NIFTY 50 Index Fund
Tracks NIFTY 50 — top 50 NSE-listed large-caps
FMC 0.50%/yr
High risk
Calculators LIC plans ULIP
LIC Index Plus · Plan 873
ULIP linked to NIFTY/SENSEX index funds. Market risk applies.
Unit-linked plan — LIC does not guarantee any maturity amount.
Your fund value at maturity depends entirely on the market performance of the fund(s) you choose.
Past NAV figures are not a predictor of future returns. The scenarios in the calculator below
use IRDAI's mandated 4% and 8% gross return assumptions, plus an illustrative 12% scenario.
What this plan does
LIC Index Plus (Plan 873) is the cleanest ULIP in LIC's portfolio — two index-tracking funds (NIFTY 50 and SENSEX), a PAC that drops to nil after year 5, and an FMC of just 0.50% p.a. That FMC is among the lowest in the entire LIC ULIP universe. The honest trade-off: you're paying for a 5-year lock-in, life cover, and §80C eligibility, none of which a direct Nifty index fund gives you. At a ₹2.5 lakh annual premium cap before losing §10(10D) exemption, Index Plus makes sense for the buyer who genuinely needs insurance + index exposure and wants to stay within the new Finance Act rules.
- Entry age
- 8–60 years
- Min premium
- ₹10,000/yr
- Policy term
- 10–25 years
- Lock-in
- 5 years (mandatory)
- FMC range
- 0.50%– 0.50% /yr
- Mortality charge
- Age-based, deducted monthly from units
Only two index-tracking funds — no debt or balanced option. Pure equity exposure.
Fund options
SENSEX Index Fund
Tracks BSE SENSEX — 30 blue-chip companies
FMC 0.50%/yr
High risk
Run the numbers
Three scenarios (4% / 8% / 12% gross return) shown side-by-side — the spread is the honest answer. All projections are net of charges.
Assumptions
- Age at entry
- 35 yrs
- Annual premium
- ₹50,000/yr
- Policy term
- 20 yrs
- Blended FMC
- 0.50% p.a.
- Fund allocation
- NIFTY 50 Index Fund 100%, SENSEX Index Fund 0%
yrs
₹
Policy term
Fund allocation
Total: 100% ✓ Valid
Blended FMC: 0.50% p.a.
4% gross return/yr
Conservative
(IRDAI mandated low)
₹13,91,371
fund value at maturity
3.05% XIRR
8% gross return/yr
Moderate
(IRDAI mandated high)
₹22,12,669
fund value at maturity
7.07% XIRR
12% gross return/yr
Optimistic
(illustrative)
₹36,00,540
fund value at maturity
11.08% XIRR
Returns are net of all charges (PAC, FMC, mortality, admin). Gross return assumptions are per IRDAI illustration guidelines. Actual returns depend on fund performance.
Total premiums paid
₹10,00,000
₹50,000/yr × 20 yrs
Total charges (moderate scenario)
₹1,41,132
14.1% of total premiums
PAC total
₹4,750
Yr 1: 3% → Yr 5: 1.5%
FMC total (moderate)
₹91,382
At 0.50%/yr blended
Mortality charges total
₹30,600
Age 35→54; rises each year
Admin charges total
₹14,400
₹60/mo × 240 months
Death benefit (while in force)
₹5,00,000 + fund value
Sum assured (approx. 10× premium) paid to nominee in addition to the fund value at the time of death.
Fund Value Projection — 3 Scenarios
Dashed line: cumulative premiums paid (what you've put in). Solid lines: projected fund value net of all charges.
Cumulative premiums Conservative (4%) Moderate (8%) Optimistic (12%)
Year-by-year projection
| Yr | Premium | PAC | Net invested | Mortality | Admin | FMC | Fund val. 4% | Fund val. 8% | Fund val. 12% |
|---|---|---|---|---|---|---|---|---|---|
| 1 | ₹50,000 | ₹1,500 | ₹48,500 | ₹675 | ₹720 | ₹262 | ₹48,793 | ₹50,723 | ₹52,653 |
| 2 | ₹50,000 | ₹1,000 | ₹49,000 | ₹725 | ₹720 | ₹539 | ₹99,751 | ₹1,05,717 | ₹1,11,838 |
| 3 | ₹50,000 | ₹750 | ₹49,250 | ₹775 | ₹720 | ₹837 | ₹1,52,691 | ₹1,65,033 | ₹1,78,021 |
| 4 | ₹50,000 | ₹750 | ₹49,250 | ₹825 | ₹720 | ₹1,157 | ₹2,07,424 | ₹2,28,724 | ₹2,51,726 |
| 5 | ₹50,000 | ₹750 | ₹49,250 | ₹900 | ₹720 | ₹1,501 | ₹2,63,986 | ₹2,97,090 | ₹3,33,787 |
| 6 | ₹50,000 | ₹0 | ₹50,000 | ₹975 | ₹720 | ₹1,874 | ₹3,23,218 | ₹3,71,288 | ₹4,25,998 |
| 7 | ₹50,000 | ₹0 | ₹50,000 | ₹1,063 | ₹720 | ₹2,275 | ₹3,84,423 | ₹4,50,934 | ₹5,28,669 |
| 8 | ₹50,000 | ₹0 | ₹50,000 | ₹1,150 | ₹720 | ₹2,705 | ₹4,47,671 | ₹5,36,434 | ₹6,42,999 |
| 9 | ₹50,000 | ₹0 | ₹50,000 | ₹1,242 | ₹720 | ₹3,167 | ₹5,13,028 | ₹6,28,220 | ₹7,70,316 |
| 10 | ₹50,000 | ₹0 | ₹50,000 | ₹1,333 | ₹720 | ₹3,662 | ₹5,80,568 | ₹7,26,762 | ₹9,12,107 |
| 11 | ₹50,000 | ₹0 | ₹50,000 | ₹1,425 | ₹720 | ₹4,195 | ₹6,50,367 | ₹8,32,563 | ₹10,70,027 |
| 12 | ₹50,000 | ₹0 | ₹50,000 | ₹1,542 | ₹720 | ₹4,766 | ₹7,22,478 | ₹9,46,141 | ₹12,45,897 |
| 13 | ₹50,000 | ₹0 | ₹50,000 | ₹1,658 | ₹720 | ₹5,379 | ₹7,96,982 | ₹10,68,074 | ₹14,41,769 |
| 14 | ₹50,000 | ₹0 | ₹50,000 | ₹1,775 | ₹720 | ₹6,038 | ₹8,73,962 | ₹11,98,988 | ₹16,59,933 |
| 15 | ₹50,000 | ₹0 | ₹50,000 | ₹1,938 | ₹720 | ₹6,745 | ₹9,53,459 | ₹13,39,505 | ₹19,02,891 |
| 16 | ₹50,000 | ₹0 | ₹50,000 | ₹2,100 | ₹720 | ₹7,503 | ₹10,35,559 | ₹14,90,342 | ₹21,73,482 |
| 17 | ₹50,000 | ₹0 | ₹50,000 | ₹2,300 | ₹720 | ₹8,318 | ₹11,20,316 | ₹16,52,231 | ₹24,74,829 |
| 18 | ₹50,000 | ₹0 | ₹50,000 | ₹2,500 | ₹720 | ₹9,192 | ₹12,07,824 | ₹18,25,998 | ₹28,10,449 |
| 19 | ₹50,000 | ₹0 | ₹50,000 | ₹2,733 | ₹720 | ₹10,130 | ₹12,98,142 | ₹20,12,494 | ₹31,84,231 |
| 20 | ₹50,000 | ₹0 | ₹50,000 | ₹2,967 | ₹720 | ₹11,137 | ₹13,91,371 | ₹22,12,669 | ₹36,00,540 |
Rows 1–5 are shaded — these fall within the mandatory 5-year lock-in period. Fund value is not accessible until after year 5.
Where does your premium go? — charges breakdown
Default scenario: age 35, ₹50,000/yr premium, 20-year term. Numbers are computed SSR from the plan brochure — actual charges may vary with age, premium, and fund choice.
| Charge type | When applied | Total over term |
|---|---|---|
| Premium Allocation Charge (PAC) | Deducted upfront from each premium (years 1–5) | ₹4,750 |
| Fund Management Charge (FMC) | Deducted daily from NAV (approximated annually) | ₹92,790 |
| Mortality Charge | Monthly unit cancellation (age-based, rises each year) | ₹6,120 |
| Policy Admin Charge | Fixed ₹60/month, levied monthly | ₹14,400 |
| Total charges over 20 years | ₹1,18,060 (11.8% of total premiums) | |
Charge drag is the primary reason ULIP net XIRRs are lower than the fund's gross return. At 8% gross return, the moderate scenario above yields approximately 7.2% net XIRR after all charges — compare this with a direct index fund at the same gross return, which would deliver closer to 7.5–8%.
Lock-in, withdrawals & discontinuation
- Mandatory lock-in
- 5 years — premiums are locked in; no surrender value paid out before this.
- If you stop premiums before lock-in
- Policy enters LIC's Discontinued Policy Fund, earning 4% p.a.. Market participation resumes only after the 5-year lock-in expires; you may then revive or surrender.
- Partial withdrawal
- Allowed from the 6th policy year onward. Maximum 20% of fund value per year; maximum 2 withdrawals per year.
- Full surrender after lock-in
- Surrender value = fund value at the prevailing NAV on the surrender date. No surrender charges post lock-in for most plans.
Our take
Should you buy Index Plus?
Index Plus is the ULIP you'd design if you had to offer one. Two index-tracking funds, no actively managed equity option, no debt option — so there's no fund manager to second-guess. The 0.50% FMC is lower than almost every actively managed fund in LIC's ULIP suite. The front-loaded PAC (3%/2%/1.5%) disappears after year 5, so long-term holders see the cost structure improve each year. The honest downside: a direct Nifty BeES or index mutual fund charges ~0.10% TER with zero lock-in and no need for life cover to justify the wrapper. Index Plus earns its keep only if (a) you need both insurance and Nifty exposure in one product, (b) your aggregate ULIP premium is ≤ ₹2.5 lakh, and (c) you won't surrender before the 5-year lock-in ends.
- FMC of 0.50% p.a. is among the lowest in the LIC ULIP suite — lower than the bond funds in some competing plans. This matters over a 20-year term.
- PAC (3%/2%/1.5%) fully disappears after year 5. Hold for 15–20 years and the first five years of drag become a smaller fraction of total cost.
- Only two fund options — NIFTY 50 and SENSEX. Both are pure equity; there is no debt or balanced alternative. Full market exposure or nothing.
- 5-year mandatory lock-in: if you stop premiums before year 5, the policy enters the Discontinued Policy Fund at 4% p.a. and market participation pauses.
- At 8% gross return (IRDAI moderate scenario), net XIRR after all charges works out to roughly 6.8–7.2% over a 20-year term — compare this to the 7.5–8% a direct index fund delivers at the same gross return. The gap is the cost of the insurance wrapper.
- Only buy this if your aggregate ULIP premium across all policies is ≤ ₹2.5 lakh. Above that cap (Finance Act 2021), maturity proceeds are taxable as LTCG at 10%.
Asymmetrica isn't an insurance advisor. The opinions above are editorial; charge figures are computed from the plan's own brochure. Read both, then decide.
Tax treatment
- §80C deduction
- Premiums deductible up to ₹1.5 lakh/yr — only under the old tax regime. Forfeited if you switch to the new regime.
- §10(10D) — death benefit
- Always exempt from income tax regardless of premium amount.
- §10(10D) — maturity proceeds
- Exempt only if your aggregate annual premium across all ULIPs is ≤ ₹2.5 lakh (Finance Act 2021, applicable to policies issued on or after 1 Feb 2021). If the aggregate premium exceeds ₹2.5 lakh, maturity proceeds are taxable as LTCG at 10% without indexation.
- Fund switches
- Switching between funds within the ULIP is not a taxable event — no capital gains on switches.
Premiums qualify for §80C deduction up to ₹1.5 lakh per year (old tax regime only). If your aggregate annual premium across all ULIPs exceeds ₹2.5 lakh, maturity proceeds lose §10(10D) exemption and are taxed as LTCG at 10% without indexation (Finance Act 2021, applicable to policies issued on or after 1 Feb 2021). Death benefits are unconditionally exempt. Fund switches between the two funds within the ULIP are not taxable events.
Deep dives
More on Index Plus
Asymmetrica isn't an insurance advisor. Charge and projection figures are computed from published LIC brochures using IRDAI-mandated return assumptions. Verify current rates and eligibility with LIC or a licensed advisor before purchasing.
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