LIC’s Nivesh Plus (849) – Authentic review with calculators and illustrations

(Last Updated On: March 3, 2020)

LIC of India has introduced the single premium ULIP plan Nivesh Plus – Plan 849 with effect from 2nd March 2020. And naturally, along with its regular premium counterpart, SIIP – Plan 852, it provides an opportunity for the populace to monetize the investment opportunities of the share market. The interesting fact is that LIC has timed the introduction of the plan amidst the speculations of the proposed share market listing of the company.

Nivesh Plus 849 is a ‘Single Premium, Unit Linked, Individual life insurance plan’ which offers insurance cum investment opportunities during the term of the policy. The plan is available offline as well as online.

LIC's Nivesh Plus - Plan 849 - Key features

Nivesh Plus

Single Premium ULIP Plan

Tax benefits and one-time payment facility make it a hassle-free investment option.

LIC SIIP Guaranteed Additions

Eligiblity for Guaranteed Additions

Guaranteed additions shall be added and converted to units at pre-defined specific intervals.

Low charges compared to similar plans

Lower charges ensure better returns at the time of maturity.

Sum Assured Options

The proposer has the flexibility to chose the basic sum assured for the amount he is paying, at the time of inception. By selecting the 10 times the single premium option, the life assured can claim the section 80C benefit for the premium paid as well as section 10(10D) benefit on the maturity amount. So if you need income tax benefits it is better to go for ‘Option 2’ whereas if an investment is a prime motive, ‘Option 1’ can be selected.

Nivesh Plus – Sum Assured options
Option 11.25 times of the Single Premium
Option 210 times of the Single Premium
Option once selected cannot be altered

Nivesh plus - Policy term restrictions

Option 1: If Basic Sum Assured is 1.25 times of Single PremiumOption 2: If Basic Sum Assured is 10 times of Single Premium
For age at Entry up to 25 YearsFor Age at entry 26 to 30 YearsFor age at entry 31 to 35 years
10 to 25 years10 to 25 Years10 to 20 Year10 Years

Nivesh Plus (Plan 849) -Investment funds available

Fund TypeInvestment in Government/Government Guaranteed Securities/Corporate DebtShort -term Investments such as money market instrumentsInvestment in listed equity sharesObjectiveRisk Profile
Bond FundNot less than 60%Not more than 40%NilTo provide relatively safe and less volatile investment option mainly through accumulation of income through investment in fixed income securitiesLow risk
Secured FundNot less than 45% and not more than 85%Not more than 40%Not less than 15% and not more than 55%To provide steady income through investment in both equities and fixed income securitiesLower to medium risk
Balanced FundNot less than 30% and not more than 70%Not more than 40%Not less than 30% and not more than 70%To provide balanced income and growth through similar proportion investment in both equities and fixed income securitiesMedium risk
Growth FundNot less than 20% and not more than 60%Not more than 40%Not less than 40% and not more than 80%To provide long term capital growth through investment primarily in equitiesHigh Risk

Guaranteed Additions - Adding value to the plan

Guaranteed additions as a percentage of one annualized premium as mentioned in the table below shall be added to the Unit Fund on completion of specific durations of policy years shall be paid, provided, the policy is in force.

End of policy yearGuaranteed additions (% of annualized premium)

Switching of funds

The policyholder can switch between any fund types mentioned above during the policy term. On switching, the entire amount is switched to the new fund opted for. During a given policy year 4 switches will be allowed free of charge and subsequent switchings will have a fixed charge of Rs. 100 per switch.

Read more: Fund switching techniques for ULIP policies – Guide

Nivesh Plus (Plan 849) Premium and Benefit Calculator

The online calculator for Nivesh plus plan provided below can help you to understand the benefit pattern of the plan quickly and easily. Please note that the expected return rate has to be provided to get the likely return amount.

LIC's Nivesh Plus (849) - charges applicable

Premium Allocation Charge

This is the percentage of the premium appropriated towards charges from the premium received and the balance amount is used to purchase the units of the policy.

The premium Allocation charge is as below:

  • For Offline sale: 3.30%
  • For Online sale: 1.50%

Mortality Charges

Mortality charge is the cost of insurance cover and will be taken at the beginning of each policy month by canceling the appropriate number of units. Mortality charge will depend on the sum at risk, which is the difference between the basic sum assured and the unit fund value as on the date of deduction of charge.

Example of Mortality Charges

Fund management charges

Fund Management Charge
FundCharge applicable
Bond Fund, Secured Fund, Balanced Fund, Growth Fund1.35% of unit fund per year
Discontinued  Policy Fund0.50% of unit fund per year

This is the charge levied as a percentage of the value of assets for managing the funds under the policy. This charge is levied at the time of computation of NAV on a daily basis.

Discontinuance charges

This charge will be levied by canceling the appropriate number of units out of unit fund value as on the date of discontinuance of the policy.

Year of discontinuationSingle premium(SP) up to Rs.3,00,000Single premium (SP) above Rs.3,00,000
1Lower of 2% of SP or FV subject to a maximum of Rs.3,000Lower of 1% of SP or FV subject to a maximum of Rs.6,000
2Lower of 1.5% of SP or FV subject to a maximum of Rs.2,000Lower of 0.7% of SP or FV subject to a maximum of Rs.5,000
3Lower of 1.00% of SP or FV subject to a maximum of Rs.1,500Lower of 0.5% of SP or FV subject to a maximum of Rs.4,000
4Lower of 0.5% of SP or FV subject to a maximum of Rs.1,000Lower of 0.35% of SP or FV subject to a maximum of Rs.2,000
5 and on wardsNilNil

18 thoughts on “LIC’s Nivesh Plus (849) – Authentic review with calculators and illustrations

  • March 2, 2020 at 2:46 am

    Thank you sir

    • March 2, 2020 at 11:48 am

      Thank you and happy to know that the article was useful to you.

  • March 2, 2020 at 2:23 pm

    Is this policy gives good returns compared to Single premium endowment policies that are introduced previously by LIC. Previously single premium policys are not related to market rates but are fixed with bonus rates. So the question arrives essential regarding shares that LIC is going to make its market values.

    • March 3, 2020 at 8:58 am

      As the charges are low the plan has good potential to give good returns. But it all depends on market performance unless you are selecting a bond fund. The bond fund may give slightly better returns than single premium endowment.

  • March 3, 2020 at 11:32 am

    Thank you for your valuable views sir……

    • March 6, 2020 at 4:13 pm


  • March 10, 2020 at 5:52 am

    I want to invest 15lacs IN LIC NIVESH PLUS 849 for 25 years tell me the approximate maturity value and is it taxable 2] is it a good investment

    • March 11, 2020 at 6:00 am

      Nivesh plus is a ULIP (Unit linked insurance plan) where the maturity amount depends on the performance of the market. If you are investing the amount as a single premium, make sure that you invest when the market is down. There is no point in giving any value now. If you are opting for 10 times insurance option, the maturity amount will not be taxable.
      If you are looking for a long term investment it is a good investment instrument. Make sure that you stay invested even if there is a dip in the market in between and be prepared to wait till the predecided maturity date.

  • March 11, 2020 at 1:40 pm

    Sir kindly share the same for Market plus 191 plan

    • March 15, 2020 at 2:47 pm

      Market plus is already withdrawn plan and I shall write an article if time permits…

  • May 3, 2020 at 2:03 pm

    sir now share market is down can i invest in this plan now

    • May 5, 2020 at 12:59 pm

      When ever the market is down it should be considered an opportunity for market linked products… This is the right to consider investing…

  • July 16, 2020 at 10:02 am

    i want to invest 10 lac in lic plan 849 for 20 years , is tax deducted annually while filing itr or I’m tax on maturity.

    • July 28, 2020 at 9:45 am

      If you are opting for 10 times insurance no tax will be deducted from the maturity amount as section 10 (10D) will become applicable. If coverage of 1.25 times has opted the maturity amount will become taxable as per the rate applicable for the policyholder at the maturity year.

  • March 21, 2021 at 11:47 pm

    Sir,is it true that LIC refunds risk cover charges if policy holder is alive on maturity in SIIP plan or Nivesh plan ?

    • April 12, 2021 at 4:07 pm

      Risk charges will be refunded in the SIIP plan if the policyholder survives the term but that facility is not available on Nivesh Plus.

  • November 29, 2021 at 6:58 am

    Sir can I get tax benefit beyond 80 cc 1500000 in this plan

    • January 8, 2022 at 2:55 pm

      No, only 80C rebate shall be available for the plan.


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