LIC Nivesh Plus Plan 749 | LIC New Nivesh Plus Plan

LIC Nivesh Plus Plan 749 – On October 11, 2024, the Life Insurance Corporation of India (LIC) introduced a revamped version of its popular plan, Nivesh Plus. This plan, known for its unit-linked, non-participating single premium investment options, has been designed to provide a balance of insurance coverage and equity investment, catering to individuals seeking growth through market-linked instruments. Previously known as Plan No. 849, it now carries the label Plan No. 749, offering enhanced features while retaining its core structure.

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Key Features of LIC Nivesh Plus Plan 749

Nivesh Plus is a Unit Linked Insurance Plan (ULIP) that allows policyholders to enjoy the dual benefit of life insurance coverage and wealth creation through market-linked investments. It gives flexibility to invest in equity funds, providing the potential for significant returns, while also ensuring a sovereign guarantee by LIC of India.

The plan offers two key options:

1. Option 1: 1.25 times the Risk Cover
2. Option 2: 10 times the Risk Cover

Each option caters to different customer needs depending on their investment risk appetite and insurance cover requirements.

Also see: LIC New Bima Jyoti Plan 760

Investment and Risk Cover Options

Minimum Entry Age: 90 days

Maximum Entry Age:

• Option 1 (1.25 times risk cover): 70 years
• Option 2 (10 times risk cover): 35 years

For Option 2, where the risk cover is 10 times the premium, the policy terms vary according to the age of the policyholder:

• For ages 25 and below: Policy term of 10 to 25 years
• For ages 26 to 30: Policy term of 10 to 20 years
• For ages 31 to 35: Policy term of 10 years

Premium and Sum Assured Details

The minimum premium amount in Nivesh Plus 749 has been increased to ₹1.25 lakh (previously ₹1 lakh). The sum assured can be increased in multiples of ₹5000, allowing for flexible premium payments and insurance cover. There is no maximum premium limit, but the insurance cover eligibility is based on the individual’s Income Tax Returns (ITR).

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Example:

If a policyholder invests ₹1.25 lakh, they can increase their sum assured in multiples of ₹5000, such as ₹1,30,000 or ₹1,35,000. The maximum premium depends on the individual’s financial standing as per their ITR.

Policy Term

For Option 1, the sum assured is 1.25 times the single premium, and the policy period ranges between 10 to 25 years.

Guaranteed Additions

One of the standout features of Nivesh Plus 749 is its Guaranteed Additions. LIC offers guaranteed growth on your investment, which increases over time:

• 6th year: 3%
• 10th year: 4%
• 15th year: 5%
• 20th year: 6%
• 25th year: 7%

These guaranteed additions are provided in addition to the policyholder’s existing fund value.

Investment Options

The Nivesh Plus policy allows policyholders to invest in one of four available funds:

1. Bond Fund: Low-risk profile
2. Secure Fund: Low-to-medium risk profile
3. Balanced Fund: Medium-risk profile
4. Growth Fund: High-risk profile

Fund Allocation:

Bond Fund:

• Maximum 60% in securities
• Up to 40% in short-term investments
• Very low-risk exposure to equity

Secure Fund:

• Between 45% and 85% of investments in securities
• Up to 40% in short-term investments
• 15% to 55% in equity

Balanced Fund:

• 30% to 70% in securities
• Not more than 40% in short-term investments
• Equity allocation between 30% and 70%

Growth Fund:

• Maximum 20% in securities
• 40% in equity, allowing for stock market exposure
• Remaining 40% to 80% in equities, making it a high-risk, high-return plan

Charges in Nivesh Plus 749

One of the changes LIC has introduced in Nivesh Plus 749 involves Fund Management Charges (FMC):

• Active policies: 1.35% FMC
• Discontinued policies: 0.50% FMC

Flexibility and Switching Options

Policyholders of Nivesh Plus 749 can switch between the four available funds based on their risk appetite and market conditions. If a policyholder feels that the market is performing poorly, they can switch from a high-risk fund like Growth Fund to a safer option like Secure Fund.

• Number of switches allowed per year: 4
• Switching charge: ₹100 per switch

Partial Withdrawals

Nivesh Plus offers the option of partial withdrawal of funds after a specific period. Policyholders can withdraw their units based on the number of years the policy has been in force:

• 6 to 10 years: 15% of the fund value
• 11 to 15 years: 20% of the fund value
• 16 to 20 years: 25% of the fund value
• 21 to 25 years: 30% of the fund value

This feature provides liquidity for policyholders who may require funds during the policy term.

Death Benefit

In the unfortunate event of the policyholder’s demise, LIC offers a death benefit that includes:

• The fund value at the time of death
• The insurance cover, which is either 1.25 times or 10 times the single premium depending on the chosen option

Maturity Benefit

Upon maturity, the policyholder receives the accumulated units as per the market value of the chosen funds. The Guaranteed Additions offered by LIC add to the fund value, providing a boost to the returns at key intervals during the policy term.

Lock-In and Free-Look Period

• Lock-in period: 5 years (remains unchanged from the previous version of the plan)
• Free-look period: Extended from 15 days to 30 days, providing policyholders more time to review the policy after purchase.

Conclusion

LIC Nivesh Plus Plan 749 stands out as a balanced ULIP, combining life insurance coverage with the potential for market-driven growth. With two flexible options—1.25 times or 10 times risk cover—and multiple fund choices catering to different risk appetites, this plan provides significant investment potential along with a sovereign guarantee from the Government of India.

The plan’s Guaranteed Additions, flexibility in fund management, switching options, and partial withdrawal feature offer policyholders control and the ability to tailor the policy according to their financial goals. Whether the aim is wealth accumulation, insurance coverage, or both, Nivesh Plus 749 is an ideal choice for those seeking a long-term, market-linked investment opportunity under the secure umbrella of LIC.

This article provides an in-depth understanding of LIC Nivesh Plus Plan 749, detailing its features, benefits, and the changes introduced in its latest version. Policyholders can make informed decisions about their investments, optimizing returns while safeguarding their financial future with LIC trusted guarantees.

Also see:

• LIC Jeevan Lakshya Plan 733
• LIC Amritbaal Plan 774
• LIC Jeevan Labh Plan 736
• LIC Jeevan Anand Plan 715
• LIC Jeevan Utsav Plan 771

FAQs about LIC Nivesh Plus Plan 749

Disclaimer: The information provided here is for general understanding and educational purposes only. It should not be considered financial or legal advice. Please consult with a licensed financial advisor or insurance expert before making any investment decisions. Terms and conditions of LIC’s Nivesh Plus Plan No. 749 may vary, and policyholders should refer to the official policy document for accurate details.