LIC offers several Unit Linked Insurance Plans (ULIPs) that combine life insurance with market-linked wealth creation. Unlike traditional plans, these invest in equity and debt markets, offering potentially higher returns (though with market risk).
🏢 LIC’s Current ULIP Plans (2026)
1. LIC Index Plus (Plan No. 873)
This is LIC’s newest ULIP that specifically invests in the Nifty 50 or Nifty Next 50 indices.
Key Benefit: Low cost and focuses on replicating the performance of the top 50/100 Indian companies.
Guaranteed Additions: Extra units are added to your fund at the end of specific years (6th, 10th, 15th, etc.).
Refund of Mortality Charges: If you survive till maturity, LIC refunds all the life insurance cover charges deducted during the term.
2. LIC SIIP (Plan No. 752)
A regular premium plan designed for systematic long-term investing.
Key Benefit: Offers four fund options (Bond, Secured, Balanced, and Growth) to match your risk appetite.
Flexibility: Allows switching between funds and partial withdrawals after a 5-year lock-in.
3. LIC Nivesh Plus (Plan No. 749)
This is a Single Premium (one-time payment) plan.
Key Benefit: Ideal for those with a lump sum amount who want market exposure plus life cover.
Choice of Cover: You can choose a Sum Assured of 1.25x or 10x of your single premium.
📉 Investment Scenarios (12% Expected Return)
Scenario A: Large Investment (₹1 Crore Goal)
If you want to achieve a ₹1 Crore Corpus in 10 years at a 12% annual return:
Monthly SIP Required: You would need to invest approximately ₹43,500 per month.
Lump Sum Required: You would need to invest a one-time amount of approximately ₹32.2 Lakhs.
Scenario B: Investing ₹1,00,000 for 10 Years
If you invest ₹1,00,000 as a single premium and leave it for 10 years at a 12% annual return, here is how your money grows:
| Year | Calculation (P×(1+r)t) | Estimated Fund Value |
| Start | Initial Investment | ₹1,00,000 |
| End of 10 Years | $1,00,000 \times (1.12)^{10}$ | ₹3,10,585 |
| End of 11 Years | $3,10,585 \times (1.12)^{1}$ | ₹3,47,855 |
Note: At the end of the 11th year, your investment would grow to approximately ₹3.47 Lakhs.
⚖️ Is LIC ULIP better than others?
Whether it is “better” depends on your priority:
Vs. Private ULIPs: Private players (like HDFC or ICICI) often have more aggressive fund options and sometimes lower charges in “Online-only” plans. However, LIC offers the Sovereign Guarantee (Security of the Govt. of India) and a much higher trust factor for long-term claims.
Vs. Mutual Funds: Mutual Funds generally have lower charges (no mortality or allocation fees). However, ULIPs offer a Tax Advantage: Under current laws, if the annual premium is below ₹2.5 Lakhs, the entire maturity is tax-free (Section 10(10D)), whereas Mutual Funds attract Capital Gains Tax.
Vs. Traditional LIC Plans: ULIPs will almost always beat traditional plans (like Jeevan Labh or Anand) in returns over 10+ years because traditional plans rarely exceed 6-7% returns.