LIC Index Plus Plan 873 Calculator: Fund Value, Charges and Benefits Explained

What is LIC Index Plus Plan 873?

LIC Index Plus (Plan 873, UIN 512L354V01) is a unit-linked insurance plan that LIC launched on 5 February 2024. You pay a regular premium; after charges, it buys units in an equity fund that holds stocks from the NIFTY 100 or NIFTY 50 index. At maturity you receive the value of those units. If the life assured dies during the term, the family gets the higher of the life cover or the fund value.

It is a non-participating plan, so there are no bonuses. What you get depends on market returns, the charges deducted and a few guaranteed additions credited to the fund along the way.

LIC Index Plus at a glance

Feature	Details
Plan number / UIN	873 / 512L354V01
Type	Unit-linked, regular premium, non-par
Entry age	90 days to 50 years (10× cover) or 60 years (7× cover)
Policy term	10 to 25 years (15 to 25 if premium is below ₹48,000)
Premium paying term	Same as the policy term
Minimum premium	₹30,000 a year (₹15,000 half-yearly, ₹7,500 quarterly, ₹2,500 monthly NACH)
Basic sum assured	7× or 10× the annualised premium
Maturity age	18 minimum; 75 (10×) or 85 (7×) maximum
Funds	Flexi Growth (NIFTY 100), Flexi Smart Growth (NIFTY 50)
Lock-in	5 years
Rider	LIC’s Linked Accidental Death Benefit Rider

Charges you should know

ULIP returns are always net of charges, so it pays to know them:

Charge	Agent (offline)	Online
Premium allocation, year 1	8%	3%
Premium allocation, years 2–5	5.5%	2%
Premium allocation, year 6 onwards	4%	1.5%
Fund management	1.35% a year	1.35% a year
Policy administration	Nil for 5 years; then the lower of 3.25% of AP ÷ 12 or ₹125 a month, rising 5% a year, capped at ₹500 a month	Same

The 1.35% fund management charge applies to both Flexi Growth and Flexi Smart Growth; money in the discontinued policy fund is charged 0.5% a year. A mortality charge is also taken each month on the sum at risk, using LIC’s age-wise table: for example ₹1.26 per ₹1,000 a year at age 25, ₹1.62 at 35, ₹3.48 at 45, ₹5.99 at 50 and ₹15.07 at 60. All mortality charges are refunded at maturity if every premium has been paid. Buying online saves a meaningful amount: in our calculator, ₹1 lakh a year for 15 years at 8% grows to about ₹25,51,806 online against ₹24,71,521 through an agent, roughly ₹80,000 more.

How the calculator estimates your fund value

The calculator follows the charges and method in LIC’s published sales brochure and reproduces the brochure’s sample benefit illustration. For example, at age 30 with ₹50,000 paid half-yearly (₹1 lakh a year) for 25 years through an agent and a ₹10 lakh basic sum assured, the brochure shows a maturity value of ₹34,14,179 at 4% and ₹59,71,827 at 8% (including the mortality refund), and the calculator gives the same. It runs the policy month by month:

1. Deducts the premium allocation charge and invests the rest.
2. Deducts the mortality charge on the sum at risk and, from year 6, the policy administration charge.
3. Grows the fund at your chosen return minus 1.35% fund management charge.
4. Adds guaranteed additions at the end of years 6, 10, 15, 20 and 25.
5. At maturity, adds back the mortality charges deducted.

Worked example (agent channel): a 30-year-old pays ₹1,00,000 a year for 15 years and picks 10× cover, so the basic sum assured is ₹10,00,000. Total premium paid is ₹15,00,000. At an 8% gross return the projected maturity value is about ₹24,71,521, an IRR of about 6.0%. At 4% it is about ₹17,80,930. Guaranteed additions contribute ₹35,000 and the mortality refund ₹5,678.

Online example: the same person paying ₹50,000 a year online for 20 years could reach about ₹20,30,118 at 8% (IRR about 6.4%), against ₹10,00,000 paid.

Tip: IRDAI requires benefit illustrations at 4% and 8%. Treat 8% as a reasonable case for an equity index fund after 15+ years, not a promise, and look at the 4% figure to see the downside.

Guaranteed additions

A percentage of one annualised premium is added to the fund at the end of policy years 6, 10, 15, 20 and 25, as long as all due premiums are paid. LIC’s brochure publishes the full schedule:

End of year	6	10	15	20	25
Premium ₹48,000 or more	5%	10%	20%	25%	30%
Premium below ₹48,000	3%	6%	12%	15%	18%

On a 15-year policy at ₹1 lakh a year, that adds ₹35,000 (5% + 10% + 20%).

Death benefit

If the life assured dies after risk commencement, the nominee receives the highest of:

• the basic sum assured (less any partial withdrawals in the previous two years),
• the fund value, or
• 105% of all premiums paid.

For a child policy, a different, lower benefit applies until risk commences, as set out in the policy document. The year-wise table in the calculator shows the estimated death benefit for each year.

Partial withdrawal, switching and surrender

• Partial withdrawal: allowed after five policy years, subject to limits.
• Switching: four free switches a year between the two funds.
• Surrender: money is locked in for five years. If you stop paying earlier, the fund moves to a discontinued policy fund and is paid out after the lock-in.

Tax benefits and GST

Premiums qualify for deduction under Section 123 of the Income-tax Act, 2025 (earlier Section 80C) (old regime). Maturity proceeds are exempt under Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)) only if the premium is within 10% of the sum assured and, for policies issued after 1 February 2021, your total ULIP premiums do not exceed ₹2.5 lakh a year. From 22 September 2025 there is no GST on individual life insurance premiums. Earlier, 18% GST applied to ULIP charges.

Who should consider Index Plus?

It suits you if you:

• want equity exposure with life cover in one policy and can commit for 10–25 years;
• prefer a simple index-linked fund over picking active funds;
• value the discipline of a regular premium and the free switches.

It may not suit you if you want pure protection (a term plan plus a mutual fund SIP often gives more cover and lower costs) or if you may need the money within five years. Compare the numbers with our SIP calculator and the LIC SIIP Plan 752, LIC’s other regular-premium ULIP.

How to use this calculator

1. Enter the age and annual premium.
2. Choose the term, premium mode and sum assured multiple.
3. Select agent or online to apply the right allocation charges.
4. Set an expected return and compare the 8% and 4% results.
5. Check the year-wise table for fund value and death cover every year. To compare with SIIP 752 or Nivesh Plus 749, try our ULIP calculator, which is built on those two plans.

All figures are estimates from an independent tool; your LIC benefit illustration is the final word.