Last Updated: 13 Oct 2025 | By Keyur Tirgar, LIC Agent Code: 04699-102
Important Update: LIC Nivesh Plus (Plan No. 849) was withdrawn on October 14, 2024 and is no longer available for new purchases. However, if you're an existing policyholder or considering similar ULIP options, this comprehensive guide will help you understand what made this plan popular and what alternatives are now available.
What Was LIC Nivesh Plus?
LIC Nivesh Plus was a Unit Linked Insurance Plan (ULIP) offered by Life Insurance Corporation of India that combined life insurance protection with market-linked investment opportunities. This plan allowed policyholders to invest their premiums in various funds based on their risk appetite, providing an opportunity for capital appreciation over time.
As a single premium ULIP, it required only one-time payment, making it convenient for investors who preferred lump sum investments over regular premium payments.
Plan Details at a Glance
- Plan Number: 849
- UIN: 512L317V01
- Plan Type: Unit Linked Insurance Plan (ULIP)
- Premium Payment: Single Premium
- Status: Withdrawn from October 14, 2024
Key Features of LIC Nivesh Plus
1. Unit Linked Insurance Plan Structure
LIC Nivesh Plus offered 4 types of investment funds and allowed the policyholder to choose as per their convenience and risk appetite. The plan invested a portion of your premium in market-linked funds while providing life insurance coverage simultaneously.
2. Flexible Sum Assured
One of the standout features was that the policyholder could select the sum assured when purchasing the LIC policy, allowing customization based on individual protection needs and investment goals.
3. Guaranteed Additions
The plan offered a series of Guaranteed Additions that added stability and security to your fund value over time. These additions ensured that your investment continued to grow, regardless of market fluctuations. This feature distinguished LIC Nivesh Plus from many other ULIPs that offered purely market-linked returns.
4. Single Premium Convenience
Unlike regular premium plans requiring annual or monthly payments, LIC Nivesh Plus was a single premium plan. You paid once and secured your investment and insurance benefits for the entire policy term.
5. Life Insurance Coverage
Throughout the policy term, the plan provided life insurance protection. In case of the policyholder's unfortunate demise, the nominee would receive a death benefit, ensuring financial security for the family.
6. Tax Benefits
Like other life insurance products, LIC Nivesh Plus offered tax benefits:
- Premium payment eligible for deduction under Section 80C (up to ₹1.5 lakh)
- Death benefits tax-free under Section 10(10D)
- Maturity proceeds potentially tax-free (subject to conditions)
Four Investment Fund Options
LIC Nivesh Plus offered 4 types of investment funds to cater to different risk appetites and investment objectives:
1. Growth Fund
- Risk Level: High
- Investment Focus: Primarily equity-oriented
- Suitable For: Aggressive investors with long-term horizon
- Potential: Higher returns but higher volatility
- Ideal Age Group: Young investors (25-40 years)
2. Balanced Fund
- Risk Level: Moderate
- Investment Focus: Mix of equity and debt instruments
- Suitable For: Moderate risk-takers seeking balanced growth
- Potential: Moderate returns with controlled risk
- Ideal Age Group: Middle-aged investors (35-50 years)
3. Secured Fund
- Risk Level: Low to Moderate
- Investment Focus: Debt-oriented investments
- Suitable For: Conservative investors prioritizing capital protection
- Potential: Stable, predictable returns
- Ideal Age Group: Older investors (45-60 years)
4. Bond Fund
- Risk Level: Low
- Investment Focus: Government securities and high-grade bonds
- Suitable For: Risk-averse investors seeking stable income
- Potential: Lowest but most stable returns
- Ideal Age Group: Senior investors or those nearing retirement
Fund Switching: Policyholders had the flexibility to switch between these funds based on market conditions and changing risk appetites, typically with a limited number of free switches per year.
Eligibility Criteria
Understanding the eligibility requirements helps assess if this plan (or similar alternatives) would be suitable:
Entry Age
- Minimum: 18 years (completed)
- Maximum: 65 years
Policy Term Options
- Flexible policy terms available
- Typically ranging from 10 to 25 years
- Dependent on entry age and insurer guidelines
Sum Assured
- Minimum sum assured requirements applied
- Could be chosen based on investment capacity and protection needs
- Typically needed to be at least 10 times the single premium paid
Premium Payment
- Single premium payment mode
- Minimum premium amounts set by LIC
- No recurring payment obligations
Benefits of LIC Nivesh Plus
1. Death Benefit
In the unfortunate event of the policyholder's death during the policy term:
- Benefit Paid: Higher of Sum Assured or Fund Value
- Payment: Lump sum to nominee
- Taxation: Tax-free under Section 10(10D)
- Additional: Guaranteed additions (if applicable) also paid
2. Maturity Benefit
On survival till the end of policy term:
- Benefit: Total fund value accumulated
- Components: Unit fund value + Guaranteed additions
- Flexibility: Could be received as lump sum
- Taxation: Subject to prevailing tax laws and conditions
3. Partial Withdrawal Facility
Partial withdrawals could be made after 5 years on policy commencement, subject to certain factors, such as the policyholder's age and other considerations determined by the company.
Withdrawal Limits:
- From Policy Year 21-25, maximum of 30% of the fund value could be withdrawn
- Progressive withdrawal limits in different policy years
- After a partial withdrawal, the Basic Sum Assured would be reduced by the amount withdrawn
4. Surrender Value
Before 5-Year Lock-in: On surrender of the policy within the 5 year lock-in, unit fund value minus the discontinuation charge was paid.
After 5-Year Lock-in: On surrender of policy after the 5 year lock-in period, entire unit value was paid.
5. Loyalty Additions
Long-term policyholders benefited from loyalty additions that boosted the overall fund value, rewarding commitment to the policy.
6. Free Look Period
A free look period of 15 days (in case of offline purchase) or 30 days (for online purchase) was provided, allowing policyholders to review terms and return the policy if not satisfied.
Policy Charges and Costs
Understanding charges is crucial in ULIPs as they impact overall returns:
1. Premium Allocation Charge
- Deducted from the premium before investing
- Higher in initial years, reduces over time
- Typically 2-6% depending on policy year
2. Policy Administration Charge
- Monthly charge for policy maintenance
- Usually a fixed amount or percentage
- Continues throughout policy term
3. Fund Management Charge
- Annual charge on fund value
- Compensates for fund management services
- Typically 1-1.5% per annum
4. Mortality Charges
- Cost of providing life insurance cover
- Deducted monthly from fund value
- Increases with age
5. Switching Charge
- Free switches available (typically 4-6 per year)
- Charges apply for additional switches
- Encourage strategic, not frequent switching
6. Discontinuance Charge
- Applied if policy surrendered before 5 years
- Reduces surrender value significantly
- Encourages long-term holding
7. Partial Withdrawal Charge
- May apply on partial withdrawals
- Varies by policy year and amount
- Designed to discourage frequent withdrawals
Who Should Have Considered LIC Nivesh Plus?
While the plan is no longer available, understanding its target audience helps identify who benefits from similar ULIP products:
Ideal Candidates
1. Lump Sum Investors
- Those with surplus funds for one-time investment
- Bonus recipients, retirement corpus, inheritance money
- Prefer single payment over recurring commitments
2. Market-Savvy Individuals
- Understanding of equity and debt markets
- Willing to accept market-linked returns
- Can make informed fund switching decisions
3. Long-Term Planners
- Investment horizon of 10+ years
- Can stay invested through market cycles
- Not needing funds in short term
4. Tax-Conscious Investors
- Seeking Section 80C deductions
- Want tax-efficient wealth accumulation
- Planning for tax-free maturity benefits
5. LIC Loyalists
- Trust in LIC's brand and reliability
- Prefer government-backed institutions
- Value guaranteed additions feature
Not Suitable For
1. Risk-Averse Investors
- Cannot tolerate market volatility
- Prefer 100% guaranteed returns
- Need complete capital protection
2. Short-Term Investors
- Need funds within 5 years
- Cannot commit to lock-in period
- Require immediate liquidity
3. Those Needing Regular Income
- Require monthly or annual payouts
- Prefer pension or annuity plans
- Need consistent cash flow
Why Was LIC Nivesh Plus Withdrawn?
The plan was withdrawn on October 14, 2024. While LIC hasn't officially disclosed specific reasons, insurance companies typically withdraw products due to:
Common Reasons for Product Withdrawal
1. Regulatory Changes
- IRDAI guideline modifications
- New compliance requirements
- Industry standard updates
2. Product Performance
- Lower than expected sales
- Not meeting profitability targets
- Competition from newer products
3. Product Evolution
- Launch of improved alternatives
- Better features in new plans
- Market demand for different structures
4. Market Conditions
- Changing economic environment
- Shift in investor preferences
- Portfolio rationalization
Impact on Existing Policyholders
Important: If you already hold LIC Nivesh Plus policy:
- Your policy remains valid and active
- All terms and conditions continue as per policy document
- Maturity benefits will be paid as promised
- Claims will be honored normally
- NAV continues to be published
- No action required from your side
Alternative ULIP Plans After Withdrawal
Since LIC Nivesh Plus is no longer available, consider these alternatives:
LIC ULIP Alternatives
1. Other LIC ULIP Plans Check LIC's current unit-linked offerings that provide similar benefits of investment and insurance.
2. Traditional LIC Plans with Investment
- LIC Jeevan Umang
- LIC New Endowment Plan
- Plans offering guaranteed returns
Private Insurer ULIP Options
Leading ULIP Plans:
- HDFC Life Click 2 Invest
- ICICI Prudential Signature
- SBI Life Smart Wealth Builder
- Max Life Fast Track Solution
- Bajaj Allianz Future Gain
What to Look For in Alternatives
When choosing a ULIP alternative to LIC Nivesh Plus:
✓ Fund Options: Multiple fund choices (equity, balanced, debt)
✓ Flexibility: Fund switching, premium redirection
✓ Charges: Lower charges mean better returns
✓ Track Record: Fund performance history
✓ Lock-in Period: Standard 5 years as per regulation
✓ Partial Withdrawal: Availability after lock-in
✓ Sum Assured: Adequate life cover (minimum 10x premium)
✓ Tax Benefits: Section 80C and 10(10D) benefits
✓ Loyalty Additions: Bonus for long-term holding
Comparison: ULIP vs Traditional Insurance Plans
Understanding the difference helps make informed choices:
| Feature | ULIP (like Nivesh Plus) | Traditional Plans |
|---|---|---|
| Returns | Market-linked | Guaranteed |
| Risk | Moderate to High | Low |
| Transparency | High (daily NAV) | Moderate |
| Flexibility | High (fund switching) | Low |
| Charges | Multiple charges | Lower charges |
| Lock-in | 5 years | Till maturity |
| Investment Control | Yes | No |
| Best For | Growth seekers | Safety seekers |
Tax Implications of LIC Nivesh Plus
Understanding tax treatment is crucial for financial planning:
Tax Benefits
1. Section 80C Deduction
- Premium paid eligible for deduction
- Up to ₹1.5 lakh limit
- Available in the year of premium payment (single premium plans)
2. Section 10(10D) - Maturity Benefit
- Maturity proceeds generally tax-free
- Condition: Premium ≤ 10% of sum assured (policies issued before April 1, 2012)
- Condition: Premium ≤ ₹2.5 lakh per year (policies issued after February 1, 2021)
3. Death Benefit
- Always tax-free under Section 10(10D)
- No conditions or limitations
- Nominee receives full amount without tax deduction
Tax on ULIP Returns (Post Budget 2021)
Important Change: For ULIP policies with annual premium exceeding ₹2.5 lakh (issued after February 1, 2021):
- Maturity proceeds taxable as capital gains
- Long-term capital gains tax applicable
- LIC Nivesh Plus (single premium) holders need to check if their premium exceeded this limit
Key Considerations Before Investing in Any ULIP
Learning from LIC Nivesh Plus can guide future ULIP investments:
1. Understand Your Risk Appetite
- ULIPs carry market risk
- Fund value can fluctuate
- Long-term commitment required
2. Evaluate Charges Carefully
- Higher charges reduce returns
- Compare across different plans
- Understand impact on final corpus
3. Focus on Long-Term
- Minimum 10-15 year horizon recommended
- Short-term exits reduce returns
- Lock-in period is 5 years
4. Don't Mix Insurance and Investment
- Some experts suggest keeping them separate
- Term insurance + mutual funds may be cheaper
- ULIPs offer convenience of single product
5. Monitor Performance Regularly
- Review NAV and fund performance
- Make informed switching decisions
- Don't react to short-term volatility
6. Check Claim Settlement Ratio
- LIC has highest claim settlement ratio (98%+)
- Important for life insurance component
- Affects family's financial security
Expert Opinion: Was LIC Nivesh Plus Worth It?
Strengths
1. LIC Brand Trust
- Government-backed security
- Highest claim settlement ratio
- Extensive network across India
2. Guaranteed Additions
- Unique feature among ULIPs
- Provided downside protection
- Balanced market risk
3. Single Premium Convenience
- No recurring payment hassles
- Suitable for lump sum investors
- One-time commitment
4. Flexible Fund Options
- Four different funds
- Suitable for various risk profiles
- Fund switching allowed
Weaknesses
1. Higher Charges
- ULIP charges can be significant
- Impact overall returns
- Better alternatives available
2. Complexity
- ULIPs are complex products
- Need understanding of markets
- Switching requires knowledge
3. Lock-in Period
- 5-year mandatory lock-in
- Limited liquidity
- Surrender charges if exited early
4. Market Risk
- Returns not guaranteed (except additions)
- Fund value can decline
- Suitable only for risk-takers
What Should Existing Policyholders Do?
If you currently hold LIC Nivesh Plus policy:
Continue the Policy
- Policy remains valid despite withdrawal
- All benefits will be honored
- Maturity amount will be paid as per terms
Monitor Fund Performance
- Check NAV regularly on LIC website
- Review fund allocation
- Consider fund switching if needed (within free limits)
Don't Surrender Prematurely
- Surrender charges reduce value significantly
- Stay invested till maturity for best returns
- Only surrender if absolutely necessary
Update Nominee Details
- Ensure nominee information is current
- Update after major life events (marriage, childbirth)
- Keep contact details updated with LIC
Plan for Maturity
- Note your policy maturity date
- Plan for utilization of maturity proceeds
- Consider reinvestment options in advance
How to Check LIC Nivesh Plus NAV
For existing policyholders wanting to track fund performance:
Online Method
- Visit official LIC website: licindia.in
- Navigate to "Plan NAV" section
- Select "LIC Nivesh Plus"
- Choose your fund type
- View current NAV and historical performance
Calculate Your Fund Value
Formula:
Current Fund Value = Number of Units × Current NAV
Your number of units was allocated based on NAV at the time of premium payment minus charges.
Frequently Asked Questions
Q1: Can I still buy LIC Nivesh Plus?
A: No, the plan was withdrawn on October 14, 2024, and is no longer available for new purchases.
Q2: What happens to my existing policy?
A: Your existing policy remains valid with all terms and conditions. Maturity benefits will be paid as promised.
Q3: Can I surrender my LIC Nivesh Plus policy?
A: Yes, but surrender value depends on policy year. After 5 years, you get full fund value. Before that, discontinuance charges apply.
Q4: Are partial withdrawals allowed?
A: Yes, partial withdrawals are permitted after 5 years, subject to conditions and limits.
Q5: What are the alternatives to LIC Nivesh Plus?
A: Consider other LIC ULIP plans or ULIP offerings from private insurers like HDFC Life, ICICI Prudential, SBI Life, etc.
Conclusion
LIC Nivesh Plus was a unique ULIP that combined market-linked returns with the trust and reliability of LIC. Its Guaranteed Additions feature provided stability and security to fund value over time, ensuring investment growth regardless of market fluctuations.
While the plan was withdrawn on October 14, 2024, existing policyholders can continue to enjoy all benefits as per their policy terms. For those seeking similar investment-cum-insurance solutions, numerous ULIP alternatives are available from LIC and other insurers.
Key Takeaways
✓ LIC Nivesh Plus combined insurance with market-linked investment
✓ Offered 4 fund options for different risk appetites
✓ Featured unique guaranteed additions for stability
✓ Withdrawn in October 2024 but existing policies remain valid
✓ Several alternative ULIPs available in the market
✓ Always evaluate charges, returns, and your risk appetite before investing
Need Expert Advice on Insurance Planning?
Choosing the right insurance and investment plan requires careful analysis of your financial situation, goals, and risk appetite. As an IRDA certified insurance adviser and LIC authorized agent, I can help you:
- Compare ULIP alternatives to LIC Nivesh Plus
- Evaluate your insurance needs
- Choose between ULIPs and traditional plans
- Understand tax implications
- Plan for long-term wealth creation
Contact Keyur Tirgar
📞 Phone/WhatsApp: +91 9784309640
📧 Email: tirgarkuriya@gmail.com
🏢 LIC Agent Code: 04699-102
📍 Serving: All Over Rajasthan
Schedule a FREE consultation today!
Disclaimer: This article is for informational purposes only and does not constitute financial advice. LIC Nivesh Plus has been withdrawn and is not available for new purchases. Insurance products are subject to terms and conditions of respective insurance companies. ULIPs are subject to market risks. Please read all scheme-related documents carefully before investing. For personalized advice, consult a certified insurance adviser.
Last Updated: 13 Oct 2025
Article Word Count: 3,247 words
Reading Time: 15-18 minutes
