LIC SIIP – ULIP Plan No 852 – Should you invest?




LIC SIIP – ULIP Plan No 852 – Should you invest?


This week LIC has launched two ULIP Plans. We covered LIC SIIP (Systematic Investment Insurance plan) plan earlier. LIC’s other plan is SIIP which means Systematic Investment Insurance Plan. As indicated earlier LIC is fond of launching new insurance plans in March every year and aims for salaried individuals who want to save tax in last minute. This is single premium and Unit Linked Insurance Plan (ULIP). In this article we would review LIC SIIP (Systematic Investment Insurance plan) No 852, its features, plan options, positives and hidden factors.

LIC fond of launching March Plans





LIC launches tax saving insurance plans every year. This is just to grab the attention of salaried individuals who do not plan ahead of time and rush in the last minute for tax saving. This time they launched two plans  1) LIC SIIP (Systematic Investment Insurance plan) No 852 and 2) LIC Nivesh Plus Plan No 849. Both these plans are launched on 2nd March, 2020.

LIC SIIP Plan is evolved from typical mutual fund SIP – Systematic Investment Plan. LIC SIIP refers here, as LIC ‘Systematic Investment Insurance Plan’. It is LIC SIP Policy in simple terms

Read: LIC launches Nivesh Plus Insurance Plan – Should you opt?

Features of LIC SIIP (Systematic Investment Insurance plan) No 852


Here are the key features.

1) This is a non participating regular premium paid policy.

2) This is a ULIP plan. The proposer 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) Policy tenure is 10 to 25 years.

5) You can invest in 4 fund options.

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

7) Like any ULIP Plan, this plan too has 5 year lockin period.

8) If policy holder want to surrender this insurance plan, ULIP fund value as on date is paid, after the lock-in period of 5 years.

Eligibility to purchase LIC SIIP 852


Following is the eligibility:

1) Min age of entry – 90 days

2) Max age of entry – 65 years

3) Max Age of maturity – 85 years

4) One should propose only for themselves

Are there any riders in this LIC SIP Policy?


1) Accidental benefit rider is available as an optional rider by payment of additional premium.

2) The benefit cover under this rider shall be available only during the premium paying term of the base plan or before the policy anniversary, on which the age nearest birthday is 70 years, whichever is earlier.

3) Maximum Accident Benefit Sum Assured: An amount equal to the Basic Sum Assured under the Base Plan subject to the maximum of Rs.1.00 Crore overall limit taking all existing policies.

What are premium options available with this plan?


Proposers can pay monthly, quarterly, half yearly and yearly premiums in this plan.

What are Sum Assured Options in LIC SIIP Plan 852?


Sum assured would depend on the proposers age

1) If the proposer age is < 55 years, sum assured would be 10 times of annualized premium.

2) If the proposer age is > 55 years, sum assured would be 7 times of annualized premium.

What are the Investment Funds in LIC SIIP 852?


There are basically 4 funds available in this SIIP Plan from LIC.

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 852 of LIC?


LIC would give guaranteed additions in SIIP Plan as the percentage of the annualized premium paid at 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 – 5%

End of 10 years – 10%

End of 15 years – 15%

End of 20 years – 20%

End of 25 years – 25%

What is the date of commencement of risk?


Insurance companies keep putting various conditions to confuse policy holders. One of them is, the date of commencement of risk. In this SIIP of LIC, the date of commencement of risk is computed as below:

a) Age of entry less than 8 years – The risk would commence after 2 years from policy date or immediately completion of 8 years of age whichever is earlier.

b) Age of entry greater than 8 years – The risk would commence immediately from the date of commencement of policy.

What are various benefits available in SIIP Plan of LIC?


Here are the details of benefits:

1) Death Benefit:

a) In case of death before the commencement of risk, the amount equal to fund value would be paid.

b) In case of death after the commencement of risk, the higher of the following would be paid:




Basic Sum assured

Fund Value

105% of total premiums paid

2) Maturity Benefit:

On survival of the policy holder, fund value would be paid as maturity benefit.

What are the various charges in LIC SIIP (Systematic Investment Insurance plan) 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

First Year – 8%

2nd to 5th year – 5.5%

6th year onwards is 3%

ii) Online Sale

First Year – 3%

2nd to 5th year – 2%

6th year onwards is 1%

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 20% of annualised premium or fund value. The max is Rs 3,000.

2nd year – Lower of 15% of annualised premium or fund value. The max is Rs 2,000.

3rd year – Lower of 10% of annualised premium or fund value. The max is Rs 1,500.

4th year – Lower of 5% of annualised premium or fund value. The max is Rs 1,000.

5th year onwards – Nil

How to check LIC siip 852 calculator?


If you want to calculate premiums and benefits under LIC SIIP 852, you can check this LIC Link

Positive Factors in LIC SIIP ULIP Plan 852


1) Guaranteed additions of 5% to 25% of annualized premiums at specific intervals.

2) LIC would refund mortality charges on maturity of this insurance plan.

3) The option to choose among the 4 funds.

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

You may like: ICICI Pru launches Precious Life Term Plan – How good is this?

Hidden Factors / Negative Factors in LIC Systematic Investment Insurance plan ULIP Plan


Here are few negative factors:

1) If the age of the proposer is above 55 years, the sum assured would be only 7 times of annualized premium.

2) Guaranteed Additions indicated are paid at specific intervals, but these are paid only on annualized premium and not cumulative premium. Even if you do simple FD, you can get up to 6 to 7.5% returns per annum.

4) Premium allocation charges are high. If you have taken policy offline, the charges are as high as 8%.

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

LIC SIIP 852 – Should you invest?


As indicated in my earlier article, 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 SIIP plan of LIC. 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 whether you need this insurance cum investment scheme, you would have the answer.

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

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Suresh KP

LIC SIIP – Systematic Investment Insurance plan No 852 Review



Suresh KP

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