LIC Protection Plus Plan 886: Premium, Benefits, Charges & Returns
LIC Protection Plus Plan 886 is a market-linked LIC insurance plan that combines life insurance and investment.
If you are looking for the latest LIC ULIP plan, this is one of the plans you should know about.
In this guide, I will explain LIC Protection Plus in very simple language — premium, policy term, life cover, funds, withdrawals, charges, returns and who should consider it.
Important: This is a market-linked plan. Your investment value can go up or down. Returns are not guaranteed.
LIC Protection Plus Plan 886 — Quick Facts
| Feature | Details |
|---|---|
| Plan | LIC’s Protection Plus |
| Plan Number | 886 |
| UIN | 512L361V01 |
| Type | Linked, Non-Participating, Individual Life Savings Plan |
| Minimum entry age | 18 years |
| Maximum entry age | 65 years depending on premium-paying term |
| Policy term | 10, 15, 20 or 25 years |
| Premium-paying term | 5, 7, 10 or 15 years |
| Minimum premium | ₹3,000/month |
| Life cover | Available throughout policy term |
| Investment | Market-linked |
| Fund options | 6 |
| Partial withdrawal | After 5 years, subject to conditions |
| Top-up premium | Available |
| Maximum premium | No fixed maximum, subject to underwriting |
LIC officially launched Protection Plus in December 2025 and lists it as Plan 886 with UIN 512L361V01.
What is LIC Protection Plus Plan 886?
In simple terms:
LIC Protection Plus = Life Insurance + Market-Linked Investment
You pay a premium.
A portion of the premium is used according to the policy’s applicable charges and the remaining amount is allocated to your chosen investment fund.
The value of your investment then depends on the performance of that fund.
So this is not an FD.
It is also not a traditional LIC policy where you simply receive a fixed maturity amount.
The investment risk is borne by the policyholder.
Is LIC Protection Plus a ULIP?
Yes.
Protection Plus is a Unit Linked Insurance Plan (ULIP).
That means your money is invested in market-linked funds while the policy also provides life insurance cover.
This is why you may see people searching for:
- LIC ULIP Plan 886
- LIC ULIP Protection Plus
- LIC Protection Plus ULIP
- LIC Plan 886
- LIC’s new ULIP plan
They are referring to the same product.
You can read our complete guide here:
[LIC ULIP Plan 2026 – Complete Guide]
How much is the minimum premium?
The minimum premium depends on your Premium Paying Term (PPT).
For 5, 7 and 10-year PPT
| Payment mode | Minimum premium |
|---|---|
| Monthly | ₹5,000 |
| Quarterly | ₹15,000 |
| Half-yearly | ₹30,000 |
| Yearly | ₹60,000 |
For 15-year PPT
| Payment mode | Minimum premium |
|---|---|
| Monthly | ₹3,000 |
| Quarterly | ₹9,000 |
| Half-yearly | ₹18,000 |
| Yearly | ₹36,000 |
LIC’s brochure specifies these minimum premiums and the applicable payment modes.
Example
If you choose a 15-year premium-paying term and pay:
₹3,000 per month
your annual premium would be:
₹36,000
How long can the policy continue?
Protection Plus offers policy terms of:
10 years
15 years
20 years
25 years
The available premium-paying term depends on the policy term.
| Premium Paying Term | Available Policy Terms |
|---|---|
| 5 years | 10, 15, 20, 25 years |
| 7 years | 10, 15, 20, 25 years |
| 10 years | 10, 15, 20, 25 years |
| 15 years | 15, 20, 25 years |
The maximum maturity age can go up to 90 years for a 25-year policy term.
What is the entry age for LIC Protection Plus?
The minimum entry age is:
18 years
The maximum entry age depends on the premium-paying term.
| Premium Paying Term | Maximum Entry Age |
|---|---|
| 5 years | 50 years |
| 7 years | 65 years |
| 10 years | 65 years |
| 15 years | 65 years |
So a 55-year-old, for example, cannot choose the 5-year premium-paying option.
The exact eligibility is subject to the policy conditions and underwriting.
How much life cover does Protection Plus provide?
This depends on your age, premium and premium-paying term.
The minimum Basic Sum Assured is:
If entry age is below 50
7 × Annualized Premium
If entry age is 50 or above
5 × Annualized Premium
The maximum Sum Assured depends on age, premium and premium-paying term.
Example
Suppose your annual premium is:
₹1,00,000
If you enter before age 50, the minimum Basic Sum Assured can be:
₹7 lakh
The actual Sum Assured you can choose will depend on the applicable rules and underwriting.
What investment funds are available?
This is one of the important features of Protection Plus.
There are six investment funds:
- Bond Fund
- Secured Fund
- Balanced Fund
- Growth Fund
- Flexi Growth Fund
- Flexi Smart Growth Fund
The funds have different investment approaches and levels of market exposure.
The important point is:
Your choice of fund affects the investment risk and potential return.
You should therefore not look at Protection Plus simply as “an LIC policy.”
It is also a market-linked investment.
Can I change my investment fund?
Protection Plus provides flexibility to choose the investment fund and switch between funds according to the policy conditions.
This can be useful if your investment preference changes over time.
For example, someone may prefer a more conservative fund initially and later choose a fund with greater market exposure.
However:
Fund switching does not remove market risk.
Does LIC Protection Plus give guaranteed returns?
No.
This is probably the most important thing to understand.
Protection Plus is a market-linked ULIP.
Therefore:
Returns are not guaranteed.
If the underlying investments perform well, your fund value can increase.
If markets fall, your fund value can decrease.
Don’t buy this policy assuming:
“LIC will give me 8% or 10% guaranteed.”
That is not how a ULIP works.
LIC itself states that the investment risk in the investment portfolio is borne by the policyholder.
What do I get at maturity?
If you survive until the end of the policy term and the policy is in force, the maturity benefit is based on the:
Unit Fund Value
This consists of the applicable Base Premium Fund Value and Top-up Premium Fund Value.
LIC also provides for a refund of mortality charges at maturity, subject to the policy conditions.
So your maturity amount is not a fixed amount printed today.
It depends on the fund value at maturity.
What happens if I die during the policy?
Protection Plus provides a death benefit to the nominee, subject to the policy terms.
The death benefit is based on the applicable policy formula and includes comparison between the Basic Sum Assured, fund value and the applicable premium-related amount.
The exact calculation can also be affected by withdrawals and top-up premiums.
This is why the benefit illustration is important when buying the policy.
Can I withdraw money from LIC Protection Plus?
Yes — but not immediately.
There is a 5-year lock-in.
No partial withdrawal is allowed during the first five years.
After five years, partial withdrawals are permitted subject to the conditions of the policy.
The maximum withdrawal percentage increases with the policy year:
| Policy year | Maximum withdrawal |
|---|---|
| 6th–10th | 15% |
| 11th–15th | 20% |
| 16th–20th | 25% |
| 21st–25th | 30% |
Other conditions apply, including requirements relating to the minimum balance remaining in the fund.
Simple takeaway
Don’t put money into a ULIP that you may need next year.
Think of Protection Plus as a long-term investment.
Can I pay extra money into the policy?
Yes.
Protection Plus allows Top-up Premiums, subject to the policy conditions.
This means you can put additional money into the policy over and above your regular premium.
The minimum top-up premium is:
₹1,000
Top-up premiums are also subject to the applicable conditions and charges.
What are the charges in LIC Protection Plus?
This is a section I strongly recommend keeping on your page.
Don’t just talk about benefits.
People searching for LIC Protection Plus charges want to know what actually gets deducted.
1. Premium Allocation Charge
A portion of the premium can be deducted before the remaining amount is allocated to the investment fund.
The exact charge depends on the year and mode of purchase.
2. Fund Management Charge
The Fund Management Charge is:
1.35% per year
for the six regular funds.
For the Discontinued Policy Fund, it is 0.50% per year.
3. Policy Administration Charge
There is no policy administration charge during the first five years.
It starts from the sixth policy year and increases thereafter according to the policy schedule.
4. Mortality Charge
This is the cost associated with providing the life insurance cover.
The amount depends on factors such as age and the applicable Sum at Risk.
5. Other charges
There can also be charges relating to:
- Partial withdrawals
- Discontinuance
- Policy alterations
- Applicable taxes
The exact charges should be checked in the latest LIC brochure and benefit illustration.
LIC Protection Plus: Example Illustration
Let’s take a simple example.
Suppose someone:
Age: 35 years
Annual premium: ₹40,000
Policy term: 20 years
Premium-paying term: 15 years
An illustration in the LIC sales material shows fund values under assumed investment returns of 4% and 8%. It is important to understand that these are illustration assumptions, not guaranteed returns.
The example shows a maturity benefit of approximately:
₹7.81 lakh at 4% assumed return
and
₹13.20 lakh at 8% assumed return.
The actual result will depend on the policy, charges, fund performance and other applicable conditions.
This is exactly why you should ask for the personalised benefit illustration before buying.
LIC Protection Plus vs FD
These are very different products.
| LIC Protection Plus | FD | |
|---|---|---|
| Investment | Market-linked | Fixed interest |
| Life insurance | Yes | No |
| Returns guaranteed | No | Interest rate fixed as per FD |
| Market risk | Yes | No market-linked risk |
| Liquidity | Limited initially | Generally easier |
| Purpose | Long-term investment + insurance | Savings |
Simple answer
If you want predictable returns and simplicity, an FD may be more suitable.
If you want market-linked investment plus life insurance, Protection Plus may be worth considering.
LIC Protection Plus vs Mutual Fund
This is another important comparison.
Mutual Fund
Mainly an investment product.
Protection Plus
Investment + life insurance.
A mutual fund generally gives you a much wider range of investment choices.
A ULIP gives you investment funds within the insurance policy and also provides life cover.
So don’t compare them only on:
“Which gave higher returns?”
Compare:
- Investment return
- Charges
- Life cover
- Liquidity
- Lock-in
- Tax treatment
- Your investment horizon
For a detailed comparison:
[LIC ULIP vs Mutual Fund vs FD →]
Is LIC Protection Plus better than a traditional LIC policy?
Not necessarily.
It is designed for a different purpose.
Traditional LIC plans may offer guaranteed benefits and/or bonuses depending on the product.
Protection Plus is:
Market-linked
So if you want a more predictable benefit structure, compare it with traditional LIC plans.
If you are comfortable with market-linked investment and want insurance + investment in one product, Protection Plus becomes a different proposition.
Who should consider LIC Protection Plus?
Protection Plus may be worth considering if you:
✓ Have a long investment horizon
✓ Can stay invested for at least five years
✓ Understand market risk
✓ Want life insurance and investment in one policy
✓ Are comfortable with market-linked returns
✓ Have already considered your liquidity needs
Who should think twice before buying?
Protection Plus may not be suitable if:
✕ You need guaranteed returns
✕ You need your money in the next 1–3 years
✕ You cannot tolerate market fluctuations
✕ You don’t understand ULIP charges
✕ You are buying it only because someone promised a fixed return
✕ You need a very large amount of life cover
For large life protection needs, compare a dedicated term insurance plan as well.
Is LIC Protection Plus worth considering?
The short answer:
It depends on your objective.
Protection Plus is not automatically better than an FD, mutual fund or traditional LIC policy.
It is a specific product for someone looking for:
Life insurance + market-linked investment
If that is what you need, it is worth comparing.
Before buying, ask for the personalised illustration and check:
1. How much premium will I pay?
2. What life cover will I get?
3. What charges will apply?
4. Which fund will my money be invested in?
5. What happens if I stop paying?
6. When can I withdraw?
7. What could my fund value be under different scenarios?
Frequently Asked Questions
Is LIC Protection Plus Plan 886 a ULIP?
Yes. It is a linked, market-linked life insurance savings plan.
What is the minimum premium for LIC Protection Plus?
The minimum is ₹3,000 per month for the 15-year premium-paying term. For 5, 7 and 10-year premium-paying terms, the minimum monthly premium is ₹5,000.
What is the policy term?
The policy term can be 10, 15, 20 or 25 years, subject to the applicable premium-paying term.
Is Protection Plus return guaranteed?
No. It is market-linked and investment risk is borne by the policyholder.
Can I withdraw money after 5 years?
Yes, partial withdrawals are allowed after five years, subject to the policy conditions.
How many investment funds are available?
There are six funds: Bond, Secured, Balanced, Growth, Flexi Growth and Flexi Smart Growth.
Can I pay extra money?
Yes. The policy allows Top-up Premiums, subject to the applicable conditions.
What happens at maturity?
The applicable Unit Fund Value is payable, along with the mortality-charge refund provided under the policy terms.
Is LIC Protection Plus better than an FD?
Not necessarily. An FD and a ULIP have different objectives. Compare them based on your need for guaranteed interest, market-linked growth, liquidity and life cover.
Should you buy LIC Protection Plus Plan 886?
Don’t decide based on the name LIC alone.
First decide what you need.
If you want:
Insurance + market-linked investment + long-term investment
then Protection Plus may be worth considering.
If you want:
Guaranteed returns
look at other options.
If you want:
Only life insurance
compare a term insurance plan.
If you want:
Only investment
compare ULIPs with mutual funds and other investment options.
Want help comparing your options?
[Get a LIC Protection Plus Illustration →]
Or start with our complete guide:
[LIC ULIP Plan 2026: Complete Guide →]
If you’re considering LIC’s current ULIP, read:
[LIC Protection Plus Plan 886 – Complete Guide →]
And if you’re still deciding whether a ULIP is right for you:
[LIC ULIP Plan – Complete Guide →]
Calculate your estimated fund value.
[Calculate My LIC ULIP →]
Important note
LIC Protection Plus is a market-linked insurance product. The investment risk is borne by the policyholder and the value of units can rise or fall. The information above is for general understanding and does not replace the official policy document or personalised benefit illustration. Please check the latest LIC brochure and policy terms before purchasing.
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