LIC Nivesh Plus Plan 849 is a unit-linked insurance plan that combines life cover with market-linked investments. Even though it’s withdrawn now, many people still hold it, and calculators help project returns.

What is LIC Nivesh Plus Plan 849?

LIC Nivesh Plus Plan 849 (UIN 512L317V01), launched on March 2, 2020, and withdrawn on October 14, 2024. It’s a non-participating, single-premium unit-linked insurance plan (ULIP) from Life Insurance Corporation of India. This means you pay once, and your money goes into funds that grow with the market, while also getting life insurance protection.

Think of it like parking your money in a savings account that can grow faster, but with some risks from stock markets. It’s good for those wanting both a safety net and growth. Existing policyholders continue to get benefits as per terms.

The plan offers two options for sum assured Option 1 gives 1.25 times your premium, suitable for older ages, while Option 2 gives 10 times for younger folks. Funds include equity, debt, and balanced types to match your risk level.

Key Features and Benefits

This plan stands out for its simplicity: just one premium payment. The minimum premium is Rs 1 lakh, no upper limit, paid in multiples of Rs 10,000. Policy terms range from 10 to 25 years.​

Guaranteed additions are a big plus. After certain years, you get extra units added as a percentage of premium, depending on the fund. For example, in equity funds, it might be 2-5% over time. These boost your fund value without extra cost.​

Death benefit is the higher of sum assured, fund value, or 105% of premiums paid. Maturity gives full fund value. Partial withdrawals are allowed after 5 years, and free switches between funds (up to 12 per year).

No loan facility, but surrender value after the first year. It’s tax-free under Sections 80C and 10(10D) for eligible cases.

Eligibility Criteria

Anyone from 90 days old can join, but the max entry age differs. For Option 1 (1.25x SA), up to 70 years; Option 2 (10x SA) up to 35 years. No medical tests for most, depending on age and premium.

How the Calculator Works

A LIC Nivesh Plus Plan 849 calculator estimates your maturity or surrender value based on inputs like premium, age, term, fund choice, and expected rate of return. It factors in charges, guaranteed additions, and growth.

You enter single premium (say Rs 5 lakhs), policy term (15 years), expected IRR (4-8% conservative), and fund type. It shows projected fund value, death benefit, and net gain. Tools like those on PolicyBazaar or third-party sites use NAV and past performance.

Charges deducted: allocation (biggest, 4-6% first year, drops), fund management (1.35% pa), mortality (low), policy admin. Unallocated premium joins fund immediately.

Example: Rs 1 lakh premium, 10 years, 6% return maturity around Rs 1.8-2 lakhs after additions (rough, varies). Always use online tools for precision.

Charges You Should Know

Every ULIP has costs, but they’re capped by IRDAI. Allocation charge: Lower of % of premium or fund value, max Rs 6000 first year.

Fund Management Charge (FMC): 1.35% for equity/debt, deducted daily via NAV. Mortality charge based on age/risk. No premium allocation after the first, since it’s a single payment.

These reduce early returns but lessen over time.

Guaranteed Additions Explained

One of the best parts is fixed extras credited to your fund at NAV. Rates depend on fund and policy year. For the Wealth Fund (equity): 5% in years 10-15, say.

They apply after lock-in, like 2% of the premium in years 6-10 for the secure fund. This guarantees some growth even if markets dip. Total can add 20-30% extra over the term.

Sample Calculations with the Calculator

Let’s say Mr. Rao, 30 years old, Rs 10 lakhs premium, Option 2, 15-year term, Secure Fund, 5% expected return.

• Allocated premium: ~Rs 9.4 lakhs (after charges)
• Guaranteed additions: ~Rs 2 lakhs cumulative
• Projected maturity: Rs 17-19 lakhs
• IRR: Around 6-7%

For higher risk: Equity fund at 8% return – maturity Rs 22 lakhs+. Use calculators to tweak. Tools project year-wise fund growth.

Free-look period: 15-30 days refund with deductions.

Funds Available for Investment

Four funds: Secure (debt-heavy, low risk), Balanced (mix), Growth (equity tilt), Wealth (high equity). Switch free.

Choose based on age young go equity, older debt. Past NAV growth: Equity ~12% CAGR historically, but future varies.

Benefits at Maturity and Death

Maturity: Full fund value = units x NAV. Tax-free if premium <2.5 lakhs or SA met.

Death: nominee gets higher of SA, fund value, or 105% premiums. Continues till term if minor.

Partial withdrawal: After 5 years, min Rs 10k, max 20% fund/year.

Why Use a Calculator?

It shows if plan fits goals. Compare IRR with FD (6-7%) or equity MFs (10-12%). Helps surrender decisions. Online free.

Input real NAV from LIC site for accuracy.

Existing Policyholders: What Now?

Withdrawn Oct 2024, but policies run full term. Continue premiums? No, single pay. Track NAV monthly on LIC India. Surrender if needed, but hold for additions.

Consult an agent for servicing.

Frequently Asked Questions (FAQs)

Conclusion

LIC Nivesh Plus Plan 849 suits single-premium investors seeking insurance plus growth. Use calculators to plan wisely and factor charges and additions. Even withdrawn, it’s valuable for holders to track and hold long-term for best results.