LIC’s SIIP (852) – Unit Linked Plan – Monetize market opportunity
LIC has introduced SIIP -Plan 852-(Systematic Investment Insurance Plan) with effect from 2nd March 2020. The intention is to provide an opportunity for the customers to monetize the investment opportunities provided by the market. LIC has decided to launch the product at a time when its non-linked insurance business performance has been excellent with more than 70 % market share. And the public sector insurance behemoth looks for sealing the lacunae in the market-linked policies sector with the launch of SIIP (852) and Nivesh Plus (849).
SIIP – Plan 852 is a ‘Regular 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.
Minimum Premium | ||||
Premium Mode | Yearly | Half Yearly | Quarterly | Monthly |
Minimum Premium | 40,000 | 22,000 | 12,000 | 4,000 |

Regular premium Unit Linked Plan
Premium paid on a regular basis as per the mode chosen by the customer

Refund of Mortality Charge
Mortality charges deducted to provide insurance cover shall be refunded at the time of maturity

Eligible for Guaranteed Additions
Guaranteed additions shall be added and converted to units at pre-defined specific intervals.
Basic Sum Assured | ||
Age | For Age below 55 years | For age 55 years and above |
Condition | 10 times Annualized Premium | 7 times the Annualized premium |
LIC's SIIP - Plan 852 - How it works...
The term can be chosen anywhere between 10 to 25 Years.
The amount and premium mode decided by the customer.
Insurance coverage will be 7 times if age is above 55 and 10 times for others.
Premium paid is converted to units as per the unit price on the date of payment.
Guaranteed Additions added to the policy at specific intervals and is converted to units.
Mortality Charges (to provide insurance coverage) and other charges deducted at regular intervals.
Fund value available as on date is paid, if the policyholder decide to surrender the policy (after the lock-in period of 5 years).
On death during the term of the plan, the higher of, sum assured or the fund value (less partial withdrawals in last 2 years) shall be paid.
On surviving the term of the policy, mortality charges deducted + fund value available is paid as maturity benefit.
Benefits payable under the policy
Death Benefit
Date of Commencement of Risk | ||
Age | Age at entry less than 8 years | Age at entry more than 8 years |
Condition | The risk will commence either of completion of 2 years from the date of commencement of policy or policy anniversary coinciding with or immediately following the completion of 8 years of age whichever is earlier. | Risk will commence immediately from the date of commencement of the policy. |
An amount equal to the unit fund value shall be payable.
An amount equal to the highest of the following shall be payable.
- Basic Sum Assured (less partial withdrawals in the last two years); or
- Unit Fund Value; or
- 105% of the total premiums received(less partial withdrawals in the last two years).
Maturity Benefit
On Life Assured surviving the term of the policy, an amount equal to the Unit Fund value will be payable.
Refund of Mortality Charge
On the life assured surviving the stipulated date of maturity, an amount equal to the total amount of mortality charges deducted in respect of life insurance cover shall be payable along with the maturity benefit.
Mortality charge refund will not be applicable for discontinued or paid up policies and while surrendering a policy.
Guaranteed Additions
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 year | Guaranteed additions (% of annualized premium) |
6 | 5% |
10 | 10% |
15 | 15% |
20 | 20% |
25 | 25% |
LIC's SIIP - Investment Funds Available
Fund Type | Investment in Government/Government Guaranteed Securities/Corporate Debt | Short -term Investments such as money market instruments | Investment in listed equity shares | Objective | Risk Profile |
Bond Fund | Not less than 60% | Not more than 40% | Nil | To provide relatively safe and less volatile investment option mainly through accumulation of income through investment in fixed income securities | 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% | To provide steady income through investment in both equities and fixed income securities | 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% | To provide balanced income and growth through similar proportion investment in both equities and fixed income securities | 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% | To provide long term capital growth through investment primarily in equities | High Risk |
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
LIC's SIIP - Premium and benefit calculator
Online Premium and Benefit calculator provided below can help you to understand the benefit pattern of the plan easily. You can give the expected growth rate and get the approximate returns at the provided growth rate.
LIC's SIIP (ULIP Plan 852) -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.
Premium Allocation Charges (% of premium) | ||
Year | Offline Sale | Online sale |
First Year | 8.00% | 3.00% |
2nd to 5th Year | 5.50% | 2.00% |
Thereafter | 3.00% | 1.00% |
Mortality Charge
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 higher of (1)Basic Sum Assured (in-force policies)/Paid up sum assured(reduced paid-up policies) (2) Unit Fund value (3) 105% of all premium paid -(Minus) Unit fund value.
Example of Mortality Charges | |||
Age | Charge | Age | Charge |
10 | 0.55 | 50 | 6.18 |
20 | 1.11 | 60 | 14.42 |
30 | 1.32 | 70 | 32.32 |
40 | 2.25 | 80 | 75.70 |
Fund Management Charges
Fund Management Charge | |
Fund | Charge applicable |
Bond Fund, Secured Fund, Balanced Fund, Growth Fund | 1.35% of unit fund per year |
Discontinued Policy Fund | 0.50% 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.
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 discontinuation | Annualized premium(AP) up to Rs.50,000 | Annualized premium (AP) above Rs.50,000 |
1 | Lower of 20% of AP or PV subject to a maximum of Rs.3,000 | Lower of 6% of AP or PV subject to a maximum of Rs.6,000 |
2 | Lower of 15% of AP or PV subject to a maximum of Rs.2,000 | Lower of 4% of AP or PV subject to a maximum of Rs.5,000 |
3 | Lower of 10% of AP or PV subject to a maximum of Rs.1,500 | Lower of 3% of AP or PV subject to a maximum of Rs.4,000 |
4 | Lower of 5% of AP or PV subject to a maximum of Rs.1,000 | Lower of 2% of AP or PV subject to a maximum of Rs.2,000 |
5 and on wards | Nil | Nil |

Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.