Overview

LIC Nivesh Plus (Plan No. 749, UIN: 512L317V02) is a single-premium, market-linked Unit-Linked Insurance Plan (ULIP). Since the returns are linked to the performance of the underlying funds, they are not fixed or guaranteed. The plan also offers guaranteed additions, which are credited to the unit fund at specified policy durations, subject to the policy terms.

To help policyholders understand the plan's potential returns under different scenarios, LIC provides benefit illustrations at standard assumed rates.

LIC provides benefit illustrations at 4% and 8%, which are standard illustrative rates prescribed by the Insurance Regulatory and Development Authority of India (IRDAI). These should not be treated as guaranteed returns.

For example, LIC's official illustration shows that a 30-year-old investing ₹1.25 lakh for 20 years under Option 1 could receive ₹4,65,044 at the 8% illustration rate, with a net yield of 6.79% after applicable charges.

Choosing a ULIP involves more than comparing projected maturity values. Your actual returns depend on factors such as the fund you select, the policy charges deducted over time, and market performance.

In this guide, we'll explain how the LIC Nivesh Plus Returns Calculator works, how to interpret the 4% and 8% benefit illustrations, and the key factors that can influence your maturity value, helping you make a more informed investment decision.

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What Is the LIC Nivesh Plus Returns Calculator?

The LIC Nivesh Plus Returns Calculator is a tool that helps estimate the potential maturity value of your policy based on factors such as your single premium amount, policy term, fund option, and sum assured choice.

If you want a personalized estimate, you can generate a quote on the LIC website by entering your investment amount and policy details. LIC will then provide a personalized benefit illustration based on the information you enter.

Several third-party informational websites also offer LIC Nivesh Plus calculators to estimate returns. However, these tools rely on assumptions about policy charges, illustration rates, and sum assured options. Therefore, their projections should be treated as estimates and not as guaranteed maturity values or official benefit illustrations.

Note: The product brochure also includes standard benefit illustrations at 4% and 8%, based on sample assumptions and intended only for illustration.

How to Use the Calculator?

To estimate your projected maturity value, enter the following details:

    • Entry age
    • Single premium amount
    • Policy term
    • Sum assured option
    • Expected annual return rate
LIC Nivesh Plus Returns Calculator

The calculator will estimate your maturity value based on the details provided. Compare the projections at 4% and 8%, as these are the standard illustration rates prescribed for ULIPs by IRDAI.

Keep in mind that these are hypothetical illustration rates. They are not guaranteed returns, are not fund-specific, and do not represent the minimum or maximum returns you can earn. Your actual maturity value will depend on factors such as the fund's NAV performance, market conditions, policy charges, and other applicable deductions.

LIC also states that it does not authorize anyone to make projections about future ULIP fund performance beyond the prescribed 4% and 8% benefit illustrations.

Fund Options and Sum Assured Choices

LIC Nivesh Plus offers four investment funds with different levels of equity exposure and risk. Your choice of fund determines how your premium is invested and can significantly influence your long-term returns.

Generally, funds with higher equity exposure have the potential for higher returns but also carry greater market risk, while funds with lower equity exposure tend to be relatively more stable.

FundEquity ExposureRisk Profile
Bond FundNilLow
Secured Fund15%–55%Low to Medium
Balanced Fund30%–70%Medium
Growth Fund40%–80%High

The Bond Fund invests only in debt securities and is suitable for conservative investors seeking lower risk. The Secured Fund maintains limited equity exposure, offering a balance between stability and growth. The Balanced Fund allocates a larger portion to equities, making it suitable for investors with a moderate risk appetite. The Growth Fund has the highest equity exposure and is intended for investors willing to accept higher market volatility in pursuit of potentially higher long-term returns.

LIC Nivesh Plus offers two sum assured options:

    • Option 1: Basic sum assured is 1.25 times the single premium. This option is available for applicants up to 70 years of age.
    • Option 2: Basic sum assured is 10 times the single premium. This option is available only for applicants up to 35 years of age.

Option 2 provides significantly higher life insurance coverage. However, it also attracts higher mortality charges, which can reduce the maturity value compared with Option 1, assuming all other factors remain the same. Your choice between the two options should depend on your age, insurance needs, and investment objectives.

Charges That Affect Your Returns

The LIC Nivesh Plus Returns Calculator can overstate your returns if you look only at the assumed growth rate. Your actual maturity value is reduced by various policy charges deducted during the policy term.

These include:

    • Premium Allocation Charge: 3.30% for offline purchases and 1.50% for online purchases.
    • Fund Management Charge (FMC): 1.35% per year across all four fund options.
    • Mortality Charge: Varies based on the policyholder's age and the sum at risk.
    • Rider Charges: Applicable if you opt for any available rider.
    • Fund Switching Charges: The policy allows 4 free fund switches in each policy year. Any additional switch beyond this limit is charged at ₹100 per switch.
    • Partial Withdrawal Charges: May apply as per the policy terms.
    • Applicable Taxes: Levied on relevant charges as per the prevailing tax laws.

For LIC's official sample illustration, a 30-year-old investing ₹1,25,000 for 20 years under Option 1 has a projected maturity value of ₹4,65,044 at the 8% illustration rate. However, the corresponding net yield after charges is 6.79%, highlighting the impact these charges can have on your overall returns.

Sample Returns at 4% and 8%

This sample illustration is for a 30-year-old standard life, offline purchase, ₹1,25,000 single premium, 20-year policy term, and no accidental death benefit rider.

PremiumTermOption4% Illustration8% Illustration
₹1,25,00020 yearsOption 1: 1.25x Sum Assured₹2,28,559₹4,65,044
₹1,25,00020 yearsOption 2: 10x Sum Assured₹1,58,999₹3,74,442

Is LIC Nivesh Plus Worth Buying?

You may consider LIC Nivesh Plus if you:

    • Prefer a single-premium ULIP over regular premium payments.
    • Want market-linked investment exposure with life insurance.
    • Value guaranteed additions credited to the unit fund at specified policy durations.
    • Are comfortable with the mandatory five-year lock-in period.
    • Want the flexibility to switch between the available funds during the policy term.

Before investing, keep the following in mind:

    • Life Cover May Be Limited: Under Option 1, the basic sum assured is only 1.25 times the single premium. Option 2 provides 10 times the single premium as life cover but is available only to applicants up to 35 years of age and attracts higher mortality charges. So, LIC Nivesh Plus should not be treated as a substitute for a standalone term insurance plan if your goal is meaningful life coverage.
    • Policy Charges Reduce Investment Returns: Premium allocation charges, Fund Management Charges (FMC), mortality charges, rider charges (if opted), and applicable taxes can lower the effective return. In LIC's official illustration, an 8% assumed gross return translates to a net yield of 6.79% after charges.
    • Compare Alternatives. If your primary objective is long-term wealth creation, compare LIC Nivesh Plus with investing in low-cost mutual funds alongside a separate term insurance plan. Separating insurance and investment may offer greater flexibility and lower overall costs for many investors.

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LIC Nivesh Plus Returns Calculator
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Conclusion

The LIC Nivesh Plus Returns Calculator estimates your policy's potential maturity value, but it does not predict your actual returns. Since the plan is market-linked, your maturity value depends on fund performance, market conditions, and the charges deducted during the policy term.

Look beyond the 4% and 8% benefit illustrations. Consider the impact of policy costs, compare the two sum assured options, and assess whether a ULIP suits your financial goals.

If you want a single-premium plan that combines life insurance with market-linked investments, LIC Nivesh Plus may be an option. If your priority is long-term wealth creation, compare it with low-cost mutual funds and a standalone term insurance plan before investing. If you are looking for reliable long-term coverage, explore our guide on the best term insurance plans in India.

Frequently Asked Questions

Can I make partial withdrawals from LIC Nivesh Plus?

Yes. Partial withdrawals are allowed only after the completion of the mandatory five-year lock-in period applicable to ULIPs. Once the lock-in period ends, you can withdraw a portion of your fund value without surrendering the policy, subject to the conditions set out in the policy document. Any withdrawal reduces the remaining fund value, which may affect future growth and, in certain situations, the death benefit payable. Before making a withdrawal, consider whether it could impact your long-term financial goals and the overall value of your investment.

Is the maturity amount from LIC Nivesh Plus 749 tax-free?

Not always. The tax treatment of LIC Nivesh Plus depends on the sum assured option, the premium amount, and the applicable provisions of the Income Tax Act. Option 1 (1.25× sum assured) does not satisfy the requirement that the premium should not exceed 10% of the sum assured, so its maturity proceeds generally do not qualify for tax exemption. Option 2 (10× sum assured) may qualify for exemption, provided it also satisfies the applicable premium limits for ULIPs issued on or after 1 February 2021. Since tax laws are subject to change and individual circumstances vary, consult a qualified tax advisor before relying on any tax benefit.

Can I change my fund option after buying LIC Nivesh Plus?

Yes. LIC Nivesh Plus allows you to switch between its available investment funds during the policy term, enabling you to adjust your portfolio as your risk appetite or financial goals change. The plan offers four free fund switches in each policy year. Any additional switches during the same policy year attract a charge of ₹100 per switch. While this flexibility allows you to rebalance your investments, frequent switching based on short-term market movements may not improve long-term returns and should be done with a clear investment strategy.

What factors affect the maturity value of LIC Nivesh Plus?

The maturity value depends on several factors, including the performance of the selected fund, market conditions, policy term, applicable charges, and the chosen sum assured option. Since LIC Nivesh Plus is a market-linked ULIP, the value of your investment rises or falls with the Net Asset Value (NAV) of the underlying fund. Charges such as the premium allocation charge, fund management charge, and mortality charge also reduce the overall fund value over time. As a result, the actual maturity amount may differ from the benefit illustrations.

Is LIC Nivesh Plus suitable for short-term investments?

No. LIC Nivesh Plus is designed as a long-term investment and comes with a mandatory five-year lock-in period, making it unsuitable for investors with short-term liquidity needs. Since the plan invests in market-linked funds, remaining invested for a longer duration gives your investment more time to recover from market fluctuations and benefit from compounding. If your financial goal is only a few years away, more liquid investment options, such as fixed deposits or debt mutual funds, may be better suited to your needs.

Does LIC Nivesh Plus provide guaranteed returns?

No. LIC Nivesh Plus is a Unit-Linked Insurance Plan (ULIP), so its returns are linked to the performance of the underlying investment funds and are not guaranteed. LIC provides benefit illustrations at 4% and 8% as required under IRDAI guidelines to show how the policy may perform under assumed rates of return. These are only illustrative scenarios and should not be treated as guaranteed, expected, or minimum and maximum returns. Your actual maturity value will depend on market performance, fund selection, and the policy charges deducted over the policy term.

How often is the NAV updated in LIC Nivesh Plus?

The Net Asset Value (NAV) of each LIC Nivesh Plus fund is computed daily based on the performance of the fund's underlying investments, after deducting the applicable Fund Management Charge (FMC). Since the policy is market-linked, changes in the NAV directly affect the value of your investment. You can check the latest NAV on LIC's official website to track your chosen fund's performance. However, short-term NAV movements should not be the sole basis for evaluating the policy, as ULIPs are generally better suited to long-term investing.

Who should consider buying LIC Nivesh Plus?

LIC Nivesh Plus may be suitable for investors seeking a single-premium ULIP that combines life insurance with market-linked investments in a single policy. It can also appeal to those who prefer investing through LIC, are comfortable with a long-term investment horizon, and value features such as fund-switching and guaranteed additions. However, if your primary objective is to maximize long-term wealth creation or to secure higher life cover at a lower cost, it is worth comparing the plan with low-cost mutual funds and a standalone term insurance plan before investing.

Can I track the performance of my LIC Nivesh Plus investment?

Yes. You can track the performance of your LIC Nivesh Plus investment by checking the Net Asset Value (NAV) of your chosen fund and reviewing your policy statements. LIC also provides online services where policyholders can access their fund value, policy details, and transaction history. Since the NAV is computed daily, it reflects the latest value of your investment after deducting the applicable fund management charge. However, as ULIPs are designed for long-term investing, it is better to assess performance over time rather than focus on short-term market movements.

What should I compare before buying LIC Nivesh Plus?

Before purchasing LIC Nivesh Plus, compare the policy's charges and their impact, available fund options, life cover, lock-in period, and historical fund performance. It is also important to evaluate whether combining insurance and investment into a single product aligns with your financial goals. If your primary objective is wealth creation, compare the expected net returns with those of low-cost mutual funds while considering a separate term insurance policy for comprehensive life cover. This comparison can help you choose the option that best fits your long-term needs.

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