LIC Index Plus Plan 2026: Life Insurance Corporation of India (LIC) is promoting its Index Plus Plan as a financial planning option that combines life insurance protection with market-linked investment opportunities. The plan is designed for individuals who want to build long-term savings while maintaining financial protection for their families.

Through its latest promotional message, LIC has encouraged customers to strengthen their financial future by combining investment growth and life insurance coverage.

LIC Index Plus, officially identified as Plan Number 873, is a Unit Linked Insurance Plan (ULIP). It provides life insurance coverage throughout the policy term while investing a portion of the premiums in market-linked funds.

Unlike traditional guaranteed-return insurance policies, the investment value of LIC Index Plus depends on market performance. Therefore, returns are not guaranteed, and policyholders bear the investment risk.

What Is LIC Index Plus Plan 873?

LIC Index Plus is a non-participating, unit-linked, regular-premium individual life insurance plan.

The policy combines two important financial planning components: life insurance protection and long-term investment.

A portion of the premium is allocated towards purchasing units in the selected investment fund after applicable charges.

The value of these units changes according to the performance of the underlying investments.

LIC offers two fund choices under the plan, allowing customers to select an investment strategy according to their financial goals and risk tolerance.

The policy also provides guaranteed additions to the unit fund at specified durations, subject to the applicable conditions.

However, these additions do not guarantee the overall investment return or maturity value.

LIC Index Plus Plan 2026: Key Features

These details are based on LIC's published product information. Customers should refer to the latest applicable brochure for complete conditions.

LIC Index Plus Offers Two Investment Fund Options

One of the important features of LIC Index Plus is the flexibility to choose between two investment funds.

1. Flexi Growth Fund

This fund primarily invests in selected stocks forming part of the NIFTY 100 index.

It provides exposure to a broader group of companies across different sectors of the Indian equity market.

2. Flexi Smart Growth Fund

This option primarily invests in selected stocks associated with the NIFTY 50 index.

The fund provides exposure to major companies represented in the benchmark index.

Both options involve market risk. The performance of the selected fund can fluctuate depending on equity market conditions.

Customers should not assume that investing in an index-oriented fund guarantees positive returns.

How Much Premium Is Required for LIC Index Plus?

LIC's published product information specifies different minimum premiums according to the payment frequency.

The minimum amounts include:

• Monthly premium: ₹2,500 through NACH.
• Quarterly premium: ₹7,500.
• Half-yearly premium: ₹15,000.
• Annual premium: ₹30,000.

For example, a customer choosing the minimum monthly premium would pay ₹30,000 over 12 months.

However, the entire premium is not necessarily invested in market-linked units because applicable charges are deducted.

Actual investment value depends on premium allocation, policy charges and fund performance.

What Life Insurance Benefits Are Available?

LIC Index Plus provides life insurance coverage during the policy term.

The Basic Sum Assured can be linked to the annualised premium according to the policyholder's age and selected option.

LIC's published terms provide for a Basic Sum Assured of seven or ten times the annualised premium for eligible entry ages up to 50 years.

For certain higher entry ages, the applicable multiple is seven times the annualised premium.

The death benefit depends on the policy terms, including the commencement of risk, Basic Sum Assured, fund value and applicable minimum benefit provisions.

Customers should examine the official benefit illustration to understand how their selected coverage would work.

Does LIC Index Plus Provide Guaranteed Returns?

LIC Index Plus offers guaranteed additions to the unit fund at specified policy durations, provided the relevant conditions are satisfied.

These additions are calculated according to the applicable policy provisions and used to purchase additional units.

However, guaranteed additions should not be confused with guaranteed maturity returns.

The final fund value depends on market performance and applicable charges.

If the selected investment fund performs poorly, the maturity value may be lower than expected.

Therefore, LIC Index Plus should be evaluated as a market-linked insurance product rather than a fixed-return savings scheme.

Can Policyholders Withdraw Money Before Maturity?

LIC Index Plus is subject to the standard five-year lock-in requirement applicable to unit-linked insurance products.

Policyholders cannot withdraw their invested money completely or partially during the first five policy years.

After the lock-in period, partial withdrawals may be permitted under specified conditions.

The policy also contains provisions governing discontinuance, surrender and revival.

Customers should understand these rules before purchasing because ULIPs are generally intended for long-term financial commitments.

Who Should Consider LIC Index Plus?

LIC Index Plus may be relevant for individuals seeking a combination of life insurance and equity-linked long-term savings.

It may appeal to customers who are comfortable with market fluctuations and can continue paying premiums for the selected policy duration.

However, customers who primarily need substantial life insurance protection at a relatively low cost may also compare pure term insurance policies.

Similarly, investors focused mainly on wealth creation may wish to compare the costs and flexibility of separate investment products.

The suitability of LIC Index Plus depends on personal financial goals, risk tolerance, insurance needs and investment horizon.

How to Apply for LIC Index Plus Online

Interested customers can explore the plan through LIC's official website.

Step 1: Visit the official LIC website at www.licindia.in.

Step 2: Navigate to the Unit Linked Insurance Plans section.

Step 3: Select LIC Index Plus, Plan Number 873.

Step 4: Review the current sales brochure, eligibility conditions and benefit illustration.

Step 5: Choose the appropriate premium amount, policy duration and available investment fund.

Step 6: Complete the application and required verification through LIC's authorised channels.

Customers can also contact an authorised LIC agent or branch for assistance.

Important Things to Check Before Buying

Before purchasing LIC Index Plus, customers should examine the premium allocation charges, fund management charges, mortality charges and other applicable expenses.

They should also understand the five-year lock-in period, surrender conditions, investment risks and available death benefits.

Tax benefits, if applicable, depend on prevailing income-tax provisions and the policyholder's circumstances.

LIC's Index Plus Plan offers an opportunity to combine insurance protection with market-linked investment growth, but it does not eliminate investment risk.

Important Reminder: LIC Index Plus is a ULIP, and its maturity value is not guaranteed. Customers should compare the policy's charges, life cover and investment features with alternative financial products before making a long-term commitment.

Source Credit: Life Insurance Corporation of India (LIC), Index Plus Promotional Advisory; LIC Official Website — https://licindia.in; LIC Index Plus Plan 873 Product Information — https://licindia.in/lic-s-index-plus-873-512l354v01; LIC Index Plus Official Sales Brochure and Product Documentation.

Verification: LIC's official website lists Index Plus among its unit-linked insurance plans, and its product documentation confirms the market-linked structure, fund choices and five-year lock-in.