LIC ULIP Calculator: Plan 852, 849 & 873 Returns Online

Understanding LIC ULIP Plans: Market Growth Combined with Financial Protection

Unit Linked Insurance Plans (ULIPs) offered by the Life Insurance Corporation of India (LIC) represent a powerful category of financial products. Unlike traditional endowment policies, ULIPs are modern hybrid tools that directly pool a portion of your premium into the capital markets while providing a dedicated life cover wrapper. This allows retail investors to gain index-linked or dynamic equity-focused exposure, while retaining full eligibility for tax-free payouts under Section 10(10D) and premium deductions under Section 80C.

By using our comprehensive LIC ULIP Calculator, you can instantly project premium distribution, allocate allocation fee percentages, evaluate mortality deductions, and calculate maturity corpus estimations at standard 4% and 8% return rates, as well as customized market growth figures.

LIC's Premium ULIP Suite Explained: Plan 852, Plan 849, & Plan 873

LIC of India provides three specialized ULIP strategies tailored to different payment schedules and return mechanisms:

1. LIC SIIP (Plan No. 852) - Regular Premium Wealth Plan

The Systematic Investment Insurance Plan (SIIP) is a regular premium ULIP built to facilitate consistent monthly, quarterly, or yearly savings. Designed for proactive wealth generation over terms up to 25 years, SIIP excels by refunding 100% of all mortality charges at maturity, ensuring that the cost of your life cover is fully reimbursed to you upon surviving the policy term. It also credits high guaranteed additions (scaling up to 25% of annualized premiums) directly to your unit balance.

2. LIC Nivesh Plus (Plan No. 849) - Single Premium Investment Plan

LIC Nivesh Plus is a single-premium investment option designed for individuals with lump-sum investible surpluses. Since the entire capital is allocated to units on day one, Nivesh Plus gains substantial compounding benefits. The plan offers two Sum Assured paths: Option 1 (1.25x the Single Premium) or Option 2 (10x the Single Premium), allowing young investors to choose high protection coverage aligned with maximum tax-exempt returns under current regulatory frameworks.

3. LIC Index Plus (Plan No. 873) - Index-Linked Wealth Creation

LIC Index Plus is a regular premium product that allocates savings directly to funds mirroring major Indian market indices, such as the Nifty 50 or Nifty 100. This is ideal for investors seeking low-cost, systematic index exposure without the active management risks of traditional mutual funds. Similar to SIIP, Index Plus provides a 100% mortality fee refund at maturity along with guaranteed additions added periodically from Year 6 onward.

Actuarial Comparison Matrix: Features and Eligibility Limits

Parameters	LIC SIIP (Plan 852)	LIC Nivesh Plus (Plan 849)	LIC Index Plus (Plan 873)
Premium Frequency	Regular (Yearly, Half-Yearly, Monthly)	Single (Lump-Sum)	Regular (Yearly, Half-Yearly, Monthly)
Minimum Entry Age	90 Days (0 Years)	90 Days (0 Years)	90 Days (0 Years)
Maximum Entry Age	65 Years	70 Years (Option 1) / 35 Years (Option 2)	60 Years (Option 1) / 50 Years (Option 2)
Minimum Premium	₹40,000 Yearly / ₹4,000 Monthly	₹1,00,000 Single Premium	₹20,000 Yearly / ₹2,500 Monthly
Guaranteed Additions	Up to 25% of Annualized Premium	Up to 8% of Single Premium	Up to 25% of Annualized Premium
Mortality Refund	Yes (100% Base Charges Refunded)	No Refund	Yes (100% Base Charges Refunded)

How the LIC ULIP Calculator Projects Your Wealth

To provide premium precision, our simulation engine models the dynamic deductions that take place inside a real LIC policy:

Premium Allocation Charge (PAC): The calculator automatically deducts the initial allocation fee. Online policies feature low PAC (only 1.5% for Nivesh Plus or 3% in Year 1 for Index Plus), ensuring that the maximum percentage of your payment buys active market fund units.
Fund Management Charge (FMC): Deducted at a rate of 1.35% per annum to cover index tracking, asset rebalancing, and regulatory oversight.
Mortality Charges (Sum at Risk): Calculated based on your age and the difference between the Sum Assured and the accumulated fund value. The calculator automatically handles the refund of these charges for SIIP and Index Plus plans at maturity.
Guaranteed Additions: Compiles the exact milestone bonuses credited to your fund at the end of years 6, 10, 15, 20, and 25, accelerating unit accumulation.

⚠️ Actuarial Compliance and Risk Disclosure Unlike traditional non-linked products, investments in Unit Linked Insurance Plans (ULIPs) are subject to capital market risks. The value of your units can fluctuate upwards or downwards depending on market indices, interest rate trends, and the performance of your selected fund (Equity, Balanced, Debt, or Index). Guaranteed Additions and Mortality Refunds are committed by LIC of India under the policy rules, but the final maturity value is dependent on the net returns realized. Tax deductions under Section 80C and exemptions under Section 10(10D) are subject to current legislative laws, which stipulate that ULIPs with aggregate annual premiums exceeding ₹2.5 Lakhs (issued post-Feb 1, 2021) are subject to Capital Gains tax regulations.

Frequently Asked Questions (FAQ)

❓ Is there a lock-in period for LIC ULIP plans?

Yes, under IRDAI regulations, all modern Unit Linked Insurance Plans, including LIC SIIP, Nivesh Plus, and Index Plus, have a mandatory 5-year lock-in period. Policyholders cannot surrender, withdraw, or borrow loans against their accumulated units before completing exactly 5 policy years.

❓ What is the mortality charge refund under LIC SIIP and Index Plus?

One of the most competitive features of LIC SIIP (Plan 852) and LIC Index Plus (Plan 873) is the 100% refund of base mortality charges. Upon surviving the entire policy term, LIC refunds the entire accumulated amount deducted for life insurance cover back into your maturity payout, effectively rendering the life protection cost-free.

❓ Can I switch between different funds under LIC ULIPs?

Yes. LIC provides four major investment fund options: Equity Fund, Balanced Fund, Secured Fund, and Bond Fund (Index Funds for Plan 873). You have the flexibility to switch your accumulated balances between these funds up to 4 times in each policy year completely free of charge to lock in market gains or mitigate downside risks.

❓ What is the taxability threshold for LIC ULIP returns?

For policies purchased after February 1, 2021, the maturity proceeds of LIC ULIP plans are entirely tax-free under Section 10(10D) only if the aggregate annual premium paid for all active ULIP policies does not exceed ₹2,50,000 in any financial year. If the premium exceeds this threshold, the returns are taxed as Long-Term Capital Gains (LTCG) at 10% (exceeding ₹1.25 Lakhs per year).

❓ What happens in the unfortunate event of the policyholder's demise?

If the life assured passes away before the maturity term, LIC guarantees to pay the nominee the higher of the following benefits: the basic Sum Assured, or the accumulated Fund Value as on the date of death, or 105% of the total premiums paid up to that date, ensuring robust downside protection for your family.

❓ How does Nivesh Plus differ from regular premium ULIPs?

LIC Nivesh Plus (Plan 849) requires only a single one-time lump-sum premium payment (minimum ₹1 Lakh) upon initiation. Regular premium plans like SIIP and Index Plus require ongoing systematic premium payments over the PPT. Single premium options allow the entire capital to begin compounding in market funds immediately without recurring allocation fees.