LIC Fortune Plus (Plan 187)
Life Insurance Corporation of India (LIC) has introduced several insurance products combining life protection with savings and investment opportunities. LIC Fortune Plus Plan 187 was one such unit-linked insurance plan (ULIP), designed to provide life insurance protection while allowing policyholders to invest their premiums in selected market-linked funds.
Unlike traditional insurance policies that may offer fixed benefits or declared bonuses, Fortune Plus is linked to the performance of its underlying funds. As a result, the policy's fund value can increase or decrease according to market movements and changes in the Net Asset Value (NAV) of the units.
What is LIC Fortune Plus Plan 187?
LIC Fortune Plus Plan 187, UIN 512L244V01, is a unit-linked insurance product that combines life insurance with investment in different funds.
A portion of the premium is used to provide insurance protection, while the remaining amount is allocated to investment units after applicable charges. The value of these units changes according to the NAV of the selected fund.
Because the plan is market-linked, the maturity value cannot be predetermined or guaranteed. The final fund value depends on investment performance, applicable charges, NAV movements, and the number of units held by the policyholder.
Launch Date and Withdrawal Status
According to LIC's plan NAV information, Fortune Plus Plan 187 was introduced on 23 August 2007.
The withdrawal status of this older ULIP can sometimes be confusing because Fortune Plus 187 and Profit Plus 188 are frequently discussed together. Profit Plus 188 is shown as withdrawn on 1 September 2010, while Fortune Plus 187 appears in older LIC plan information. Therefore, it is best to treat Fortune Plus 187 as an old/discontinued ULIP for new sales, while existing policies continue according to their original policy conditions.
Important Dates
- Launch Date: 23 August 2007
- Current Status: Older/discontinued ULIP for new business
- Existing Policies: Continue according to their respective policy terms
How Does the LIC Fortune Plus Plan 187 Calculator Work?
A LIC Fortune Plus Plan 187 Calculator is designed to help policyholders estimate the possible fund value and understand how premiums, charges, investment performance, and withdrawals can affect the policy.
Since Fortune Plus is a ULIP, its calculator works differently from calculators for traditional LIC endowment plans.
A typical calculator may consider:
- Age of the policyholder
- Policy term
- Premium amount
- Premium-paying period
- Selected investment fund
- Assumed rate of return
- Applicable policy charges
- Partial withdrawals
The calculator can then provide an estimated fund value and potential maturity amount based on the assumptions entered.
Example
Suppose a policyholder pays a first-year premium of ₹20,000 and continues paying premiums for five years. A calculator may estimate:
- Units purchased after applicable charges
- Fund value at different stages
- Effect of assumed investment growth
- Estimated value at maturity
These figures are only projections. Actual results can be different because the investment value depends on future market performance and NAV movements.
Key Features of LIC Fortune Plus Plan 187
1. Life Insurance and Investment in One Plan
Fortune Plus combines insurance protection with investment. Part of the premium is used toward life cover, while the remaining amount is invested in the fund selected by the policyholder.
The life cover provides a defined sum assured, while the investment component can fluctuate according to the performance of the chosen fund.
In the event of death during the policy term, the applicable death benefit is generally based on the higher of the specified sum assured or fund value, subject to the policy's conditions and partial-withdrawal provisions.
2. Premium Payment Structure
The plan generally follows a limited premium-paying structure, with a five-year premium-paying period commonly associated with the product.
The premium structure may include a higher contribution in the first year followed by lower contributions in subsequent years. Exact premium requirements depend on the policy terms and applicable conditions.
3. Different Fund Choices
One of the major advantages of a ULIP is the availability of different investment funds. Fortune Plus provides fund options with varying levels of market exposure, such as:
- Equity-oriented funds: Higher exposure to equities and potentially higher growth, along with greater market risk.
- Debt-oriented funds: Relatively lower-risk investments with comparatively lower growth potential.
- Balanced or mixed funds: A combination of equity and debt investments.
The choice of fund can significantly influence the policy's future value. Fund switching may also be available subject to the applicable policy conditions and charges.
4. Applicable Charges
As with other ULIPs, several charges can affect the number of units purchased and the overall fund value. These may include:
- Premium allocation charges
- Mortality charges
- Policy administration charges
- Fund management charges
These deductions should be considered when estimating the long-term value of the policy because they can affect investment growth.
Maturity and Death Benefits
Maturity Benefit
If the life assured survives until the end of the policy term, the applicable fund value is payable according to the policy conditions.
The maturity amount is based on the value of the units held on the maturity date. Since the plan is market-linked, the final amount depends on the NAV at that time and is therefore not guaranteed.
Death Benefit
If the life assured dies during the policy term, the applicable death benefit is generally based on the higher of the specified sum assured or fund value, subject to the policy's terms and rules relating to partial withdrawals.
Where an applicable accident benefit rider has been selected, additional benefits may be payable in the event of accidental death.
Surrender and Lapse Conditions
Fortune Plus has specific rules concerning surrender and continuation of the policy.
- Surrender value becomes available after the applicable minimum policy period.
- If premiums are discontinued, the policy may lapse or enter the applicable discontinued/revival provisions.
- Policy charges and the fund value can affect whether the policy continues.
- The policy may be terminated if the fund value falls below the prescribed minimum level.
The exact treatment should always be checked against the original policy document.
Partial Withdrawal Facility
The plan provides a facility for partial withdrawal of units after the applicable lock-in period.
Under the stated conditions:
- Partial withdrawal is available after the third policy anniversary.
- A minimum fund value of around ₹10,000 may be required.
- For policies involving minors, withdrawal restrictions may apply until the life assured reaches 18 years.
- A partial withdrawal can temporarily reduce the applicable sum assured by the amount withdrawn.
This facility can provide liquidity when funds are required without completely surrendering the policy. However, withdrawals can affect the insurance protection and long-term investment value.
Does LIC Fortune Plus Plan 187 Provide a Loan?
No. Fortune Plus Plan 187 does not provide a loan facility like many traditional LIC policies.
If funds are required, the policyholder may instead have access to options such as:
- Partial withdrawal after the applicable period
- Surrender of the policy after the permitted period
- Other personal financing arrangements
Fortune Plus 187 vs Traditional Endowment Plans
| Feature | Fortune Plus 187 | Traditional Endowment Plan |
|---|---|---|
| Return type | Market-linked | Generally non-market-linked |
| Investment risk | Depends on selected fund | Generally lower |
| Premium period | Usually limited | Varies by plan |
| Fund switching | Available under applicable conditions | Generally not applicable |
| Early withdrawal | Subject to ULIP rules | Depends on policy conditions |
| Return guarantee | Not guaranteed | May include guaranteed benefits/bonuses depending on plan |
Fortune Plus may appeal to policyholders who are comfortable with market fluctuations and want investment growth potential. Those looking for more predictable benefits may prefer a traditional insurance product.
How to Use the LIC Fortune Plus Plan 187 Calculator
A calculator for this plan should collect the important policy and investment details before generating an estimate.
Step 1: Enter Policy Details
Enter:
- Age of the life assured
- Policy term
- Premium-paying term
- First-year premium
- Premiums for subsequent years
- Selected fund or expected rate of return
Step 2: Calculate the Investment
The calculator can then estimate the yearly development of the policy by:
- Applying applicable charges.
- Determining the units purchased.
- Applying the assumed NAV growth.
- Calculating the estimated fund value at the end of each year.
Step 3: View the Results
The calculator can display:
- Total premiums paid
- Estimated year-wise fund value
- Approximate maturity value
- Estimated growth compared with total premiums
- Effect of partial withdrawals, where applicable
Because Fortune Plus is a market-linked product, the calculator should clearly state that its results are illustrative estimates and not guaranteed returns.
Common Mistakes to Avoid
Policyholders should understand that Fortune Plus is not a fixed-return investment product.
Some common mistakes include:
- Assuming that projected returns are guaranteed.
- Ignoring policy charges while estimating returns.
- Making frequent withdrawals that affect long-term growth and insurance cover.
- Selecting an investment fund without considering personal risk tolerance.
A better approach is to review the original policy documents, understand the charges and fund options, and use realistic assumptions when calculating future values.
Who May Find Fortune Plus 187 Suitable?
The plan may be relevant for people who:
- Want life insurance combined with investment.
- Are comfortable with market-related investment risk.
- Have long-term financial goals.
- Understand that investment returns can fluctuate.
- Are willing to remain invested for the long term.
It may be less appropriate for people who require guaranteed or highly predictable returns, need regular guaranteed income, or expect to make frequent withdrawals.
Frequently Asked Questions
What is LIC Fortune Plus Plan 187?
LIC Fortune Plus Plan 187 is a unit-linked insurance product that combines life insurance protection with investment in selected funds. The value of the investment depends on the performance and NAV of the underlying units, so returns are not guaranteed.
When was LIC Fortune Plus Plan 187 launched?
The plan was introduced on 23 August 2007 according to LIC's plan NAV information.
Is Fortune Plus Plan 187 available for new policies?
It is generally treated as an older ULIP that has been discontinued for new business. Existing policyholders continue to receive benefits according to the terms of their individual policies.
What is the premium-paying term?
A five-year premium-paying period is commonly associated with Fortune Plus 187, while the overall policy term can extend for a longer period depending on the policy option.
Can I take a loan against Fortune Plus Plan 187?
No. The plan does not provide a conventional loan facility. Depending on the policy conditions, a policyholder may instead use partial withdrawal or surrender options after the applicable period.
When can partial withdrawal be made?
Partial withdrawal can generally be made after the third policy anniversary, subject to the applicable minimum fund-value and other policy conditions.
Does partial withdrawal affect the sum assured?
Yes. Under the stated conditions, the sum assured may be reduced by the amount withdrawn for a specified period following the withdrawal.
Conclusion
LIC Fortune Plus Plan 187 was designed to combine life insurance protection with market-linked investment opportunities. Its ULIP structure allowed policyholders to invest in different types of funds while maintaining life cover.
The plan was launched on 23 August 2007 and is now generally considered an older ULIP product that is no longer available for new sales. Existing policies continue according to their original terms.
The LIC Fortune Plus Plan 187 Calculator can be useful for understanding premium allocation, estimated fund growth, potential maturity value, and the effect of withdrawals. However, because the plan is market-linked, calculator results should always be treated as estimates rather than guaranteed returns.
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