LIC Nivesh Plus Plan No 849 – Should you invest?




LIC Nivesh Plus Plan No 849 ReviewLIC Nivesh Plus Plan No 849 Review


LIC is fond of launching new insurance plans during March every year and targets for people who go for last minute tax saving rush. This time LIC has launched Nivesh Plan No. 849 on 2nd March, 2020. This is single premium and Unit Linked Insurance Plan (ULIP). In this article we would review LIC Nivesh Plus No 849, its features, plan options, positives and hidden factors and would review this ULIP Plan.

LIC March Insurance Plans





Don’t laugh at the title above. LIC launches tax saving insurance plans every year. This is just to grab the attention of people who run for last minute tax saving and that too salaried individual. This time they launched two plans  1) LIC Nivesh Plus No 849 and 2) LIC SIIP Plan No 852. Both these plans are launched on 2nd March, 2020.

Also Read: LIC Jeevan Amar Vs Tech Term – Which is best LIC Term Plan?

Features of LIC Nivesh Plus No 849


Here are the key features.

1) This is a single premium insurance plan. Means you pay the insurance amount only once and have risk coverage for the entire duration of the insurance plan.

2) This is ULIP Plan. You would be allocated fund units like any other mutual funds.

3) Eligibility for guaranteed additions at specific intervals like end of 6 years, 10 years, 15 years, 20 years and 25 years.

4) Option to select one of the two sum assured options.

5) Policy tenure is 10 to 25 years, depending on the age of the individual who is taking the ULIP plan

6) You can invest in 4 fund options:

7) One can opt for 4 switches between the funds in a policy year. Beyond this, one need to pay Rs 100 per switch.

8) Any proposer in the age of 90 days to 35 years (Option-2) and upto 70 years (Option-1) can take this plan.

9) One can invest minimum of Rs 1 Lakh as single premium. There is no maximum limit.

10) Like any ULIP Plan, this plan too has 5 years lockin period. If you are new, you can check FAQs on ULIPs here.

What are Sum Assured Options in LIC Nivesh Plus Plan No 849?


At the inception, the proposer can choose the basic sum assured option. There are basically two options available:

1) Option 1

i) Sum assured would be 1.25 times of the single premium.

ii) The policy tenure can be 10 to 25 years of age.

2) Option 2

i) Sum assured would be 10 times of the single premium.

ii) In this option, one can claim income tax benefits on insurance premium paid u/s 80C.

iii) One would also get income tax benefit u/s 10(10D) on the insurance maturity amount.

iv) If the proposer age is 18 to 25 years, the policy tenure can be 10 to 25 years of age. For 26 to 30 years, the tenure can be 10 to 20 years and for 31-35 years of age, the tenure can be 10 years only.

What are the Investment Funds available in LIC Nivesh Plus No 849?


There are basically 4 funds available.

1) Bond Fund

Investment in Govt Securities / Corporate Debt – 60% to 100%

Short Term investments incl money market instruments – 0% to 40%.

The risk profile is Low Risk.

2) Secured Fund

Investment in Govt Securities / Corporate Debt – 45% to 85%.

Short Term investments incl money market instruments – 0% to 40%.

Investment in Equity – 15% to 55%.

The risk profile is Lower to Medium Risk.

3) Balanced Fund




Investment in Govt Securities / Corporate Debt – 30% to 70%

Short Term investments incl money market instruments – 0% to 40%.

Investment in Equity – 30% to 70%

The risk profile is Medium Risk.

4) Growth Fund

Investment in Govt Securities / Corporate Debt – 20% to 60%

Short Term investments incl money market instruments – 0% to 40%.

Investment in Equity – 40% to 80%

The risk profile is High Risk.

What are Guaranteed Additions in this ULIP Plan?


LIC would give guaranteed additions as the percentage of the single premium paid (I repeat this is what you paid) on specific intervals indicated below. These would be added in terms of units to your fund value. However, the policy should be in force.

End of 6 years – 3%

End of 10 years – 4%

End of 15 years – 5%

End of 20 years – 6%

End of 25 years – 7%




What are the various charges in LIC Nivesh Plus ULIP Plan?


Since this is ULIP plan, one would think about various charges in this plan. Let us review them now.

1) Premium Allocation Charges: In simple terms, this is like charges collected at the beginning of the policy. These charges are reduced from your single premium and balance is used to purchase the units in the insurance plan. Here are the premium allocation charges:

i) Offline Sale – 3.3%

ii) Online Sale – 1.5%

2) Mortality Charges: These are charges which are taken at the beginning of the policy to have insurance cover. 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.

3) Fund Management Charges: This is management fees to run the funds under this plan. This is similar to expense ratio in mutual funds which is only fund management fees.

The fund management charges are 1.35% of the total fund value in a year.

In case of discontinued policy fund, it would be 0.5% of the fund in the year.

4) Discontinuation Charges

This charge would be levied by cancelling the appropriate units in the policy as on the discontinuance of the policy.

1st year – Lower of 2% of single premium or fund value. The max is Rs 3,000.

2nd year – Lower of 1.5% of single premium or fund value. The max is Rs 2,000.

3rd year – Lower of 1% of single premium or fund value. The max is Rs 1,500.

4th year – Lower of 0.5% of single premium or fund value. The max is Rs 1,000.

5th year onwards – Nil

How to check LIC Nivesh Plus Premium Calculator?

If you are looking for LIC Nivesh Plus Premium calculator, you can check this LIC link.

Positive Factors in LIC Nivesh Plus ULIP Plan No 849


1) This is single premium plan. You don’t need to pay insurance premiums every year.




2) Guaranteed additions of 3% to 7% at specific intervals.

3) The option to choose among 4 funds.

4) You can do 4 free switches in a policy year.

Hidden Factors / Negative Factors in LIC Nivesh Plus ULIP Plan


Here are few negative factors:

1) Option-1 offers sum assured of only 1.25 times of single premium which is very low. As an example, even if you want to pay Rs 2 Lakhs single premium, the sum assured would be just Rs 2.5 Lakhs.

2) You can’t opt for maximum policy tenure. As an example, if you have crossed 30 years age, you can take only 10 year policy tenure.

3) Guaranteed Additions indicated are between 3% to 7% of initial single premium paid that too at specific intervals. Even if you do simple FD, you can get upto 7% returns per annum.

4) Premium allocation charges are high. If you have taken policy offline, the charges are 3.3% and if taken online it is 1.5%.

5) If you consider premium allocation, fund management fees, mortality charges, the overall allocation charges are still high.

Also Read: Best Term Plan in India for 2020

LIC Nivesh Plus Plan No 849 – Should you invest?


LIC targets salaried individuals that too who are in a last minute tax rush in March. One should consider the positives and negatives in this plan. There are several good tax saving investment options like ELSS Funds, PPF etc., which are far better than such plans. Take a step-back and think, you have the answer.

Readers, what is your view about this ULIP Plan from LIC?

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Suresh KP

LIC Nivesh Plus Plan No 849 – Single Premium ULIP Plan Review

Note: Someone was asking whether LIC Nivesh Plus Hindi version is available?. I write this blog only in English.



Suresh KP

8 comments

  • Sree

    Hi, request you to clarify the below:
    1.How risky is it to invest in ELSS?
    2.What are the average expected returns over 5-yr horizon?
    3.Any idea of some good investment policies from Insurance Co. with reasonable returns?
    Thank you

    • Hello Sree, ELSS mutual funds have risks like any other mutual funds. If you are the long term investor and can invest for 5-10 years, you can go ahead for ELSS funds. ELSS funds does not guarantee any returns. However one can assume 12% annualised returns if you can invest for 5-10 years. There is nothing like good investment policies. All these are insurance-cum-investment policies where you can get 5% to 6% returns.

  • Sougata Sarkar

    Please read the plan with proper care and then publish such articles. Option 1 is 1.25 times of Sum Assured. And option 2 is 10 times of annual premium. So be wise and think before you say that Risk coverage is low. Ulips are the best plan in combination with investment cum risk coverage.

    • Your statements are incorrect. 1) How sum assured would be sum assured x 1.25 times? 2) How in option-2 it would be 10 times of annual premium when this plan itself is SINGLE PREMIUM. Pls recheck one more time and don’t mislead the readers of our blog.

  • Kishore Kumar Malik

    Hi I am of 59 years. Please suggest any policy which will give every month some return like pension plan and how much amount all together we have to deposit to get approx 40/50000/- RS per month.
    Thanks

    • Kishore, Pension plans would provide low pensions, hence I would not recommend. You can invest in post office MIS scheme + Bank FD’s which are safer as of now. If you can take some risk, you can invest debt mutual funds.

  • Padma P

    1) I want to invest under section 80c ,which is the best investment.
    2) pl suggest best SIP for 2/5 years investment
    3 ) single investment plan for my 12 years old girl child, where she gets regulay monthly income after 25 years of her age with tax exemption
    Thank you

    • 1) If your goal is 80c, you should still opt for ELSS mutual funds.
      2) There is no such plan where you can invest now and get tax free monthly income after 13 years. But you can opt for PPF where you can open in the name of your minor child and after 15 years, she can get tax free maturity amount. You can then deposit in some FD or Post office to get safe regular monthly income.

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