LIC Limited Premium Endowment Plan – Table 830 is participating non-linked plan that provides protection and savings together. Limited Premium Endowment Plan is conventional Endowment Assurance plan. This plan provide financial assistance for the family in case of unfortunate death of policy holder.
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.
- Minimum Age Entry for Life Assured – 18 years (completed)
- Maximum Age Entry for Life Assured
- 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.
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
- Stamp duty on policy
- 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.
Tax Implications –
Maturity claim – Maturity amount is exempted from the tax.
Death claim – Death claim received under the plan are free from taxation.
Over to you
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 term is very less.
You should not mix your insurance requirement with investment. If you are planning to take insurance you should purchase term plan. For Investment you can explore various other options such as mutual funds, PPF, equity etc.
If you have any questions about LIC Limited Premium Endowment Plan please share via comment section given below.