LIC Premium Endowment Plan has been withdrawn by LIC and is not available for sale and purchase.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.
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.
‘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.
There are certain features of this premium policy:
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:
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
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.
Last updated on 07-05-2020