LIC’s Limited Premium Endowment Plan is a participative non-associated plan that provides both security and investment under a single umbrella. The plan supplies high-value financial assistance to the policy holder’s family in the instance of a premature demise provided the death occurs during the active course of the plan. Moreover, on the successful completion of the plan, the Life Assured is benefitted with lump figure value in the form of maturity benefits. The policyholder could also benefit from the loan facilities provided under the plan.
Maturity Benefits in LIC’s Limited Premium Endowment Plan
The Life Assured would be provided attractive “Sum Assured on Maturity” on the maturation of the policy. This Maturity Sum Assured would be equivalent to Basic Amount Guaranteed, added with vested Simple Reversionary dividends and any Closing Added bonus. The entire amount would be provided in lump value provided the Life Assured remains alive till the closing of the policy tenure and he/she has paid up entire due premiums in the course of the policy term.
Death Benefits in LIC’s Limited Premium Endowment Plan
If the Life Assured suffers an untimely demise in the course of the active LIC Limited Premium Endowment plan then the beneficiary would be supplied high-value Death Benefits. This death benefit would be provided on the condition that all the premium payments have been paid prior to the death of the policyholder. This death benefit amount is termed as “Sum Assured on Death and would include vested Simple Reversionary Bonuses along with any applicable Final Added bonus. Here, “Sum Assured on Death” would be 10 times of annualized premium or Guaranteed Amount Assured on Maturity- whichever is greater. That is, the beneficiary would receive Basic Amount Guaranteed or Absolute Amount Guaranteed comprising of 125 percent of Basic Amount Guaranteed. In any instance, the death benefit would always remain equal to or more than 105 percent of entire premium amounts remunerated till the demise date.
Participation in Profits
The LIC Corporation would provide its policyholders with added benefits in the form of participation in profits under plan 830. Under this benefit, the Life Assured of the active plan would enjoy Simple Reversionary Bonuses according to the profits experienced by the Corporation.
The LIC Limited Payment Endowment Plan is also eligible for Final (Added) Bonus in the plan year that results in policy claim due to maturity or death.
Optional Benefit
The Life Assured could opt for the subsequent Rider benefit(s):
- LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V01)
- LIC’s New Term Assurance Rider (UIN: 512B210V01)
Rider amount guaranteed would always remain less than the basic amount guaranteed.
Policy Loan
Life Assured could benefit from a loan against the plan only if the plan has attained a specific surrender value. This loan is subjected under LIC terms and conditions and may change in the course of policy tenure.
Surrender Value
The LIC table 830 would assume a surrender value after the Life Assured had paid complete premiums for 24 months duration. The Assured Surrender Value would be a percentage of complete paid premiums and would exclude all rider premiums and extra premiums.
Policy Eligibility for LIC’s Limited Premium Endowment Plan
| Smallest Basic Amount Guaranteed | Rs. 300,000 |
| Highest Basic Amount Guaranteed | Boundless |
| Policy Tenure | Life Assured could buy plans for tenures of 12, 16 and 21 years |
| Premium Paying Tenure | Premium paying terms are fixed at 8 and 9 years |
| Lowest Eligibility Age | To be eligible for the plan the participant must be minimum 18 years of age. |
Premium Payments
The Life Assured could pay the premiums on a regular basis in the course of premium paying duration on the annual, bi-annual, quarterly or monthly basis (via ECS only) or could also opt for earnings deduction over policy tenure.
Grace Period
Grace duration of one month is provided for premium payments on the annual and bi-annual basis under LIC Limited Premium Endowment Plan. Grace duration of 15 days is provided for payment of monthly premiums and quarterly premiums.
Cooling Off Period
The policy provides a 15 day cooling off duration within which the Life Assured could return back the policy if he/she feels unsatisfied with its “Terms and conditions”. This cooling off duration becomes active from the first day of policy purchase.
Revival
The LIC Limited Payment Endowment plan would assume a lapse condition if the Life Assured fails to pay the premium amounts for two consecutive years. However, if the Life Assured pays the entire policy premiums inside the twenty-four month duration of lapsed premium (prior to the termination of policy term) then he/she can once again revive the plan and enjoy the various associated benefits. To get a full revival of the policy the Life Assured would have to pay the rate of interest on the defaulted premiums. The rider if any could be activated along with the Endowment Plan and not in isolation.
