Equity Growth Fund
60–100% equity; large and mid-cap stocks
FMC 1.35%/yr
High risk
Calculators LIC plans ULIP
LIC SIIP · Plan 852
Systematic Investment Insurance Plan — regular-premium ULIP.
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 SIIP (Systematic Investment Insurance Plan, Plan 852) is a regular-premium ULIP marketed as 'LIC's SIP'. The front-loaded PAC (8%/5%/3%/2% in years 1–4, nil from year 5) is the most aggressive in LIC's ULIP lineup — your first two years' premiums lose 8% and 5% off the top before any unit is bought. At the 8% gross return scenario, the net XIRR over 20 years works out to roughly 6.0–6.5%, meaning a substantial portion of the gross return is consumed by early-year charge drag. Choose this only if the SIP-style discipline and the insurance wrapper are both genuinely needed.
- Entry age
- 0–65 years
- Min premium
- ₹24,000/yr
- 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
Designed as a monthly SIP — minimum ₹2,000/month. Front-loaded PAC in years 1–4.
Fund options
Balanced Fund
Dynamic 30–70% equity + 30–70% debt allocation
FMC 1.25%/yr
Moderate risk
Bond Fund
Government securities and investment-grade corporates
FMC 0.75%/yr
Low risk
Secured Fund
Short-duration instruments; capital preservation
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
- 35 yrs
- Annual premium
- ₹60,000/yr
- Policy term
- 20 yrs
- Blended FMC
- 1.31% p.a.
- Fund allocation
- Equity Growth Fund 60%, Balanced Fund 40%, Bond Fund 0%, Secured Fund 0%
yrs
₹
Policy term
Fund allocation
Total: 100% ✓ Valid
Blended FMC: 1.31% p.a.
4% gross return/yr
Conservative
(IRDAI mandated low)
₹15,20,386
fund value at maturity
2.20% XIRR
8% gross return/yr
Moderate
(IRDAI mandated high)
₹23,89,518
fund value at maturity
6.18% XIRR
12% gross return/yr
Optimistic
(illustrative)
₹38,46,864
fund value at maturity
10.14% 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
₹12,00,000
₹60,000/yr × 20 yrs
Total charges (moderate scenario)
₹3,24,954
27.1% of total premiums
PAC total
₹10,800
Yr 1: 8% → Yr 4: 2.0%
FMC total (moderate)
₹2,67,834
At 1.31%/yr blended
Mortality charges total
₹36,720
Age 35→54; rises each year
Admin charges total
₹9,600
₹40/mo × 240 months
Death benefit (while in force)
₹6,00,000 + 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 | ₹60,000 | ₹4,800 | ₹55,200 | ₹810 | ₹480 | ₹781 | ₹55,366 | ₹57,545 | ₹59,724 |
| 2 | ₹60,000 | ₹3,000 | ₹57,000 | ₹870 | ₹480 | ₹1,621 | ₹1,13,980 | ₹1,20,738 | ₹1,27,668 |
| 3 | ₹60,000 | ₹1,800 | ₹58,200 | ₹930 | ₹480 | ₹2,532 | ₹1,75,311 | ₹1,89,311 | ₹2,04,036 |
| 4 | ₹60,000 | ₹1,200 | ₹58,800 | ₹990 | ₹480 | ₹3,510 | ₹2,38,816 | ₹2,62,980 | ₹2,89,050 |
| 5 | ₹60,000 | ₹0 | ₹60,000 | ₹1,080 | ₹480 | ₹4,570 | ₹3,05,138 | ₹3,42,689 | ₹3,84,254 |
| 6 | ₹60,000 | ₹0 | ₹60,000 | ₹1,170 | ₹480 | ₹5,697 | ₹3,73,118 | ₹4,27,557 | ₹4,89,397 |
| 7 | ₹60,000 | ₹0 | ₹60,000 | ₹1,275 | ₹480 | ₹6,898 | ₹4,42,787 | ₹5,17,908 | ₹6,05,508 |
| 8 | ₹60,000 | ₹0 | ₹60,000 | ₹1,380 | ₹480 | ₹8,176 | ₹5,14,189 | ₹6,14,105 | ₹7,33,745 |
| 9 | ₹60,000 | ₹0 | ₹60,000 | ₹1,490 | ₹480 | ₹9,537 | ₹5,87,364 | ₹7,16,526 | ₹8,75,379 |
| 10 | ₹60,000 | ₹0 | ₹60,000 | ₹1,600 | ₹480 | ₹10,986 | ₹6,62,359 | ₹8,25,582 | ₹10,31,820 |
| 11 | ₹60,000 | ₹0 | ₹60,000 | ₹1,710 | ₹480 | ₹12,529 | ₹7,39,222 | ₹9,41,709 | ₹12,04,630 |
| 12 | ₹60,000 | ₹0 | ₹60,000 | ₹1,850 | ₹480 | ₹14,172 | ₹8,17,972 | ₹10,65,344 | ₹13,95,500 |
| 13 | ₹60,000 | ₹0 | ₹60,000 | ₹1,990 | ₹480 | ₹15,921 | ₹8,98,659 | ₹11,96,980 | ₹16,06,335 |
| 14 | ₹60,000 | ₹0 | ₹60,000 | ₹2,130 | ₹480 | ₹17,784 | ₹9,81,335 | ₹13,37,145 | ₹18,39,237 |
| 15 | ₹60,000 | ₹0 | ₹60,000 | ₹2,325 | ₹480 | ₹19,767 | ₹10,65,996 | ₹14,86,344 | ₹20,96,475 |
| 16 | ₹60,000 | ₹0 | ₹60,000 | ₹2,520 | ₹480 | ₹21,878 | ₹11,52,695 | ₹16,45,174 | ₹23,80,612 |
| 17 | ₹60,000 | ₹0 | ₹60,000 | ₹2,760 | ₹480 | ₹24,125 | ₹12,41,441 | ₹18,14,223 | ₹26,94,437 |
| 18 | ₹60,000 | ₹0 | ₹60,000 | ₹3,000 | ₹480 | ₹26,517 | ₹13,32,288 | ₹19,94,165 | ₹30,41,076 |
| 19 | ₹60,000 | ₹0 | ₹60,000 | ₹3,280 | ₹480 | ₹29,062 | ₹14,25,251 | ₹21,85,675 | ₹34,23,947 |
| 20 | ₹60,000 | ₹0 | ₹60,000 | ₹3,560 | ₹480 | ₹31,772 | ₹15,20,386 | ₹23,89,518 | ₹38,46,864 |
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, ₹60,000/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 1–4) | ₹10,800 |
| Fund Management Charge (FMC) | Deducted daily from NAV (approximated annually) | ₹2,70,984 |
| Mortality Charge | Monthly unit cancellation (age-based, rises each year) | ₹14,688 |
| Policy Admin Charge | Fixed ₹40/month, levied monthly | ₹9,600 |
| Total charges over 20 years | ₹3,06,072 (25.5% 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 6.3% 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. Max 20% of fund value per year; max 2 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 SIIP?
SIIP is marketed as LIC's answer to mutual fund SIPs, but the comparison is misleading. A direct mutual fund SIP starts investing your full premium on day one; SIIP starts investing only 92% of your year-1 premium (after 8% PAC), only 95% of year-2 (after 5% PAC), and so on for four years. The front-load drag takes approximately 6–8 years to recover against a comparable direct mutual fund. After year 5, PAC drops to nil and the cost structure is purely FMC + mortality + admin — similar to Index Plus but with a higher FMC (equity fund at 1.35%) and more fund options. The minimum ₹24,000/year (₹2,000/month SIP equivalent) is accessible, but this is a long-term commitment. Surrendering before 5 years triggers the Discontinued Policy Fund penalty. If your primary goal is disciplined long-term investing, a mutual fund SIP is cheaper. If you need the insurance component plus a disciplined savings vehicle and can commit to 15–20 years, SIIP can work — just don't model your XIRR on the 8% gross and expect that back net.
- Front-loaded PAC (8%/5%/3%/2%) in years 1–4 is the highest in LIC's ULIP suite. Year-1 charge drag is brutal; the policy needs time to recover.
- PAC drops to nil from year 5 onward. Long-term holders (15–20 years) see the cost impact dilute significantly as the early PAC is amortised over more premiums.
- Four fund options (equity, balanced, bond, secured). The same as Nivesh Plus — more flexibility than Index Plus's two-fund menu.
- Minimum ₹24,000/year (₹2,000/month). This aligns with a monthly SIP discipline but is a regulated insurance contract, not a mutual fund — redemption before year 5 incurs the Discontinued Policy Fund penalty.
- At 8% gross return, 20-year term, net XIRR is roughly 6.0–6.5% — the PAC drag in years 1–4 costs approximately 0.5–0.8 percentage points of XIRR versus a zero-PAC instrument.
- Use this only if (a) you need insurance, (b) you want a SIP-style forced savings vehicle, and (c) you can commit to the full term. A term plan + direct mutual fund SIP beats SIIP on net return for most profiles.
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/yr (old regime). Aggregate ULIP premium cap: if your total ULIP premiums across all policies exceed ₹2.5 lakh/yr, maturity proceeds are taxable as LTCG at 10% without indexation (Finance Act 2021). Death benefits unconditionally exempt. Fund switches not taxable. §80C deduction is forfeited in any year you switch to the new tax regime.
Deep dives
More on SIIP
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.
Last updated · site changelog