LIC Nivesh Plus Plan: Good or Bad? A Comprehensive Analysis and Review
Is LIC Nivesh Plus Plan a good investment product considering your Financial Goals?
Will LIC Nivesh Plus help you in wealth creation in the long run?
Market-linked products typically invest in a diversified portfolio of assets, which may include equities, fixed income, or other investments.
The growth potential depends on the performance of these underlying assets.
In this article, let us do a detailed analysis and review the specific features, advantages (pros), and disadvantages (cons) along with the potential returns of the plan.
With this research analysis, you can make an informed decision regarding wealth creation.
1.)What is LIC Nivesh Plus Policy?
2.)What are the Features of LIC Nivesh Plus?
3.)Who is Eligible to invest in LIC Nivesh Plus?
4.)What are the Benefits of LIC Nivesh Plus?
5.)What are the Fund options under LIC Nivesh Plus?
6.)Various Charges under LIC Nivesh Plus
7.)Free-Look Period in LIC Nivesh Plus
8.)How to Surrender LIC Nivesh Plus
9.) LIC Nivesh Plus Lock-in Period and Liquidity
10.)Advantages of LIC Nivesh Plus
11.)Disadvantages of LIC Nivesh Plus
12.)LIC Nivesh Plus Plan Research Methodology
13.)LIC Nivesh Plus Plan VS. other investments
i) LIC Nivesh Plus Vs. Pure Term Life Insurance + ELSS
ii) LIC Nivesh Plus Plan VS LIC Bima Jyoti Plan.
iii) LIC Nivesh Plus Plan VS LIC SARAL Pension Plan.
14.)Common Mistakes to Avoid in LIC Nivesh Plus Plan
15.)Final Verdict on LIC Nivesh Plus – Is it good or bad?
This policy is a Unit Linked, Non-Participating, Single Premium Individual Life Insurance plan.
You have a choice of investing the premium in one of the four types of investment funds available.
The Unit Fund is subject to various charges and values of units might increase or decrease, depending on Net Asset Value (NAV).
A detailed LIC Nivesh Plus review highlights that this is a market-linked ULIP, where LIC Nivesh Plus returns depend on fund performance rather than fixed guarantees, making it important to understand how LIC Nivesh Plus works before investing.
Many investors exploring LIC Nivesh Plus policy review consider the plan for long-term wealth creation through market-linked exposure.
In most LIC Nivesh Plus plan reviews, these features are highlighted as core differentiators, especially when comparing LIC Nivesh Plus plan with other ULIP-based wealth creation plans.
LIC Nivesh Plus features and benefits are often compared with other LIC wealth creation plans and ULIP investment products available in the market.
| Option 1 | Option 2 | |
| Basic Sum Assured | 1.25 times the single premium | 10 times the single premium |
| Minimum Age at Entry | 90 days | |
| Maximum Age at Entry | 70 years | 35 years |
| Minimum Age at Maturity | 18 years | |
| Maximum Age at Maturity | 85 years | 50 years |
| Policy Term | 10-25 years | For age at entry up to 25 yrs. – 10 -25 For age at entry 26 to 30 yrs. – 10 -20 For age at entry 31 to 35 yrs. – 10 |
| Premium Paying Mode | Single Premium only | |
| Minimum Premium | Rs. 1,00,000 | |
| Maximum Premium | No Limits | |
LIC Nivesh Plus plan details such as eligibility, policy term, and single premium structure are important for evaluating suitability across different age groups.
On death of the life assured, death benefit will be higher of the following:
If the policyholder survives till the date of maturity, an amount equal to Unit Fund Value shall be payable.
A typical LIC Nivesh Plus returns review shows that maturity benefits depend entirely on LIC Nivesh Plus NAV and fund performance, making it crucial to track LIC Nivesh Plus fund value over time.
Investors often use the LIC Nivesh Plus maturity calculator and LIC Nivesh Plus returns calculator to estimate long-term corpus accumulation.
The allocated premiums will be utilized to buy units from the chosen fund by the Policyholder out of four fund options available.
The four Fund options are Bond Fund, Secured Fund, Balanced Fund, and Growth Fund.
The following table depicts the various types of fund options and their Investment patterns.
| Fund Name | Government / Government Guaranteed Securities / Corporate Debt | Short-term investments such as money market instruments | Investment in Listed Equity Share | Risk Profile |
| Bond Fund | Not less than 60% | Not more than 40% | NIL | Low risk |
| Secured Fund | Not less than 45% and not more than 85% | Not more than 40% | Not less than 15% and not more than 55% | Lower to Medium risk |
| Balanced Fund | Not less than 30% and not more than 70% | Not more than 40% | Not less than 30% and not more than 70% | Medium risk |
| Growth Fund | Not less than 20% and not more than 60% | Not more than 40% | Not less than 40% and not more than 80% | High risk |
The risk profile varies for each fund. You should make sure that your fund risk profile should match your risk appetite.
LIC Nivesh Plus Growth Fund review and LIC Nivesh Plus Balanced Fund NAV today are commonly analysed by investors comparing fund allocation strategies.
Premium Allocation Charge:
The percentage of allocated premium is being charged as Premium Allocation Charge.
For Off-line sale – 3.30%
For On-line Sale – 1.50%
Mortality charge:
The rate of Mortality Charge depends on the age of the life assured starting from a thousand Rupees:
| Age | 25 | 35 | 45 | 50 |
| Rs. | 1.23 | 1.6 | 3.59 | 6.18 |
Accident Benefit Charges:
If the benefit rider has been opted, then the Accident Benefit Charge will be the cost of Accident Benefit cover.
Fund Management Charge:
1.35% p.a. of Unit Fund will be charged for all the four Funds available i.e., Bond Fund, Secured Fund, Balanced Fund, and Growth Fund
It is 0.50% p.a. of Unit Fund for “Discontinued Policy Fund”
Switching Charge:
Only 4 free switches are available within a policy year. Any subsequent switches within that year shall be subject to a Switching Charge of Rs. 100 per switch.
Partial Withdrawal Charge:
This charge is levied at the time of partial withdrawal of the fund during the contract period. A flat amount of Rs. 100/- shall be deducted.
Discontinuance Charge:
It depends on the year of discontinuance and the premium amount.
Miscellaneous Charge:
A flat amount of Rs. 100 will be deducted for any alteration.
Inference these charges: The above charges are part and parcel of the LIC Nivesh Plus plan. In general, other market-linked products don’t levy these types of charges under different heads.
In other market-linked products, other than expense ratio they don’t levy any charges and their investment process is very transparent. So the charges for switching, partial withdrawal, and discontinuance are a burden to an investor.
A deeper LIC Nivesh Plus charges analysis reveals that costs like mortality charges in ULIP, allocation charges, and fund management charges significantly impact LIC Nivesh Plus returns over time.
These cost structures are often cited in LIC Nivesh Plus disadvantages, especially when compared with low-cost mutual fund alternatives.
LIC Nivesh Plus agent commission and LIC Nivesh Plus charges together reduce the effective amount invested into the market-linked funds.
If you are not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days (30 days in case of Online) starting from the date of receipt of the policy bond.
Reviewing the LIC Nivesh Plus brochure helps in understanding all terms clearly before making a long-term commitment.
For more details, you can refer to LIC Nivesh Plus Plan Policy Brochure
LIC Nivesh Plus brochure PDF and LIC Nivesh Plus policy details provide clarity regarding surrender rules, lock-in period, and fund switching terms.
This LIC Nivesh Plus Plan can be surrendered anytime during the policy term.
The Unit Fund Value after deducting the Discontinuance Charge shall be transferred to the Discontinued Policy Fund. The Proceeds of the Discontinued Policy Fund shall be payable at the end of 5 years lock-in-period.
The Unit Fund Value as of the date of surrender shall be payable.
No Discontinuance Charge under the policy.
The LIC Nivesh Plus lock-in period of 5 years is similar to other ULIPs, and understanding the lock in period of ULIP is important for liquidity planning.
Many policyholders review LIC Nivesh Plus surrender rules and LIC Nivesh Plus fund value before making early exit decisions.
LIC Nivesh Plus comes with a mandatory 5-year lock-in period, similar to most ULIP plans.
During this period, surrendering the policy results in the fund value being transferred to the Discontinued Policy Fund.
Investors looking for flexibility and easy liquidity should carefully evaluate the lock-in restrictions before investing.
Understanding the LIC Nivesh Plus lock-in period and partial withdrawal rules is important for long-term financial planning.
It is crucial to carefully assess the product’s performance before investing.
Market-linked products provide exposure to the financial market, but their potential returns might vary.
A practical LIC Nivesh Plus returns calculator approach helps investors understand realistic outcomes instead of relying only on projected figures.
Let us now calculate the potential return of LIC Nivesh Plus. Following is the benefit illustration taken from the sale brochure of LIC Nivesh Plus.
Mr. A who is 30 years old purchases LIC’s Nivesh Plus for Rs 1,00,000/- for a policy term of 20 years. He chooses plan option 2 (10 times the single premium). At the end of 20 years, he receives the fund value.
It is assumed that the Projected Investment Rate of Return that LIC will be able to earn throughout the policy term will be 4% p.a. or 8% p.a.
The Projected Investment Rate of Return is not guaranteed and there are no upper or lower limits on what you might get back as the value of your policy. As it depends on various factors including future investment performance.
| Male | 30 years |
| Policy Term | 20 years |
| Sum Assured | 10 Lakhs |
| Single premium | 1 Lakh |
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 30 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 31 | 2 | 0 | 10,00,000 | 0 | 10,00,000 |
| 32 | 3 | 0 | 10,00,000 | 0 | 10,00,000 |
| 33 | 4 | 0 | 10,00,000 | 0 | 10,00,000 |
| 34 | 5 | 0 | 10,00,000 | 0 | 10,00,000 |
| 35 | 6 | 0 | 10,00,000 | 0 | 10,00,000 |
| 36 | 7 | 0 | 10,00,000 | 0 | 10,00,000 |
| 37 | 8 | 0 | 10,00,000 | 0 | 10,00,000 |
| 38 | 9 | 0 | 10,00,000 | 0 | 10,00,000 |
| 39 | 10 | 0 | 10,00,000 | 0 | 10,00,000 |
| 40 | 11 | 0 | 10,00,000 | 0 | 10,00,000 |
| 41 | 12 | 0 | 10,00,000 | 0 | 10,00,000 |
| 42 | 13 | 0 | 10,00,000 | 0 | 10,00,000 |
| 43 | 14 | 0 | 10,00,000 | 0 | 10,00,000 |
| 44 | 15 | 0 | 10,00,000 | 0 | 10,00,000 |
| 45 | 16 | 0 | 10,00,000 | 0 | 10,00,000 |
| 46 | 17 | 0 | 10,00,000 | 0 | 10,00,000 |
| 47 | 18 | 0 | 10,00,000 | 0 | 10,00,000 |
| 48 | 19 | 0 | 10,00,000 | 0 | 10,00,000 |
| 49 | 20 | 1,08,010 | 10,00,000 | 2,67,893 | 10,00,000 |
| 50 | |||||
| IRR | 0.41% | 5.32% | |||
LIC Nivesh Plus NAV today and LIC Nivesh Plus growth fund performance is often monitored to compare actual returns against projected illustrations
The fund value assumed at a gross return of 4% is 1.08 Lakhs. The fund value assumed at a gross return of 8% return is 2.67 Lakhs.
Under a gross return of 4%, the net return shall be 0.80%. And under the gross return of 8%, the net return shall be 5.32%.
Even if you invest your lump sum in a bank fixed deposit at an average interest rate of 6%, the amount doubles in 12 years (Rule of 72). The return from LIC Nivesh Plus is lower than any debt instrument return.
The risk and return are not proportionate. For wealth creation in the long run, you need a better risk-adjusted return.
This LIC Nivesh Plus returns after 5 years and long-term projection clearly shows that actual returns depend heavily on market performance and charges.
The LIC Nivesh Plus performance in this illustration indicates that even at higher projections, returns may not justify the risk-return trade-off.
So, investing in LIC Nivesh Plus will not generate substantial returns in the long run.
LIC Nivesh Plus returns review suggests that investors should compare post-charge returns carefully before selecting a ULIP investment plan.
Investing in ULIPs offers an opportunity to invest in the market. At the same time, you get tax benefits for the amount invested.
Now, let us look for alternate investments where you get an opportunity to invest in the market as well as tax advantage. Apart from that, we need to look for life cover.
Equity Linked Saving Scheme (ELSS) is a mutual fund scheme that is a market-linked product offering tax benefits. For life cover, let us take a Pure Term Life Insurance Policy.
When comparing LIC Nivesh Plus vs mutual fund, factors like cost efficiency, transparency, and flexibility often tilt the balance toward mutual funds.
LIC Nivesh Plus vs mutual fund comparisons often highlight the higher liquidity and lower cost structure available in direct mutual fund investing.
A pure term policy for a sum assured of ₹ 10 lakhs would cost ₹ 44,500 (Single premium). The Policy term is 20 years. Out of ₹ 1 Lakh, the balance ₹ 55,500 is invested in ELSS fund.
| Pure Term Life Insurance Policy | |
| Policy Term | 20 years |
| Sum Assured | 10 Lakhs |
| Single premium | 44,500 |
| ELSS fund | 55,500 |
At the end of 20 years, while exiting the ELSS fund, capital gains tax arises.
Let us set aside the tax payable from the maturity proceeds. The tax calculation is given below.
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 30 | 1 | -1,00,000 | 10,00,000 |
| 31 | 2 | 0 | 10,00,000 |
| 32 | 3 | 0 | 10,00,000 |
| 33 | 4 | 0 | 10,00,000 |
| 34 | 5 | 0 | 10,00,000 |
| 35 | 6 | 0 | 10,00,000 |
| 36 | 7 | 0 | 10,00,000 |
| 37 | 8 | 0 | 10,00,000 |
| 38 | 9 | 0 | 10,00,000 |
| 39 | 10 | 0 | 10,00,000 |
| 40 | 11 | 0 | 10,00,000 |
| 41 | 12 | 0 | 10,00,000 |
| 42 | 13 | 0 | 10,00,000 |
| 43 | 14 | 0 | 10,00,000 |
| 44 | 15 | 0 | 10,00,000 |
| 45 | 16 | 0 | 10,00,000 |
| 46 | 17 | 0 | 10,00,000 |
| 47 | 18 | 0 | 10,00,000 |
| 48 | 19 | 0 | 10,00,000 |
| 49 | 20 | 4,91,011 | 10,00,000 |
| 50 | |||
| IRR | 8.74% |
| ELSS Tax Calculation | |
| Maturity value after 20 years | 5,35,369 |
| Purchase price | 55,500 |
| Long-term capital gains | 4,79,869 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 3,54,869 |
| Tax paid on LTCG | 44,359 |
| Maturity value after tax | 4,91,011 |
The post-tax fund value is 4.91 Lakhs. The IRR for this cash flow is 8.74%. In this alternate arrangement, you get life cover, participation in the market, and tax benefits.
Also, the return from this alternate investment is more than the inflation rate. That means, that with the accumulated fund value, you can easily meet the inflated cost of your goals. Under the LIC Nivesh Plus Plan, you may fall short of your goals.
Please make a note of one more important point, in the Budget 2021 the government announced that proceeds from ULIP shall be taxable if the annual premium exceeds ₹ 2.5 Lakh in any year of the term of the policy.
This comparison strengthens the argument often seen in LIC Nivesh Plus vs mutual fund discussions, where separating insurance and investment leads to better outcomes.
Let us understand the different features available under the LIC Bima Jyoti Plan.
If you wish to do further analysis you can refer to the article on LIC Bima Jyoti Review – Should You Buy?
Here are some key features under the LIC Saral Pension Plan.
For further analysis and detailed review you can read the article on LIC Saral Pension Review– Should You Buy?
LIC Nivesh Plus versus pension plans is often evaluated by investors seeking retirement-focused income stability instead of market-linked accumulation.
Many investors assume the LIC Nivesh Plus plan offers fixed returns, but a proper LIC Nivesh Plus review shows returns are market-linked and depend on fund performance.
Ignoring charges like allocation, mortality, and fund management costs can reduce actual LIC Nivesh Plus returns.
Not tracking LIC Nivesh Plus NAV today or reviewing LIC Nivesh Plus growth fund performance leads to poor investment decisions.
Also, skipping comparisons like LIC Nivesh Plus vs mutual fund and not using a LIC Nivesh Plus calculator can impact long-term outcomes.
Understanding LIC Nivesh Plus disadvantages, especially the lock-in period of ULIP, is essential before deciding if LIC Nivesh Plus is good or bad for your goals.
Investors should regularly review LIC Nivesh Plus NAV history and LIC Nivesh Plus fund performance to make informed portfolio decisions.
Certainly, investing in market-linked products helps you in the wealth creation process when compared to fixed instruments.
LIC Nivesh Plus has four different fund options catering to your risk appetite. It also offers the flexibility to invest either in equity or debt funds depending upon your risk appetite.
Investors who are ready to take risks should analyse the alpha generated by the product. Better risk-adjusted return is essential for wealth creation in the long run which is missing in LIC Nivesh Plus.
The major reason for poor returns is mainly due to charges under this plan. Charges under the plan include charges for switching, withdrawal and surrender, etc. You may not find these charges in any other market-linked product.
These charges along with High Agent Commission pull down your overall return of the policy.
It’s essential for you to align your investment choice with your risk tolerance, investment goals, and time horizon.
So that you can make informed decisions regarding wealth creation.
Overall LIC Nivesh Plus review suggests that while it offers market exposure, the returns may not be competitive enough to justify the cost structure.
Don’t refer to social media sites such as Quora, Facebook, Twitter, etc. for taking insurance or investment. Consulting a Financial Advisor will be beneficial for you in choosing the right market-linked product for your needs.
Overall, LIC Nivesh Plus good or bad depends on whether an investor prioritizes insurance-linked investing over low-cost, flexible investment alternatives like mutual funds.
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