Important Notes
LIC Index Plus Plan 873 is a market-linked ULIP plan. Returns depend on fund performance and market movement of Nifty 50 / Nifty 100 indices. This calculator provides estimated values based on assumed returns, mortality charges, FMC, premium allocation charges, and guaranteed additions. Actual maturity value may vary depending on NAV performance and LIC policy conditions.Investing in a life insurance policy that provides both financial protection and wealth-building opportunities has become increasingly important in today’s financial environment. LIC Index Plus Plan 873 is a Unit Linked Insurance Plan (ULIP) introduced by the Life Insurance Corporation of India that combines life insurance coverage with investment exposure to leading stock market indices such as Nifty 50 and Nifty 100.
The plan is specially designed for individuals who want to secure their family’s future while also benefiting from the long-term growth potential of equity markets.
What is LIC Index Plus Plan 873?
LIC Index Plus Plan 873 is a market-linked life insurance plan that offers a combination of insurance protection and investment growth. Unlike traditional insurance plans that mainly provide fixed returns, this ULIP invests a portion of the premium into market-linked index funds associated with Nifty 50 and Nifty 100.
The plan was launched on February 6, 2024, with the objective of helping policyholders build long-term wealth while enjoying life insurance coverage throughout the policy term.
LIC Index Plus Plan 873 Eligibility Criteria
What Are the Eligibility Conditions for LIC Index Plus Plan 873?
| Parameter | Details |
|---|---|
| Minimum Entry Age | 90 days completed |
| Maximum Entry Age | 50 years for 10x Annualized Premium |
| 60 years for 7x Annualized Premium | |
| Basic Sum Assured | 7x or 10x annualized premium |
| Minimum Policy Term | 10 years if annual premium is ₹48,000 or above |
| 15 years if annual premium is below ₹48,000 | |
| Maximum Policy Term | 25 years |
| Minimum Premium | Yearly: ₹30,000 |
| Half-yearly: ₹15,000 | |
| Quarterly: ₹7,500 | |
| Monthly (NACH): ₹2,500 | |
| Maximum Premium | No fixed limit, subject to underwriting |
| Maximum Maturity Age | 75 years for 10x Basic Sum Assured |
| 85 years for 7x Basic Sum Assured |
What Are the Key Features of LIC Index Plus Plan 873?
Understanding the important features of the plan helps investors determine whether it matches their long-term financial and insurance goals.
Main Features of LIC Index Plus Plan 873
- Provides life insurance protection during the policy term
- Offers market-linked returns through ULIP structure
- Investments linked to Nifty 50 and Nifty 100 indices
- Two fund choices available:
- Flexi Growth Fund linked with Nifty 100
- Flexi Smart Growth Fund linked with Nifty 50
- Flexible premium payment modes including monthly, quarterly, half-yearly, and yearly
- Sum assured available up to 10 times annual premium depending on eligibility
- Guaranteed additions credited from the 6th policy year onwards
- Partial withdrawal facility available after 5 years
- Free fund switching facility up to 4 times every year
- Refund of mortality charges on survival till maturity
- Optional Linked Accidental Death Benefit Rider available
- Surrender option available after completion of 5 policy years
Benefits of LIC Index Plus Plan 873
Why Should You Consider LIC Index Plus Plan 873?
Here are some of the major advantages offered by LIC Index Plus Plan 873:
1. Combination of Insurance and Investment
Unlike traditional insurance policies, LIC Index Plus Plan 873 provides both life insurance protection and market-linked wealth creation opportunities, helping policyholders secure their future while growing their investments.
2. Market-Linked Wealth Growth
The returns under this plan are connected to the performance of major stock market indices such as Nifty 50 and Nifty 100, which have the potential to deliver better long-term growth compared to fixed-return investment products.
3. Guaranteed Additions
Guaranteed additions are credited to the policy from the 6th policy year onwards, helping increase the overall fund value regardless of market fluctuations.
4. Flexible Premium Payment Options
The plan allows policyholders to select premium payment frequency and premium amount within the permitted limits, offering better flexibility according to financial capacity and budgeting preferences.
5. Partial Withdrawal Facility
After completing the mandatory 5-year lock-in period, policyholders can make partial withdrawals from the fund value, providing financial support during emergencies or urgent financial requirements.
6. Tax Benefits
Premiums paid under the plan may qualify for deductions under Section 80C of the Income Tax Act. In addition, maturity proceeds may also remain tax-free under Section 10(10D), subject to prevailing tax rules.
How Does LIC Index Plus Plan 873 Work?
When a policyholder invests in LIC Index Plus Plan 873, the premium amount is divided into two components:
Insurance Cost Component
A portion of the premium is used towards providing life insurance coverage, including mortality charges and related insurance expenses.
Investment Component
The remaining premium amount is invested in the selected market-linked fund associated with Nifty 50 or Nifty 100 indices.
The value of the purchased units changes according to stock market performance. At policy maturity, the policyholder receives the accumulated fund value along with applicable guaranteed additions. In the event of the policyholder’s death during the policy term, the nominee receives the higher of the sum assured or the available fund value.
What is LIC Index Plus Plan 873 Calculator?
The LIC Index Plus Plan 873 Calculator is an online calculation tool designed to help individuals understand the financial aspects and estimated returns of the plan more easily.
How Does LIC Index Plus Plan 873 Calculator Help?
The calculator helps policyholders:
- Estimate monthly, quarterly, half-yearly, or annual premium amounts
- Calculate estimated maturity value based on assumed market performance
- Understand expected death benefits payable to nominees
- Track estimated fund value during different policy years
- Evaluate surrender value projections during the policy term
This tool helps investors make more informed decisions before purchasing the policy.
How to Use LIC Index Plus Plan 873 Calculator?
Using the LIC Index Plus Plan 873 Calculator is simple and convenient. Follow these basic steps to estimate your policy benefits and future fund value.
Step-by-Step Process to Use LIC Index Plus Plan Calculator
- Enter your current age to check eligibility and premium calculations
- Select the desired policy term according to your investment and insurance goals
- Choose the sum assured amount required for life cover
- Enter the premium amount you wish to invest annually, with a minimum premium of ₹30,000
- Select your preferred fund option:
- Flexi Growth Fund linked to Nifty 100
- Flexi Smart Growth Fund linked to Nifty 50
- View the estimated maturity value, death benefit, fund value, and surrender value generated by the calculator based on your selected details
Example Calculation Using LIC Index Plus Plan 873 Calculator
Here is a sample illustration showing how the policy may perform over time based on assumed market growth.
| Details | Example |
|---|---|
| Age | 34 years |
| Policy Term | 21 years |
| Annual Premium | ₹1,00,000 |
| Sum Assured | ₹10,00,000 |
| Selected Fund | Flexi Growth Fund (Nifty 100) |
Illustrative Policy Projection
| Policy Year | NAV Value | Total Premium Paid | Fund Value | Surrender Value | Death Benefit |
|---|---|---|---|---|---|
| 1 | ₹10 | ₹1,00,000 | ₹1,00,000 | ₹0 | ₹10,00,000 |
| 5 | ₹14.6 | ₹5,00,000 | ₹5,00,000 | ₹0 | ₹10,00,000 |
| 10 | ₹23.5 | ₹10,00,000 | ₹15,13,487 | ₹15,13,487 | ₹15,13,487 |
| 15 | ₹34.5 | ₹15,00,000 | ₹26,79,459 | ₹26,79,459 | ₹26,79,459 |
| 21 | ₹67.25 | ₹21,00,000 | ₹61,85,851 | ₹61,85,851 | ₹61,85,851 |
Note: NAV values shown above are purely illustrative and based on assumed market performance.
As illustrated above, the maturity value after 21 years may grow significantly depending on market performance and fund growth. The policy also offers strong financial protection through the death benefit payable to nominees.
Advantages of Using LIC Index Plus Plan 873 Calculator
Why Should You Use LIC Index Plus Calculator?
- Instant estimation of premium and maturity value
- Better financial planning according to long-term goals
- Easy comparison of different premium and sum assured combinations
- Clear understanding of fund value and policy benefits
- Helps investors make informed financial decisions
- Gives an estimate of how market performance may affect returns
What Charges Apply in LIC Index Plus Plan 873?
Like other ULIP plans, LIC Index Plus Plan 873 includes certain charges that are deducted from the premium or fund value.
Main Charges Under LIC Index Plus Plan 873
- Premium Allocation Charges
- Policy Administration Charges
- Fund Management Charges
- Mortality Charges for life insurance coverage
The mortality charges deducted during the policy term are refunded at maturity if the policyholder survives till the end of the policy term.
The calculator helps users estimate returns after considering these applicable charges for a more realistic understanding of policy performance.
Important Tips While Using LIC Index Plus Plan 873 Calculator
Things to Keep in Mind Before Using the Calculator
- ULIP returns depend on stock market performance and may fluctuate
- Always use updated NAV values for better accuracy
- Select the fund option according to your risk-taking capacity
- Utilize fund switching and partial withdrawal features carefully
- Choose the premium payment mode and policy term according to your financial planning goals
Frequently Asked Questions
What is LIC Index Plus Plan 873?
LIC Index Plus Plan 873 is a Unit Linked Insurance Plan (ULIP) offered by the Life Insurance Corporation of India that combines life insurance protection with market-linked investment opportunities through stock market indices such as Nifty 50 and Nifty 100.
Who Can Purchase LIC Index Plus Plan 873?
Individuals between 90 days and 55 years of age are eligible to purchase this plan. The available policy term generally ranges from 10 years to 21 years depending on the age at entry.
Which Fund Options Are Available Under LIC Index Plus Plan 873?
The plan offers two market-linked investment fund choices:
- Flexi Growth Fund linked to Nifty 100
- Flexi Smart Growth Fund linked to Nifty 50
Both fund options are designed to provide returns based on stock market index performance.
What Is the Minimum Premium Required for LIC Index Plus Plan 873?
The minimum yearly premium under this plan is ₹30,000. Policyholders can choose to pay premiums monthly, quarterly, half-yearly, or annually according to their convenience.
Can I Withdraw Money Before Policy Maturity?
Yes, partial withdrawals are allowed after completion of 5 policy years, subject to applicable limits and policy conditions to maintain sufficient fund value.
Conclusion
LIC Index Plus Plan 873 provides an attractive opportunity for investors looking to combine life insurance security with long-term equity market growth potential. The plan also offers flexibility in premium payment modes and investment fund selection.
The LIC Index Plus Plan Calculator serves as a useful tool for individuals to estimate premiums, maturity benefits, expected returns, and overall policy performance based on their financial goals and investment preferences.
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