LIC Nivesh Plus Plan 849 is a Unit Linked Insurance Plan (ULIP) that combines the benefits of life insurance with investment opportunities. Launched by Life Insurance Corporation of India (LIC) on March 2, 2020, this plan offers a flexible and efficient way to secure your future while growing your wealth through market-linked returns.

However, LIC officially withdrew this plan on October 14, 2024, making it important for existing policyholders to understand its features, key benefits, and how to use the LIC Nivesh Plus Plan 849 Calculator for managing their investments.

Launch and Withdraw Dates

• Launch Date: March 2, 2020
• Withdrawal Date: October 14, 2024

These dates are important for potential investors and existing policyholders to note, as the plan is no longer available for new subscriptions after October 14, 2024. However, existing policies will continue as per the terms agreed.

What is LIC Nivesh Plus Plan 849?

LIC Nivesh Plus is a single premium, non-participating ULIP. This means you pay the premium only once at the beginning of the policy, and you get life cover plus the potential to grow your money by investing in different types of funds.

Key Features:

• Single premium payment
• Unit-linked, market-related returns
• Life insurance cover throughout the policy term
• Multiple fund options for investment
• Sum assured choices for different needs
• Flexible policy terms ranging from 10 to 25 years

The plan’s flexibility allows policyholders to choose the sum assured and invest their lump sum premium in funds like equity, debt, balanced, or secured funds according to their risk appetite.

Eligibility Criteria

Parameter	Details
Minimum Entry Age	90 Days (completed)
Maximum Entry Age	Option 1: Up to 70 years
	Option 2: Up to 35 years
Policy Term	10 to 25 years
Minimum Premium	Rs. 1,00,000
Maximum Premium	No maximum limit
Sum Assured Options	Option 1: 1.25 times single premium
	Option 2: 10 times single premium

The two sum assured options have different implications, especially relating to tax benefits and premium amounts.

Sum Assured Options and Their Significance

Option 1: Sum Assured = 1.25 times Single Premium

• Suitable for investors who focus more on wealth growth than tax benefits.
• Policy term ranges from 10 to 25 years depending on the age at entry.
• Tax benefits under Section 80C may not be applicable under this option.

Option 2: Sum Assured = 10 times Single Premium

• Designed for those who want to avail tax benefits on premiums and maturity.
• Offers tax benefits under Section 80C for premium paid and Section 10(10D) for maturity proceeds.
• Policy term varies between 10 and 25 years, depending on the age at entry.
• Typically chosen by investors seeking high insurance coverage with investment growth.

Once a sum assured option is selected at the policy inception, it cannot be changed during the policy term.

Benefits of LIC Nivesh Plus Plan

1. Death Benefit

If the life assured dies during the policy term, the nominee receives the higher of the sum assured or the unit fund value. The payment can be made either as a lump sum or in installments, based on the policyholder’s choice.

2. Maturity Benefit

Upon surviving the policy term, the policyholder receives the unit fund value, which reflects the investment’s market value. This amount is not guaranteed as it depends on the fund’s performance.

3. Guaranteed Additions

The plan may provide guaranteed additions, credited to the unit fund based on the Net Asset Value (NAV), after completing specified durations.

4. Partial Withdrawal Facility

Partial withdrawals are allowed after 5 years from the policy start date, subject to company norms. For policies taken for minors, withdrawals are allowed only after the minor attains 18 years of age.

5. Fund Switching

Policyholders can switch between the four available funds (growth, balanced, secured, bond) without tax implications. Switching charges may apply, so it is advised to check policy terms before switching.

6. Optional Rider Benefits

The plan offers an optional Linked Accidental Death Benefit rider, which can be added at the time of policy inception or during the policy term. This rider pays an additional amount in case of accidental death.

How Does the LIC Nivesh Plus Plan 849 Calculator Work?

The LIC Nivesh Plus Plan 849 Calculator is an online or offline tool that helps policyholders estimate:

• The premium amount payable
• Expected maturity benefits based on fund performance
• Death benefits for nominees
• The impact of switching funds or partial withdrawals

It uses inputs like the policyholder’s age, premium amount, fund selection, and policy term to calculate expected returns. The calculator offers transparency and empowers policyholders to make informed decisions.

Steps to Use LIC Nivesh Plus Plan Calculator:

1. Visit the LIC official website or LIC authorized insurance portals.
2. Navigate to the section for premium or return calculators.
3. Fill in personal details like age, gender, and policy term.
4. Enter the single premium amount you intend to invest.
5. Choose the sum assured option (1.25X or 10X premium).
6. Select your preferred fund type(s) or combination.
7. The calculator will display an estimate of your maturity benefits, death benefits, and potential risks.

These projections are indicative and based on historical fund performance and assumptions. Actual returns are subject to market risks.

Understanding Charges and Fees

Like any ULIP, LIC Nivesh Plus Plan 849 has various charges, though generally low compared to similar plans. These include:

• Premium Allocation Charge
• Mortality Charges
• Fund Management Fees
• Switching Charges (for changing fund options)
• Partial Withdrawal Charges
• Policy Discontinuance Charges

These charges are deducted from the fund value or premium and impact the overall returns. Detailed information about fees is available in the plan brochure and LIC website.

Tax Benefits of LIC Nivesh Plus Plan

The tax advantages depend on the sum assured option chosen:

• If Option 2 (10X premium) is chosen, the premium paid is eligible for deduction under Section 80C of the Income Tax Act.
• The maturity proceeds are tax-free under Section 10(10D), provided the premiums do not exceed 10% of the sum assured.
• Death benefits are also tax-free in the hands of nominees.

These tax benefits enhance the appeal of the plan for long-term investors.

Frequently Asked Questions

Conclusion

LIC Nivesh Plus Plan 849 was an innovative ULIP that combined the power of investment with life insurance protection. Though withdrawn since October 14, 2024, understanding this plan’s principles remains useful for current policyholders and those comparing ULIPs in India.

The plan offered:

• Flexibility with single-premium payments and multiple funds.
• Two sum assured options designed to meet both investment and insurance needs.
• Additional benefits like partial withdrawals, fund switching, and optional riders.
• Tax benefits under applicable sections of the Income Tax Act.