LIC Index Plus Plan: 5 things to know before investing in this unit linked policy

In the rapidly evolving landscape of financial products, the Life Insurance Corporation of India’s (LIC’s) Index Plus Plan stands out as a robust offering for those who are aspiring to seek both life insurance and market linked investment growth.

This particular plan launched as a unit linked, non participating, regular premium plan caters individuals who wish to protect themselves and their families while simultaneously aiming for wealth accumulation related to the market performance of prominent stock indices. 

Therefore, keeping the above points in mind, check out five important factors before considering investing in the LIC Index Plus Plan:

1. Dual benefit of insurance and investment

This particular plan combines life insurance coverage throughout the policy term. It also provides policy holders with the opportunity to invest in selected market linked funds.

Different from traditional insurance plans, it does not participate in profit sharing. That is why policyholders are never provided dividends or bonuses from the insurer’s surplus. On the other contrary, returns are linked to the chosen fund’s performance, providing the potential for higher growth in comparison with the conventional savings plans.

2. Flexible fund choices and withdrawal options

If you invest in this plan then they can select between two fund options. The Flexi Growth Fund and Flexi Smart Growth Fund. This helps the investors in taking a call on their investment strategy according to their risk tolerance and growth aspirations.

Not only this, after a mandatory five year lock in period partial withdrawals are allowed thus provisioning for liquidity needs to meet unforeseen financial needs. This flexibility ensures that the holders of the policy can avail funds without requiring to surrender their policy. This ensures in keeping financial security intact. 

3. Guaranteed additions and refund of charges

A special feature of this plan is the guaranteed additions that are credited to the unit fund at specific intervals. These investments keep things in order, help in retirement planning and also boost the investment value.

They are determined as a percentage of the annual premium. Furthermore, at the time of maturity, all morality charges deducted during the initiation of the policy term are refunded. Thus enhancing the overall maturity benefits.

4. Accessible and convenient purchase options

You can purchase this plan from both online and offline modes. For the online purchase you can directly reach out to the official website of LIC. Whereas, for the offline mode you can pay a visit to the nearest LIC branch and discuss with a licensed agent then avail the policy post proper consultation.

These avenues ensure that a wide range of applicants can easily apply for and opt for the plan regardless of their location or tech savviness.

5. Key takeaways for potential investors

Now before you consider investing it is important for you to assess your financial goals, aspirations and risk tolerance capacity. The Index Plus Plan is best suited for those applicants who are comfortable with market linked returns and are seeking a combination or a blend of investment and insurance both.

You should also always review the product brochure given on the official website of LIC and use online calculators to carefully estimate premiums, potential returns and the benefits before making a decision.

LIC Index Plus Plan – Features at a glance

Hence, the LIC Index Plus Plan can be an ideal option for individuals seeking a balanced mix of life cover, safety and market driven investment potential. Still, aligning the plan with your financial goals, long term investment vision and risk profile is crucial before making any financial commitments.

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