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ULIP PLAN

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:

YearCalculation (P×(1+r)t)Estimated Fund Value
StartInitial 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.

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