Equity Growth Fund
60–100% equity (large/mid-cap); rest in money market
FMC 1.35%/yr
High risk
Calculators LIC plans ULIP
LIC Nivesh Plus · Plan 849
Single-premium ULIP with multiple fund choices.
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 Nivesh Plus (Plan 849) is a single-premium ULIP — one upfront payment, four fund options (equity, balanced, bond, secured), no annual premium obligation. The 3% PAC is charged once at inception; FMC ranges from 0.50% (secured) to 1.35% (equity). Useful for deploying a lump sum from NPS maturity, EPFO withdrawal, or an inheritance into a tax-wrapped market-linked instrument. The ₹2.5 lakh premium limit for §10(10D) exemption is easily crossed for lump sums, so check your aggregate ULIP portfolio before buying.
- Entry age
- 0–65 years
- Min premium
- ₹1,00,000/single pay
- Policy term
- 10–25 years
- Lock-in
- 5 years (mandatory)
- FMC range
- 0.50%– 1.35% /yr
- Mortality charge
- Age-based, deducted monthly from units
Single-premium plan — full amount paid upfront. No further premium obligations.
Fund options
Balanced Fund
30–70% equity + 30–70% debt; dynamic allocation
FMC 1.25%/yr
Moderate risk
Bond Fund
Government securities and corporate bonds; nil equity
FMC 0.75%/yr
Low risk
Secured Fund
Short-duration G-Secs and money market; capital-preservation focus
FMC 0.50%/yr
Low 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
- 40 yrs
- Annual premium
- ₹1,00,000 (single)
- Policy term
- 15 yrs
- Blended FMC
- 1.30% p.a.
- Fund allocation
- Equity Growth Fund 50%, Balanced Fund 50%, Bond Fund 0%, Secured Fund 0%
yrs
₹
Policy term
Fund allocation
Total: 100% ✓ Valid
Blended FMC: 1.30% p.a.
4% gross return/yr
Conservative
(IRDAI mandated low)
₹1,22,742
fund value at maturity
1.38% XIRR
8% gross return/yr
Moderate
(IRDAI mandated high)
₹2,25,445
fund value at maturity
5.57% XIRR
12% gross return/yr
Optimistic
(illustrative)
₹3,99,652
fund value at maturity
9.68% 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
₹1,00,000
Single payment
Total charges (moderate scenario)
₹51,535
51.5% of total premiums
PAC total
₹3,000
Yr 1: 3% → Yr 1: 3.0%
FMC total (moderate)
₹31,060
At 1.30%/yr blended
Mortality charges total
₹6,675
Age 40→54; rises each year
Admin charges total
₹10,800
₹60/mo × 180 months
Death benefit (while in force)
₹1,25,000 + fund value
Sum assured (approx. 1.25× 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 | ₹1,00,000 | ₹3,000 | ₹97,000 | ₹244 | ₹720 | ₹1,362 | ₹98,605 | ₹1,02,434 | ₹1,06,264 |
| 2 | ₹0 | ₹0 | ₹0 | ₹266 | ₹720 | ₹1,438 | ₹1,00,230 | ₹1,08,205 | ₹1,16,483 |
| 3 | ₹0 | ₹0 | ₹0 | ₹288 | ₹720 | ₹1,519 | ₹1,01,877 | ₹1,14,335 | ₹1,27,757 |
| 4 | ₹0 | ₹0 | ₹0 | ₹310 | ₹720 | ₹1,605 | ₹1,03,544 | ₹1,20,846 | ₹1,40,198 |
| 5 | ₹0 | ₹0 | ₹0 | ₹333 | ₹720 | ₹1,697 | ₹1,05,233 | ₹1,27,764 | ₹1,53,927 |
| 6 | ₹0 | ₹0 | ₹0 | ₹356 | ₹720 | ₹1,794 | ₹1,06,943 | ₹1,35,115 | ₹1,69,080 |
| 7 | ₹0 | ₹0 | ₹0 | ₹385 | ₹720 | ₹1,897 | ₹1,08,669 | ₹1,42,922 | ₹1,85,803 |
| 8 | ₹0 | ₹0 | ₹0 | ₹415 | ₹720 | ₹2,007 | ₹1,10,412 | ₹1,51,214 | ₹2,04,259 |
| 9 | ₹0 | ₹0 | ₹0 | ₹444 | ₹720 | ₹2,123 | ₹1,12,172 | ₹1,60,025 | ₹2,24,633 |
| 10 | ₹0 | ₹0 | ₹0 | ₹484 | ₹720 | ₹2,247 | ₹1,13,938 | ₹1,69,375 | ₹2,47,114 |
| 11 | ₹0 | ₹0 | ₹0 | ₹525 | ₹720 | ₹2,378 | ₹1,15,710 | ₹1,79,302 | ₹2,71,924 |
| 12 | ₹0 | ₹0 | ₹0 | ₹575 | ₹720 | ₹2,517 | ₹1,17,479 | ₹1,89,834 | ₹2,99,301 |
| 13 | ₹0 | ₹0 | ₹0 | ₹625 | ₹720 | ₹2,665 | ₹1,19,245 | ₹2,01,011 | ₹3,29,514 |
| 14 | ₹0 | ₹0 | ₹0 | ₹683 | ₹720 | ₹2,822 | ₹1,21,000 | ₹2,12,866 | ₹3,62,855 |
| 15 | ₹0 | ₹0 | ₹0 | ₹742 | ₹720 | ₹2,989 | ₹1,22,742 | ₹2,25,445 | ₹3,99,652 |
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 40, ₹1,00,000/yr premium, 15-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 1–1) | ₹3,000 |
| Fund Management Charge (FMC) | Deducted daily from NAV (approximated annually) | ₹31,060 |
| Mortality Charge | Monthly unit cancellation (age-based, rises each year) | ₹6,675 |
| Policy Admin Charge | Fixed ₹60/month, levied monthly | ₹10,800 |
| Total charges over 15 years | ₹51,535 (51.5% 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 5.6% 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. Maximum 20% of fund value 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 Nivesh Plus?
Nivesh Plus is built for the person who received a lump sum and wants to put it to work without committing to annual premium payments. One premium, pick a fund mix, wait out the 5-year lock-in, and the policy runs to term. The fund menu is broader than Index Plus — equity, balanced, bond, and secured — giving you the option to take less risk if the lump sum represents capital you can't afford to lose. The math is simpler than regular-premium ULIPs: a single 3% PAC upfront, then FMC every year. The CAGR from a lump-sum ULIP at 8% gross is meaningfully lower than 8% once FMC and charges are extracted. The honest comparison: a direct balanced fund or debt fund has no PAC, lower TER (~0.5–1%), zero lock-in, and no mortality charge. Nivesh Plus earns its keep only if the tax wrapper (§80C + §10(10D) exemption under the ₹2.5L cap) is worth the cost to you.
- Single premium — no annual payment obligation. The entire investment goes in at inception (minus 3% PAC).
- Four fund options including bond and secured, making this the most conservative ULIP option LIC offers for lump-sum investors who need partial capital protection.
- FMC varies by fund: secured/bond at 0.50–0.75%, balanced at 1.25%, equity at 1.35%. Choose carefully — the difference compounds significantly over 15–20 years.
- Minimum ₹1 lakh single premium. At ₹1 lakh, your aggregate ULIP premium for the year is ₹1 lakh — comfortably within the ₹2.5L Finance Act threshold. At ₹5L+, check your other ULIPs before buying.
- CAGR formula applies: net return = (fund value / single premium)^(1/term) − 1. At 8% gross, 20-year term, equity fund, net CAGR is roughly 6.0–6.5% after FMC and charges.
- Partial withdrawal allowed from year 6 — max 20% of fund value per year. Useful in a genuine emergency; avoid using it for routine needs (it permanently reduces the compounding base).
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.
The single premium qualifies for §80C deduction up to ₹1.5 lakh in the year paid (old tax regime only). If the premium exceeds ₹2.5 lakh (Finance Act 2021 aggregate cap), maturity proceeds are taxable as LTCG at 10% without indexation. Death benefit is always exempt. Fund switches are not taxable. Note: this threshold applies to your aggregate annual ULIP premium across all policies — if you bought other ULIPs in the same year, add those premiums before comparing to the ₹2.5L cap.
Deep dives
More on Nivesh 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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