LIC Nivesh Plus: Returns, Charges, Features And Should You Invest?

ULIP-type investment plans are becoming increasingly popular. Today, an investor demands a product that offers both growth and protection. Insurance-linked products attempt to offer both. 

One such product is LIC Nivesh Plus. It is a single-premium ULIP that offers protection and market-linked returns. You should understand the structure, charges, and risks associated with such a product before investing.

In terms of global markets, investment in market-linked investment funds has been growing over time. Globally, regulated open-end fund assets worldwide stood at around $84.9 trillion in 2025, according to a global fund asset report published by the Investment Company Institute. Therefore, investing in LIC Nivesh Plus can be seen as relevant, and you should check whether it aligns with your investment goals before investing.

What Is LIC Nivesh Plus?

LIC Nivesh Plus is a single-premium unit-linked insurance plan offered by Life Insurance Corporation of India. Here, you will be investing a lump sum amount. The premium will be invested in market-linked funds. The plan will offer life insurance coverage, too. The returns will be based on the performance of funds and market volatility.

1. Plan structure

In this plan, a premium is paid only once, at the beginning of the policy. After deducting the charges, the units are invested in the chosen fund. Life cover is provided to the policyholder during the policy term. The fund value depends on the Net Asset Value (NAV) of the units.

The death benefits are the maximum of the sum assured or the fund value, as mentioned in the policy. The minimum policy term is 10 years. Like all ULIPs, this plan also has a five-year lock-in period. Partial withdrawal is possible only after the lock-in period.

2. Investment options

LIC Nivesh Plus has various fund options, each with varying levels of risk. Common options include:

• Bond Fund – Debt securities are the focus, which has lower risk
• Secured Fund – A combination of equity and debt, which has moderate risk
• Balanced Fund – More focus on equity, which has moderate to high risk
• Growth Fund – Mostly an equity-oriented fund, which has high growth prospects

Switching from one fund to another is possible within the policy term, subject to certain limitations.

Features And Benefits Of LIC Nivesh Plus

LIC Nivesh Plus provides investment and insurance benefits under a single plan. This plan provides market-linked returns along with life insurance cover. This plan is ideal for those seeking dual benefits from a single investment plan.

1. Market-Linked Returns

Your investment will be placed in market-linked funds, and returns are based on market conditions, either equity or debt markets. Equity-oriented funds might give higher returns, but they are not assured or guaranteed.

You can also choose from a variety of funds, and your investment can be switched from one fund to another, depending on market conditions.

2. Insurance cover

LIC Nivesh Plus also offers a life insurance policy along with investment benefits. If the policyholder dies, the nominee gets a death benefit, which is either the higher value of the policy amount or fund value, depending on policy conditions. This plan helps you secure your investment and also allows your investment to grow.

Charges And Lock-in

Charges are also significant in generating net returns. The charges of LIC Nivesh Plus are deducted from the premiums or fund values. These charges are important in wealth creation. You must be aware of the charges before investing.

A. Fund charges

LIC Nivesh Plus has several charges. These charges include premium allocation charges, fund management charges, mortality charges, and policy administration charges.

Premium allocation charges are deducted at the beginning. This reduces the investment. Fund management charges are deducted on a daily basis from the Net Asset Value. The fund management charges for LIC Nivesh Plus are up to 1.35 per cent on a per cent basis. This is within the limits set by the Insurance Regulatory and Development Authority of India for ULIPs.

Mortality charges are based on the age of the policyholder and the sum assured. These charges are for the insurance policy. Policy administration charges are also deducted.

B. Policy tenure

The policy term of LIC Nivesh Plus is at least 10 years. The policy also has a five-year lock-in period, just like any other unit-linked insurance plan. You cannot withdraw the policy during this period. You are allowed to make partial withdrawals after five years. This is an important aspect to be considered while investing.

Returns Analysis

The returns on LIC Nivesh Plus are market-linked. This means they are related to the market and depend on the type of fund one has invested in. For instance, equity-oriented funds may give higher returns, while debt-oriented funds may give lower returns. However, charges also reduce returns over time.

As LIC Nivesh Plus is a ULIP, its returns are not guaranteed. The NAV fluctuates daily. However, if one has a long-term investment, they are likely to receive smooth returns. However, if one has a short-term investment, they are likely to receive fluctuating returns.

For a better understanding, let us consider a hypothetical example:

Investment – INR 1,00,000 (Single Premium)

Tenure – 10 years

Charges – aligned to ULIP structure

Hypothetical returns under different scenarios

Risks To Consider

Investment in LIC Nivesh Plus provides market-linked returns along with insurance benefits. Before investing, one must be aware of the risks.

1. Market risk

The returns from investing in the LIC Nivesh Plus plan are market-dependent. The value of an equity-oriented fund can go down in the short term in case of a fall in the market.

As the investment is in a ULIP plan, the returns are not guaranteed. Keeping the investment for a longer period will reduce the volatility, but the market risk will always be there.

2. Cost structure

The cost of investing in the LIC Nivesh Plus plan will directly affect the returns on investment. Premium allocation, fund management, and mortality charges are applicable while investing in the plan.

Investments in the plan will reduce the amount invested, which will directly affect the value of the investment. Investors must be aware that investing in other options, such as Grip Invest, will provide better benefits compared to investing in an insurance plan.

Conclusion

LIC Nivesh Plus is an investment plan that provides the benefits of life insurance as well as market-linked investments. The plan provides the benefits of a single premium plan, along with the options of investing in various funds. The returns are market-linked, meaning they are not guaranteed.

It is important to first analyse whether the plan will be beneficial in the long run or not. If you are looking to invest in a plan that provides the benefits of both life insurance and investment, then the plan can be considered. On the other hand, depending only on life insurance products can be detrimental.

For a balanced investment, it is generally advised to include different classes of assets in the investment plan. Instead of sticking to traditional ULIPs, other options can be considered, which can provide better benefits in the long run. Platforms such as Grip Invest can be utilised to manage the investments according to the objectives.

FAQs On LIC Nivesh Plus

References:

1. ICI, accessed from: https://www.ici.org/statistical-report/ww_q4_25

Author: Grip Invest Editorial Team The Grip Invest Editorial Team is a group of Chartered Accountants, MBA (Finance) graduates, and Qualified Research Analysts dedicated to helping you invest smarter. We dive deep into India's fixed income landscape to deliver content that is accurate, up-to-date, and easy to understand. Whether you're exploring bonds, fixed deposits, or other fixed income opportunities, our guides cut through the noise and give you the clarity to make better financial decisions.

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