LIC Protection Plus Plan 886 – Full Details, Benefits, Features & Calculator Guide

Think Beyond The Return With LIC’s New-Age Linked Insurance Plan

LIC has launched a modern & flexible life insurance product called LIC Protection Plus Plan 886.
This is a Non-Par, Linked, Life Insurance & Savings Plan specially designed for customers who want:

• Life protection

• Market-linked investment growth

• Flexible premium and fund options

• Long-term wealth creation

InsuranceJano brings you complete details of LIC Plan 886 in simple and easy language.

What is LIC Protection Plus Plan 886?

LIC Protection Plus 886 is a ULIP-type plan (Unit Linked Insurance Plan).
Your premium is invested in LIC’s various funds like Bond, Balanced, Growth etc.

This plan gives:

✔ Life cover
✔ Market-linked returns
✔ Flexibility to switch funds
✔ Partial withdrawals
✔ Option to increase/decrease Sum Assured
✔ Optional Accidental Death Rider

It is a perfect combination of Protection + Investment + Flexibility.

Key Features of LIC Plan 886

Fund Options in LIC Protection Plus 886

You can invest in any of these six funds:

1. Bond Fund – Safe, stable, low-risk

2. Secured Fund – Mix of debt + little equity

3. Balanced Fund – Medium risk, well-diversified

4. Growth Fund – High equity, long-term returns

5. Flexi Growth Fund – Dynamic asset allocation

6. Flexi Smart Growth Fund – Tactical, market-driven strategy

You can invest 100% in Equity, depending on the fund choice.
LIC also provides 4% guaranteed interest in the Discontinued Policy Fund.

Premium Options – Full Flexibility

1. Base Premium

Regular premium paid yearly/half-yearly/quarterly/monthly.

2. Top-Up Premium

You can invest extra money anytime to grow your fund value faster.

Important Plan Options

✔ Fund Switching

– Unlimited switches allowed
– First 4 switches free every year

✔ Settlement Option

You can take maturity benefit in monthly/quarterly instalments.

✔ Increase in Sum Assured

– Allowed after marriage, childbirth, adoption
– Within 12 months of event

✔ Decrease in Sum Assured

– Allowed as per LIC rules for an active policy

✔ No Admin Charges for 5 Years

This helps increase early fund accumulation.

Death Benefit Under Plan 886

Nominee gets the highest of:

1. Basic Sum Assured (minus recent withdrawals)

2. Base Premium Fund Value

3. 105% of all premiums paid

 If Accidental Rider is added, extra benefit is paid.

This ensures strong financial protection.

Maturity Benefit

On surviving the policy term:

Maturity Amount = Unit Fund Value

You can receive:

• Lump sum

• Or instalments (Settlement Option)

Partial Withdrawal – Liquidity After 5 Years

This helps in emergency situations without breaking the policy.

Eligibility – Quick View

Example – How LIC Protection Plus 886 Works?

A 30-year-old person chooses:

• Sum Assured: ₹20,00,000

• Policy Term: 20 years

• PPT: 20 years

• Fund: Balanced + Growth (50:50)

If death occurs during the term:

Nominee receives highest of:

• ₹20,00,000

• Fund Value

• 105% of total premium paid

If policyholder survives full term:

He receives Unit Fund Value — depending on market returns.

This plan works as:

✔ Life cover
✔ Wealth creation
✔ Flexible investment
✔ Emergency withdrawal support

Advantages of LIC Protection Plus 886

✔ Market-linked long-term growth

✔ High life cover

✔ Six fund options

✔ Partial withdrawal after 5 years

✔ Top-up premium available

✔ Increase/decrease of Sum Assured

✔ 4 free fund switches

✔ No admin charges for 5 years

✔ Optional accidental rider

Who Should Buy LIC Plan 886?

This plan is ideal for:

• Young professionals

• Parents planning long-term goals

• Market-aware investors

• People who want investment + insurance

• Individuals needing emergency liquidity

• Anyone looking for flexible ULIP-like plans

FAQ – LIC Protection Plus Plan 886

1. Is LIC Plan 886 guaranteed?

No, returns depend on market performance.

2. Is this a ULIP?

Yes, it is a linked plan similar to ULIP.

3. When can I withdraw money?

After 5 policy years.

4. How many free switches are available?

4 per year.

5. What is the maturity benefit?

You receive the Unit Fund Value.

6. Is rider available?

Yes, Linked Accidental Death Benefit Rider.

7. Can I increase my coverage?

Yes, after marriage/childbirth/adoption.

Conclusion

LIC Protection Plus Plan 886 is a powerful and flexible linked insurance plan designed for today’s generation.
It offers:

• Solid life protection

• Long-term wealth creation

• Fund choices

• Liquidity

• Premium flexibility

If you want a plan that grows your money and protects your family at the same time, LIC Protection Plus 886 is an excellent choice.

Others LIC ULIP Plans:

•  Nivesh Plus 749
•  SIIP ULIP Plan 752
•  Nivesh Plus 849
•  SIIP ULIP Plan 852
•  New Pension Plus 867
•  Index Plus Plan 873
•  Protection Plus Plan 886