LIC Index Plus vs LIC Nivesh Plus
|
Feature |
LIC Index Plus |
LIC Nivesh Plus |
|
Type |
ULIP (Unit Linked Insurance Plan) – Regular Premium |
ULIP – Single Premium |
|
Premium Payment |
Regular (Yearly, Half-Yearly, Quarterly, Monthly) |
One-time, Lump Sum |
|
Investment Options |
Only Index Fund (linked to Nifty/Sensex
performance) |
4 Fund Options: Bond Fund (low risk), Secured Fund (medium
risk), Balanced Fund (medium-high risk), Growth Fund (high risk) |
|
Policy Term |
10 to 25 years |
10 to 25 years |
|
Risk Profile |
Market-linked (directly follows stock index) |
Varies – You can choose based on risk appetite |
|
Liquidity |
Partial withdrawal allowed after 5 years |
Partial withdrawal allowed after 5 years |
|
Insurance Cover |
Sum Assured = 7 times Annual Premium |
Sum Assured = 1.25 × Single Premium (can choose higher up
to 10 times) |
|
Tax Benefits |
Eligible under Sec 80C (premium) & 10(10D)
(maturity/death benefit) |
Eligible under Sec 80C & 10(10D) |
|
Target Audience |
Salaried / business people who prefer regular savings +
stock market growth |
Investors with lump sum money (retirees, NRIs,
business owners) who want both insurance + investment |
|
Return Expectation |
Linked to index performance (long-term equity-like growth) |
Depends on chosen fund – safe option (Bond) or aggressive
(Growth) |
👥 Which Plan is Suitable
for Whom?
✅ LIC Index Plus
- Best
for:
- Young
professionals (age 20–40) who want long-term wealth creation.
- People
who prefer systematic investment habit (like SIP in mutual funds).
- Why:
- Regular
premiums are easier for salaried people.
- Exposure
to equity index gives inflation-beating growth in the long run.
✅ LIC Nivesh Plus
- Best
for:
- People
with lump sum money (age 35–55).
- Retirees
with retirement corpus looking for market-linked growth + life cover.
- NRIs
or business owners who prefer one-time investment.
- Why:
- No
burden of yearly premium.
- Flexibility
to choose fund type (safe or aggressive).
🎁 Key Benefits (Common to
Both)
- Dual
benefit: Insurance + Investment.
- Tax
savings under 80C & 10(10D).
- Partial
withdrawals after 5 years for emergencies.
- Transparent
fund value (you can track NAV like mutual funds).
- Option
to switch funds (only in Nivesh Plus, not in Index Plus).
👉 Simple Advice:
- If
you are young and earning monthly → Index Plus (discipline + equity
growth).
- If
you have one-time money or don’t want yearly premium stress → Nivesh
Plus.
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