LIC New Limited Premium Endowment Plan – Review

Limited Premium Endowment Plan

LIC is about to launch Limited Premium Endowment Plan – Table 830. Limited Premium Endowment Plan will be conventional with-profits Endowment Assurance plan.

Let’s discuss and review LIC Limited Premium Endowment Plan (Table 830) in detail.

LIC Limited Premium Endowment Plan

Premium Paying Term:-

Premium paying term will be limited in this plan, means if you have opted for policy term 16 years you need not to pay premium for full 16 years. Premium payment will be limited to 8 years or 9 years.

Eligibility Conditions:-

  • Minimum Age Entry for Life Assured – 18 years (completed)
  • Maximum Age Entry for Life Assured

          Limited Premium Endowment Plan

  • Policy Term – 12,16 or 21 Years
  • Policy paying term – 8 or 9 Years
  • Minimum Sum Assured – 3,00,000 Rs/-
  • Maximum Sum Assured – No limit

The benefits and other details of the plan are given below.

Benefits:-

Benefit payable on Death:

On death of the life Assured during the policy term, the Death Benefit, defined as sum of  “Sum Assured on Death” and vested Simple Revisionary Bonuses and Final Additional bonus, if any, shall be payable.

Where “Sum Assured on Death” is defined as the higher of 10 times of annualized premium or absolute amount assured to be paid on death i.e. 125% of the Basic Sum Assured.

This death benefit shall not be less than 105% of all the premiums paid as on date of death.

The premiums mentioned above exclude taxes (including service tax), extra premium and rider premium(s), if any.

Survival Benefits payable on maturity:

On survival to the end of the policy term, “Sum Assured on Maturity” along with vested simple revisionary bonuses and Final Additional bonus, if any, shall be payable, where Sum Assured on Maturity is equal to Basic Sum Assured.

 Accidental Death and Disability Benefit Rider:

LICs Accident & Death and Disability Benefit Rider (AD&DB) is available as an optional rider by payment of additional premium. This rider can be opted for at any time within the premium paying term of the Basic Plan provided the outstanding premium paying term is at least 5 years The benefit cover under this rider shall be available during the policy term or before the policy anniversary on which the age nearer birthday of the Life Assured is 70 years, whichever is earlier.

Cooling Off Period:

If a policy holder is not satisfied with the Terms and Conditions & the policy, he/she may return the policy to the Corporation within 15 days from the date & receipt of the policy. The refund of premium to the Policyholder shall be subject to following conditions

  1. Stamp duty on policy
  2. Actual cost of medical examination and special reports, if any 

Premium ready racknor or premium rates of LIC Limited Premium Endowment Plan is available here.

LIC Endowment Plan Table 830

At first instance this plan seems to be attractive, however please remember this is endowment plan and history says endowment plan gives return in range of 5-7% only. Although it is said that it is limited premium plan but difference between, premium paying term and policy tem is very less.

For more details, let’s wait and watch, till this plan gets launched by LIC.

Article by Raviraj

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