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LIC Premium Endowment Plan

LIC Premium Endowment Plan has been withdrawn by LIC and is not available for sale and purchase.

LIC has always been one of the most trusted life insurance companies in India. The choices for insurances and getting benefits out of it are the main reasons why people tend to select this one over others. Citizens can find their particular one after reading the terms and conditions provided to them. Recently, LIC'S Limited Premium Endowment Plan is gaining popularity due to its dual objectives. It provides the user an opportunity to save and find protection at the same time.

What Is LIC Premium Endowment Plan?

This plan has double roles to play. Firstly, this plan is applicable for safeguarding a family after the untimely death of the policyholder. Secondly, after maturity, it provides a handsome amount of money to the policyholder. After the end of each year, this policy has to offer a bonus amount which will be added with the main amount.

The name itself suggests that this plan is a limited period offer. The meaning is the premiums that need to be paid are limited. After the end of certain years, the policyholder doesn't need to pay them anymore. This is one of the most attractive features of this plan. For example, if this policy is going to mature after 12 years then the policyholder has to pay premiums for at least 8 years. After that time period, they don't have to bear the payments. The amount of the actual policy will be paid fully if the policyholder dies unnaturally before maturity and also if it matures naturally.

Appropriate Age For Application:

‘The earlier, the better' is the appropriate thing to say here. Anyone can apply to this policy after he/she become 18 years old. The maximum year to apply to this premium depends on the various maturity schemes it has to offer.

  • Policy term of 12: Here, the policyholder can choose the premium years between 8 or 9 years. In the 8 years, the maximum application age is 57 years, and in the 9 years, the maximum application age is 62 years.
  • Policy term of 16: Here, the policyholder can choose premium years between 8 and 9 years. In those 8 and 9 years of premium terms, the maximum application age is 59.
  • Policy term of 21: Here, the policyholder can choose premium years of 8 and 9 years where the maximum age for application is 54 years.

Features Of LIC Premium Endowment Plan

There are certain features of this premium policy:

  • The premium is payable monthly, quarterly, half-yearly or yearly. The policyholder can choose the appropriate option for them.
  • The minimum amount of sum matured with this policy will be 300000, and there is no limit to the maximum amount.
  • The minimum amount for accidental death benefit is of 100000 and maximum is 1 crore.
  • There is a maximum cover ceasing age of 69 years for the premium policy term of 12 years and 70 years for others.
  • The grace period or the extra times are given for delayed premiums are 15 days for monthly payments and 30 days for other available premium payments.

Benefits Of LIC Premium Endowment Plan

There are both benefits for untimely death and after the maturity normally.

1. Death Benefit: In case the policyholder dies before this premium policy matures then all the premiums paid and due are paid to the family of that person. But death benefit means something more than just that. It has been named as “Sum Assured on Death” where the reversionary bonuses and the additional yearly bonuses (if there is any remaining) will be paid to the person's family.

This policy is known to be 10 times more beneficial than normal policies with annual premiums. There is a guarantee of gaining 125% of Basic Sum Assured when this policy is started. It will not be less than 105% of all those premiums paid till the date of death of the policyholder. But these premiums are excluded from the service tax and other premiums payable.

2. Benefit After Maturity: The maturity amount for the premium or “Sum Assured on Maturity” is the same base amount with reversionary bonuses and additional bonuses if remained any. All the premiums should be paid, and after the completion of the premium years and maturity years, a total amount will be paid to the policyholder.

3. The Bonuses: Simply put, those bonuses as the reversionary and additional are all gained due to the participation of profits for the corporation on the whole. There is declared and claimed by the Corporation and through which the total premium policy will perform. The Final additional bonus will be given on the year when this policy will be claimed finally. That can be either in the year of the policy holder's untimely death or after maturity normally.

Other than those main benefits mentioned above, any policyholder of this premium policy will gain some optional benefits as in, Rider benefits:

  • LIC benefit under the claim for accidental death of the premium holder or even the disability after the accident.
  • There is a New Term Assurance Rider available for the policyholders.

Here the policyholder must remember that the basic sum assured with this policy will always be a larger amount than these Rider benefits. The user can always learn about these Rider benefits from online searches

Calculating The Premium

  • Name
  • Age
  • Mobile number
  • Email Address
  • Sum Assured
  • Policy Terms
  • And finally, Premium payment term

Discounts Or Rebates

There are basically two types of discounts or rebates provided to the policyholder with this policy. But they depend on the basic sum assured and also the payment mode they have selected for themselves.

  • If the basic sum assured is Rs 300000 to 490000: Rebate on per 1000 Rs will be NIL when the method for payment is monthly or quarterly, and the percentage will also be NIL.
  • If the basic sum assured is Rs 500000 to 990000: Rebate per 1000 Rs will be 0.50% of the basic sum, and the payment method has to be half-yearly where the percentage will be 1%.
  • If the basic sum assured is Rs 1000000 and above: The rebate per 1000 Rs is 0.75%, and the payment method has to be yearly, and the percentage will be 2%.

All discounts provided to both public and the employees of LIC will be 5% of all types of premiums CIES.

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