from the Life Insurance Corporation of India (LIC). This plan started on February 5, 2024. It gives you life insurance and also helps you save money over time.

With the Index Plus plan, you pay a regular amount of money called a premium. Some of this money is used to give you life insurance. The rest is invested in the market to help your money grow. But since it’s not a participating plan, you won’t get a share of LIC’s profits.

What is Index Plus?

LIC’s Index Plus is a special type of insurance plan called a unit-linked insurance plan (ULIP). When you get this plan, you pay a regular amount of money called a premium. This plan has a special number called UIN No. 512L354V01.

With the Index Plus plan, you can choose between two different funds to invest your money in. One is called the Flexi Growth Fund, which puts your money in big companies listed on something called the NIFTY 100. The other is called the Flexi Smart Growth Fund, which invests in the top 50 companies on the NIFTY 50.

Key Features

  • Gives you life insurance and also helps your money grow
  • Adds extra money to your plan at certain times based on how much premium you pay
  • Lets you invest in the stock market through special funds
  • Gives back some charges when your plan ends, so you get more money
  • Allows you to take out some money after 5 years
  • Lets you choose how much life insurance you want based on your premium
  • Gives you more extra money if you pay a higher premium


To get the LIC Index Plus plan, you need to be at least 90 days old. The oldest you can be depends on how much life insurance you want. If you want insurance that’s 10 times your yearly premium, you can’t be older than 50. If you want insurance that’s 7 times your yearly premium, you can be up to 60 years old. If a child gets this plan, the insurance starts when they turn 8 years old or after 2 years, whichever comes first.

Youngest age90 days old
Oldest age50 years (for 10 times premium), 60 years (for 7 times premium)
Plan length10-25 years
When to payYearly, Half-yearly, Every 3 months, Monthly
Life insurance amount7 or 10 times your yearly premium


If you stay with the Index Plus plan until it ends, you’ll get the money that your investment has grown to. And here’s something really special – all the charges that were taken out for life insurance will be given back to you at the end. So you get even more money!

If something sad happens and the person with the insurance dies, the money their family gets depends on when it happened. They’ll either get the basic amount of insurance, or 105% of all the premiums paid, or the value of the investment – whichever is the most. This makes sure the family is taken care of.

To make the LIC Index Plus even better, it adds extra guaranteed money at certain times. How much extra you get depends on your premium and how long you have the plan. If your yearly premium is Rs. 48,000 or more, you get even more extra money. It’s like a reward for investing more!

Optional Benefits

If you want, you can pay a bit more and get something called the Linked Accidental Death Benefit Rider. If the person with the insurance has an accident and dies, this rider gives an extra amount of money to their family. It’s like extra protection for them.

After you’ve had the Index Plus plan for 5 years, you’re allowed to take out some of the money if you need it. How much you can take out depends on how long you’ve had the plan. The longer you’ve had it, the more you can take out. This lets you get money if you need it for something important.


If the person with the insurance chooses to end their life within the first 12 months of getting the plan or restarting it, the family will only get the value of the investment. They won’t get the extra life insurance money. This is a rule to make sure everything is fair for everyone who has the plan.


What happens if I stop paying premiums?

If you don’t pay your premiums on time for your LIC Index Plus plan, it will stop working. But don’t worry! You have 3 years from when you missed the first payment to start paying again and make your plan active. You won’t be charged any interest for the late payments, but some charges will be taken from your investment money when you restart the plan.

Can I surrender my policy?

Yes, you can choose to end your Index Plus policy at any time. If you do this within the first 5 years, your investment money will be moved to a special fund called the Discontinued Policy Fund. You’ll get this money only after the 5 years are over. But if you end your policy after 5 years, you’ll get your investment money right away.

Are there any riders available with Index Plus?

Yes, you can get extra protection with the LIC’s Linked Accidental Death Benefit Rider. If you pay a bit more, your family will get an extra amount of money if you pass away because of an accident. This rider helps give your loved ones more financial support during a tough time.

What are the fund management charges?

For the Flexi Growth Fund and Flexi Smart Growth Fund in the LIC Index Plus, there is a charge of 1.35% every year. This charge is taken out each day before figuring out the value of your investment. If your money is in the Discontinued Policy Fund, the charge is lower at 0.5% per year. Remember, these charges can change based on rules from IRDAI.

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