LIC’s Protection Plus explained: Premium options, maturity benefits and key features

LIC’s Protection Plus (Plan 886) is a non-par, linked, life, individual savings plan designed to offer both life insurance cover and long-term savings. The plan provides flexibility by allowing policyholders to choose the type of investment fund, adjust the Sum Assured, and even pay additional “top-up” premiums.

Partial withdrawals are permitted after five years from the policy’s start date. Under this plan, the proposer selects the premium amount they want to pay, based on which the Basic Sum Assured is determined. Premiums can be paid either as Regular Pay or Limited Pay.

The minimum age at entry is 18 years, while the maximum is 65 years. LIC offers multiple Premium Paying Term (PPT) options 5, 7, 10, and 15 years corresponding to policy terms of 10, 15, 20, and 25 years.

While the minimum premium varies based on premium paying term and payment mode, there is no upper limit on the maximum premium, subject to underwriting rules under the Board Approved Underwriting Policy. This makes the plan suitable for individuals seeking flexible insurance plus investment options.

The minimum basic sum assured under this plan is determined as 7 times the annual premium for those below 50 years of age, and 5 times the annual premium for those aged 50 and above. The maximum basic sum assured depends on age at entry and the selected premium paying term.

One of the standout features of LIC’s Protection Plus (Plan 886) is the refund of mortality charges at maturity. All mortality charges deducted throughout the policy term are returned to the policyholder along with the maturity benefit.