LIC Protection Plus Plan 886: Complete Guide to Benefits, Features & Eligibility (2025)
- Dipti R Barik
- 3 days ago
- 5 min read
Updated: 9 hours ago
LIC Protection Plus (Plan No. 886) is a new Unit Linked Insurance Plan (ULIP) that combines life insurance with investment options. It will be available starting December 3, 2025. This plan offers you both financial security and the chance to grow your wealth through market-linked returns. It is an excellent choice for anyone looking for protection and growth in their investments.
What is LIC Protection Plus?
LIC Protection Plus is a simple savings plan that also provides life insurance. This plan helps you save money while keeping you covered throughout the policy term. You can find it under the Unique Identification Number (UIN) 512L361V01. You can purchase this plan either offline through agents or intermediaries, or online at the official LIC website.
This plan allows you to choose your premium amount, Basic Sum Assured Multiple, Premium Paying Term, and Policy Term within certain limits. This flexibility helps you align the plan with your financial goals.
Other ULIP Plans of LIC of India: LIC's Index Plus (Plan 873), LIC's SIIP (Plan 752), LIC's Nivesh Plus (Plan 749)
Flexible Premium Payment Options
LIC Protection Plus offers remarkable flexibility in premium payment with both Regular Pay and Limited Pay options. Policyholders can choose from multiple payment frequencies, including Yearly, Half-Yearly, Quarterly, and Monthly (NACH). The minimum premium varies based on the Premium Paying Term:
For 5, 7, and 10-year PPT: Monthly ₹5,000, Quarterly ₹15,000, Half-yearly ₹30,000, Yearly ₹60,000
For 15-year PPT: Monthly ₹3,000, Quarterly ₹9,000, Half-yearly ₹18,000, Yearly ₹36,000
Multiple Policy Term Options
The plan provides various combinations of Premium Paying Terms and Policy Terms to suit different life stages and financial objectives:
5-year PPT: Policy terms of 10, 15, 20, or 25 years
7-year PPT: Policy terms of 10, 15, 20, or 25 years
10-year PPT: Policy terms of 10, 15, 20, or 25 years
15-year PPT: Policy terms of 15, 20, or 25 years
Six Investment Fund Choices
LIC Protection Plus allows policyholders to invest in one of six segregated funds, each designed for different risk appetites and investment goals:
Bond Fund: Low risk, minimum 60% in government/corporate debt securities
Secured Fund: Lower to medium risk, balanced between equity (15-55%) and debt (45-85%)
Balanced Fund: Medium risk, equal proportion in equity (30-70%) and debt (30-70%)
Growth Fund: High risk, primarily equity-focused (40-80%)
Flexi Growth Fund: Very high risk, 40-100% in NSE Nifty 100 Index stocks
Flexi Smart Growth Fund: Very high risk, 40-100% in NSE Nifty 50 Index stocks
Eligibility Criteria for LIC Protection Plus
Age Requirements
Minimum Entry Age: 18 years (completed)
Maximum Entry Age: Varies by Premium Paying Term
5-year PPT: 50 years
7, 10, and 15-year PPT: 65 years
Maximum Maturity Age:
10-year policy term: 75 years
15-year policy term: 80 years
20-year policy term: 85 years
25-year policy term: 90 years
Sum Assured Requirements
The Basic Sum Assured equals the Annualised Premium multiplied by the Basic Sum Assured Multiple. The minimum Basic Sum Assured is:
7 times the Annualised Premium (for entry age below 50 years)
5 times the Annualised Premium (for entry age 50 years and above)
Maximum Basic Sum Assured Multiple varies based on age, premium amount, and Premium Paying Term, ranging from 7 to 40 times the Annualised Premium.
Optional Rider Benefit
LIC Protection Plus offers an optional Accidental Death Benefit Rider (UIN: 512A211V02) that can be opted for at policy inception or any policy anniversary. This rider provides an additional payout equal to the Accident Benefit Sum Assured if death occurs within 180 days of an accident. The rider is available with:
Minimum Accident Benefit Sum Assured: ₹10,000
Maximum Accident Benefit Sum Assured: Equal to Basic Sum Assured, subject to ₹100 lakhs overall limit
Charges and Transparency
LIC Protection Plus maintains transparency with clearly defined charges:
Premium Allocation Charge: 3-8% for offline sales, 1-3% for online sales (first 5 years)
Mortality Charge: Age-specific cost deducted monthly
Fund Management Charge: 1.35% per annum of the Unit Fund for all fund types
Policy Administration Charge: Applicable from the 6th year onwards, starting at ₹85-100 per month
Switching Charge: First 4 switches per year free; ₹100 per subsequent switch
Comprehensive Benefits Under LIC Protection Plus
Death Benefits
In case of the unfortunate demise of the Life Assured before maturity while the policy is in force, the nominee receives the highest of:
Basic Sum Assured (reduced by partial withdrawals in the preceding two years)
Base Premium Fund Value
105% of Total Base Premiums paid
Additionally, if Top-up premiums have been paid, the highest of the Total Top-up Sum Assured, the Top-up Premium Fund Value, or 105% of the Total Top-up Premiums is also payable.
Maturity Benefits
Upon survival of the Life Assured to the stipulated Date of Maturity, the entire Unit Fund Value (sum of Base Premium Fund Value and Top-up Premium Fund Value) is payable.
Unique Refund of Mortality Charge
One of the standout features of LIC Protection Plus is the refund of all mortality charges deducted during the policy term, payable along with the maturity benefit. This ensures that the cost of life insurance cover is returned to the policyholder at maturity, making it a desirable proposition
Flexibility Features
Top-Up Premium Option
Policyholders can pay voluntary Top-up premiums during the policy term (except in the last 5 years) to boost their investment. Each Top-up premium has a Top-up Sum Assured equal to 1.25 times the Top-up Premium paid, with a minimum of ₹1,000.
Partial Withdrawals
After the 5-year lock-in period, partial withdrawals are permitted from the 6th policy year onwards. The maximum withdrawal percentage increases progressively from 15% in years 6-10 to 30% in years 21-25.
Fund Switching
Policyholders can switch between the six available fund types throughout the policy term, with four free switches allowed per year. This feature enables dynamic portfolio management in response to changing market conditions and financial goals.
Revival and Surrender Options
If premiums are discontinued, the policy can be revived within 3 years from the date of the first unpaid premium. For policies discontinued within the 5-year lock-in period, funds are transferred to a Discontinued Policy Fund with a guaranteed minimum interest rate of 4% per annum.
Surrender is allowed at any time, though policies surrendered during the lock-in period are transferred to the Discontinued Policy Fund until the lock-in period expires.
Why Choose LIC Protection Plus?
LIC Protection Plus stands out as a comprehensive financial solution that addresses multiple needs simultaneously. The combination of life insurance protection, investment flexibility through six fund options, refund of mortality charges at maturity, and tax benefits makes it an attractive proposition for individuals aged 18-65 seeking long-term wealth creation with insurance coverage.
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