Last Updated on April 5, 2026 by teamtfl
🚫 Plan Withdrawn
LIC Flexi Plus (Table 811) was discontinued on 16 November 2013 — just 10 months after launch. You cannot buy this plan today. If you already hold this policy, read on for your options.
You bought it because someone you trusted — maybe your LIC agent uncle, maybe a colleague in the office canteen — told you, “ULIP mein daal do, insurance bhi milega, returns bhi.” You signed the form. Paid the premium. And then one day LIC quietly pulled the plug on the plan itself.
Now you’re stuck wondering: Is my money safe? Should I continue paying? Can I even exit?
You’re not alone. I’ve sat across the table from dozens of clients holding discontinued LIC ULIPs, and the confusion on their faces is always the same. Let me walk you through what LIC Flexi Plus actually was, why it was withdrawn, and — most importantly — what you should do if you’re still holding it.
⚡ Quick Answer
LIC Flexi Plus (Table 811) was a Unit Linked Insurance Plan launched in January 2013 and withdrawn by November 2013. It offered only two fund options (Debt and Mixed), with a maximum equity exposure of just 25%. If you still hold this policy and have completed the 5-year lock-in, you can surrender it and move your money to better-performing, more flexible instruments like index mutual funds.
What Was LIC Flexi Plus?
LIC Flexi Plus (Plan No. 811) was a Unit Linked Insurance Plan launched on 2 January 2013 under the post-2010 IRDAI ULIP guidelines. These were the “new generation” ULIPs with lower charges — LIC’s attempt at making ULIPs competitive after the IRDAI-SEBI regulatory tussle.
Here’s what it offered on paper:
- Minimum premium paying term: 5 years
- Sum assured: Higher of 10 times annual premium or 105% of total premiums paid
- Two investment fund options: Debt Fund and Mixed Fund
- Mandatory 5-year lock-in period (per IRDAI guidelines)
Think of it like buying a car that can only drive in first and second gear. Yes, technically it moves. But would you choose it for a 15-year road trip?
The Charge Structure — What LIC Took Before Your Money Got Invested
One thing LIC did right with Flexi Plus was reducing charges compared to older ULIPs. But “lower than terrible” isn’t the same as “good.”
Discontinuation Charges
If you stopped paying premiums before completing 5 years, here’s what LIC deducted:
| Policy Year of Exit | Premium up to ₹25,000/year | Premium above ₹25,000/year |
|---|---|---|
| Year 1 | 15% of AP or FV (max ₹2,500) | 6% of AP or FV (max ₹6,000) |
| Year 2 | 7.5% of AP or FV (max ₹1,750) | 4% of AP or FV (max ₹4,000) |
| Year 3 | 5% of AP or FV (max ₹1,250) | 3% of AP or FV (max ₹3,000) |
| Year 4 | 3% of AP or FV (max ₹750) | 2% of AP or FV (max ₹2,000) |
| Year 5 onwards | NIL | NIL |
AP = Annual Premium, FV = Fund Value. The discontinued fund earned SBI savings account interest (currently around 2.7% — barely beating a mattress).
Also note: the discontinued fund itself carried a 0.5% p.a. fund management charge. So even your parked money wasn’t free.
Investment Funds — Only Two Choices
| Fund | Govt/Corporate Debt | Money Market | Listed Equity | Risk Profile |
|---|---|---|---|---|
| Debt Fund | Minimum 60% | Up to 40% | Nil | Low |
| Mixed Fund | Minimum 45% | Up to 40% | 15%–25% | Low to Medium |
Notice what’s missing? A pure equity fund. The maximum equity exposure was just 25% — through the Mixed Fund. For anyone investing with a 10–20 year horizon, this was like running a marathon in bathroom slippers.
Why LIC Pulled the Plug So Quickly
LIC Flexi Plus lasted barely 10 months — launched January 2013, withdrawn November 2013. LIC doesn’t publicly explain why it withdraws plans, but the pattern is clear: plans that don’t gather enough business get quietly shelved.
With only two fund options, no pure equity choice, and competing against a market full of private insurer ULIPs offering 4-7 fund options, Flexi Plus simply couldn’t attract buyers. The “flexibility” in the name was, to put it charitably, aspirational.
ULIP Taxation — What Changed Since This Plan Launched
This is where most online reviews of LIC Flexi Plus fail you. The tax landscape for ULIPs has fundamentally changed since 2013:
| Tax Aspect | When Flexi Plus Launched (2013) | Current Rules (2026) |
|---|---|---|
| Section 80C Deduction | Available (if SA ≥ 10× premium) | Only under old tax regime. New regime (default from FY 2024-25) has no 80C. |
| Maturity Tax-Free? | Yes, under Section 10(10D) | Only if annual premium ≤ ₹2.5 lakh (for policies bought after 1 Feb 2021) |
| Capital Gains Tax | Not applicable | LTCG at 12.5% (held >1 year) if premium >₹2.5L. STCG at 20%. |
| GST on Premium | Service tax applied | NIL GST on individual life insurance premiums (from 22 Sep 2025) |
| Death Benefit | Tax-free | Still completely tax-free — no conditions, no threshold |
For existing Flexi Plus holders: Since this plan was purchased before February 2021, the old Section 10(10D) rules apply. Your maturity proceeds should be tax-free regardless of premium amount — but confirm with your tax advisor based on your specific policy terms.
Stuck with a ULIP you don’t understand?
A fee-only financial planner can evaluate your policy and map an exit strategy — without selling you another product.
What Should You Do If You Still Hold LIC Flexi Plus?
If you’re reading this in 2026, your Flexi Plus policy has long crossed the 5-year lock-in. Here are your real options:
Option 1: Surrender and redeploy. Since you’ve crossed the lock-in, there are no discontinuation charges. Take the fund value and invest it in instruments that actually match your goals — whether that’s an index fund for long-term wealth, a balanced advantage fund for moderate risk, or even a simple PPF if you want guaranteed returns. I’ve written in detail about exit strategies for mis-sold insurance policies — the framework applies here.
Option 2: Make it paid-up and wait. If your policy term hasn’t ended, you can stop paying premiums. The existing fund value stays invested (in whichever fund you chose) until maturity. But ask yourself honestly — would you voluntarily invest new money in a fund capped at 25% equity with no pure equity option? If the answer is no, why let old money suffer the same fate?
Option 3: Continue if maturity is very close. If your policy is maturing in the next 12-18 months, the switching cost and hassle may not be worth it. Let it run, collect the maturity amount, and deploy wisely.
The Bigger Lesson — Why ULIPs Keep Disappointing
Let me be clear about something people often misunderstand: financial planners are not “against” ULIPs. We’re against inflexibility disguised as investment.
Suresh (name changed), a client from Jaipur, came to me in 2019 holding three different LIC ULIPs — including a Flexi Plus. His total investment was ₹8.5 lakh over 6 years. The fund value? ₹7.2 lakh. He had actually lost money because the Debt Fund barely kept pace with charges, and the Mixed Fund’s 25% equity cap meant he missed the entire 2014-2017 bull run.
Compare this to someone who invested ₹8.5 lakh in a Nifty 50 index fund over the same period. Even with market ups and downs, they’d have been significantly ahead.
The fundamental problem with products like LIC Flexi Plus wasn’t the charges (those were actually reasonable post-2010). It was the structural inflexibility:
- Only 2 fund choices vs. thousands of mutual fund options
- Maximum 25% equity — useless for long-term wealth creation
- 5-year lock-in with penalty for early exit
- No option to switch to a pure equity fund when markets dipped
- Bundled insurance you probably didn’t need (if you already had adequate term insurance)
As the saying goes in Hindi — “Doodh ka doodh, paani ka paani” — keep insurance and investment separate. That old wisdom still holds.
LIC Flexi Plus vs. Today’s Alternatives — A Quick Comparison
| Parameter | LIC Flexi Plus (Discontinued) | Nifty 50 Index Fund + Term Plan |
|---|---|---|
| Max Equity Exposure | 25% (Mixed Fund) | 100% (your choice) |
| Fund Options | 2 | Thousands |
| Lock-in | 5 years | None (ELSS: 3 years) |
| Exit Penalty | Yes (Years 1-4) | None (exit load: 0-1%) |
| Transparency | Limited NAV disclosure | Daily NAV, full portfolio disclosure |
| Insurance Cover | Bundled (10× premium) | Separate ₹1 Cr term plan for ₹700-1000/month |
| Total Cost (Annual) | 1.35%+ (FMC + mortality + admin) | 0.1-0.2% (index fund) + term premium |
The math speaks for itself. When you separate insurance from investment, both work better — and you control the steering wheel.
Original Guest Review Note
The original 2013 review of LIC Flexi Plus was contributed by Manikaran Singal, CFPCM. This 2026 update includes current regulatory changes, tax rules, and exit guidance for existing policyholders — reflecting the latest IRDAI and Income Tax frameworks.
The best insurance products are the ones you never have to Google “how do I exit” for.
Keep insurance and investment separate. Your future self will thank you.
Still holding a mis-sold ULIP or endowment policy?
Don’t let sunk cost fallacy keep your money trapped. A proper review can save you lakhs over the next decade.
💬 Your Turn
Are you still holding an LIC ULIP you bought years ago? What’s your biggest confusion — should you surrender, continue, or just let it be? Share your situation below and I’ll try to help.
Hi Mani,
Thanks for the educating articles. I have taken Max Amsure Secured Return Builder Plan (ULIP) from Max Life Insurance since 2009. I am paying annual premium of Rs. 50000/- in increasing pattern. This is the 5th premium I am about to pay and I started having doubt on performance of the Company and the ULIP per se. Pl advice me, what would be the best course of action; to stop or continue with this. And what do I do to know my present fund value
Nice article
Dear Manikaran Singal,
Which point you consider when you write your views for LIC flexiplus? Why you are compare this product with Mutual Fund? Can you tell me why Mutual Funds segment goes down day by day? Just because of views given by you non insurance person very much highlighted more & more about mutual fund and Indian person belive on advisor like you? Who has not have idea about Investment Pattern of LIC of India. Mutual fund market also stable before CFP come in Investment Market, but when CFPs are come in Investment Market, Investment market are start collepsed. What ever you study, study material design by Western Market and not according to Indian Market. Layman can’t understand Western Market Formula, they under stand simple language rather than complicated Formulas. So when write any thing about any insurance product, 1st think from layman view angle and than write your views. CFP means Completely Failed Products of Investment Institute Market. Any Insurance Company design their product with consider layman expectation. Sorry for my view in very hard language. But because of i am layman person who understand requirement of layman person and hence offer only simple products only rather than complicated investment formulas.
Let me answer you one by one.
Q) Which point you consider when you write your views for LIC flexiplus?
A) Customer’s benefit point of view.
Q)Why you are compare this product with Mutual Fund?
A) Because this is an investment product.
Q) Can you tell me why Mutual Funds segment goes down day by day?
A) I don’t think its going down day by day. But yes many Mutual funds agent are entering into insurance market just because here they can earn more upfront commission. take the example of banks…they are happy selling insurance policies.
may i request you to provide me and readers with the “Investment pattern of LIC”. What i know about the investment pattern is that its a puppet in the hand of government…and government use this institution for funding there own requirements, making so called disinvestment process a success…
I don’t understand that linkage of Investments markets with CFP. CFP is just a certification, it doesn’t make you a good practitioner . also if someone is a good practitioner he may not be a CFP. Moreover CFP curriculum is as per indian scenario only. I encourage you to go through the study material first.
I also endorse simple products which a layman can understand better, that’s why i advise to keep insurance and investments separate. Tell me being a layman, which one is simple to chose – PPF or endowment policy?
hhello, Mr Manikaran, I want to take this insurance policy, enroll 30K+ for 12 to 15 year what would return I get, u expect means that whats the benefits is this a better a Investment plan or insurance ??
Hi Hemant,
This article is very usefull and eye opening to many as many Tax saver would be planning to invit now and they fall to the trap of this kindly of policy.
I personally wish to thank you and Manikaran for this good knowledgable article.
Sujith Kumar
Thanks Sujith for liking the article. I appreciate it.
Dear Hemantji,
Wish you happy new year 2013. I am a regular reader of your post. Some extend I don’t agree with Mr Manikaran about what he says. This is my opinion…Investment & Insurance are two different things. The job what LIC Of India is doing in Indian Insurance market is fantastic. Why ULIP with insurance is JINDAGI KE SATH BHI -JINDAGI KE BAD BHI. tell me or correct me First 5 yrs locking period means regular habit of paying premium and if the PPT is 10 /20 yrs and the policy holder survives he will get maturity amount is tax free . In case death occurs before PPT.. nominee will get Sum Insurance +. Any one situation…. no risk. Addition to this I sense that the author is anti LIC.
Vinod ji…i don’t get you. On one side you are saying that you don’t agree with me and on the other you are endorsing my statement that “Insurance and investments are two different things”. I am not anti LIC infact i also agree with you that LIC is doing a fantastic job in Indian insurance market. The reach which LIC has in india and the confidence it has gained in the mind of people is really commendable. But it was also because there was very less information flow and competition earlier.I just wanted people to think on some points before getting into any product which comes with a mix of insurance and investment.
I believe you don’t need a product to be disciplined …its all in mind and once you have developed that mindset then there would not be any problem. Before investing in any product one should be having a holistic view on his finances and do a proper financial management keeping in mind one’s current and future requirements. Do proper risk management and keep investments flexible. If i am an indisciplined investor, no 5 years lock in can make me invest for the full tenure and if i am disciplined ..then i can go with any product
another reason why indians had blind faith in LIC in the past:
till 90’s, GDP of india was around 3%, with matching inflation.
so LIC’s CAGR of 4-6% was sufficient to comfortably beat inflation.
am I correct?
If look at the charges with respect to Mutual funds here we are paying more than mutual fund brokerage charges. (Premium allocationc hage, FMV, AC, mortality etc) which will eat away your units and when compared to LIC’s ULIPS in the past most of them are not done well in the market and finally even if you invest upto 10 years finally ending up with getting principal only which we have seen recently after getting the ulips matured. Other than sec 80C benefits we can’t gain anything more from Ulips and Mutual funds stands better position if we look at long term or short term.
Money Plus Flexi Plus
Allocation charges 26.5% 7.5%
Admn charges Rs 60 pm Rs 50 pm
Fund Management 1.5% 0.6%
5,000 to 75,000 26.50% 5.00% 2.50%
Dear Anatha Krishnan, I totally agree with you on the charges that Mutual funds are cheaper than ULIP, but as you mentioned regarding the old ULIP of LIC, yes in some plans what you said was correct, that the customer is getting the principal after 4 or 5 years especially under plan called Money Plus, as you said one of the reason was charges,
But if we consider LIC old ULIP like Bima Plus launched in 2001 and the evergreen product Future plus launched in 2005 the returns are enormous, Future plus was the product which really started the boom of ULIP’S in LIC. After the intervention of IRDA from sep 1 2010, the charges of ULIP has come down drastically including, charges, commission FMC etc. Just a comparison with Old ULIP.
Money Plus Flexi Plus
Allocation charges 26.5% 7.5%
Admn charges Rs 60 pm Rs 50 pm
Fund Management 1.5% 0.6%
All investment managers and customers are considering ULIP on pre Irda regulation period, now its really good time for customers to park funds in ULIP it became more attractive, since the commission is reduced drastically the sales has come down, Being in this industry for some time i strongly suggest New ULIPS in the market is really good to invest for long term.
The greatest USP of ULIP is the switching factor which Mutual fund doesn’t have.
Dear Manikaran, Thanks for the review, But in flexi plus there is an added benefit which should be highlighted, in the event of death of the policy holder, 1. Sum assured is paid to the nominee, 2. Future premiums are waived 3. Future premiums to be paid will be credited in the policy holder account as per the prevailing NAV and on maturity will again pass to the nominee. This is a novel feature, Secondly Pension Plus the first ULIP launched by LIC after the september 2010 new ULIP guidelines in volatile market with same investment options. the current NAV of Debt fund is 12.11. I think in long run DEBT fund and LIC investments will surely give good returns to customers.
Yes Sunil you are right. I forgot to mention the death benefit. Thanks for pointing out. I agree that this is a novel feature but you also have to agree with me that more the benefits more will be the cost. The inbuilt waiver of premium and other riders will surely in turn increase the cost which will effect the returns negatively. I think this is why i don’t believe in mixing insurance with investments. The more the insurance benefits the more will be the cost and thus less returns on Investments.
I agree with you on NAV also, but NAV does not mean returns. Also we can’t say that fund will keep on performing like this. We understand that these days there’s good potential of return on debt side and due to market factors i am seeing that any investment which is into debt is giving good return these days. The same way as any investment in equity was giving good returns in 2006-07. This means that the returns are due to market factors and not due to good fund management.
My issue is with the structure of product…as i wrote in the article ” what if it stops performing later”. I have no issues in people buying life insurance for death benefits..infact every insurance policy looks good looking at death benefit. But one has to look from various other angles when one is buying insurance policy from investment perspective.
Hemant, thanks for giving me opportunity to be on TFL. It really nice to be here.
While writing this review i actually felt the positiveness came from reduction in allocation and surrender charges of ULIP. But still this non flexible structure keeps me away from such products. I feel that IRDA should again look and make these products more flexible and open for investors and should avoid hiding behind the statement that ” Insurance products are difficult to sell”. When such products are pitched as investment options than it should be comparable to them only and not to insurance products.
Thanks Manikaran for contributing this post. Its good to see that expense ratios are coming down – but I don’t like 2 things about using insurance as investment – first thing that you mentioned in your points “what if funds are not performing” & second the compensation structure “if agent sold you some policy & if he don’t advice/service your policy in future, he is not going to loose anything”.
I will appreciate if you reply to queries of TFL Readers.
Yes hemant i totally endorse your views. That’s why i say that If these products are going to be pitched as investment options IRDA should also fix some level of service quality on such things. These days there’s option to change broker in case of MFs but in case of insurances there’s no such provision.
I would be happy to answer TFL readers queries.