LIC Limited Premium Endowment Plan

LIC’s Limited Premium Endowment Plan is a participating non linked plan which offers the perfect combination of protection and savings.The plan ensures that you will benefit from your investment if you survive the policy and offers financial protection to your family in case anything should happen to you during the policy term.

Eligibility Criteria for LIC's Limited Premium Endowment Plan

Eligibility criteria feature Eligibility
Minimum age at entry 18 years
Maximum age at entry 50 years
Minimum sum assured Rs. 3,00,000
Maximum sum assured No limit on the maximum basic sum assured
Minimum policy term 12 years
Maximum policy term 21 years
Maximum maturity age 69 years

Key Features of LIC's Limited Premium Endowment Plan

Type Participating non linked life insurance policy
Plan basis Individual
Premium payment terms 8 and 9 years
Policy term 12, 16 and 21 years
Maturity benefit Sum assured on death + Vested Simple Reversionary bonus + Final additional bonus(if any) will be paid as maturity benefit
Mode of premium payment Annually, bi annually, quarterly, monthly
Free look period 15 days from the date of receipt of the policy
Grace period 15 days for monthly mode and 30 days for all other modes
Sum assured Rs. 3,00,000 is the minimum sum assured under the policy
Surrender value The policy can be surrendered for cash given that the premium has been paid for three whole years. The surrender value to be paid will be a percentage of the total premiums paid.
Loan facility Loan can be availed only if the policy has acquired a surrender value
Lapse of policy The policy will lapse if premiums are not paid in due time
Policy revival A lapsed policy can be revived within two years from the date of first unpaid premium

Benefits and Advantages of LIC's Limited Premium Endowment Plan

Listed below are the benefits and advantages of LIC’s Limited Premium Endowment Plan.

  • The policy offers the double benefit of financial protection in case of death of the policyholder and savings.
  • Death benefit- Sum assured on death along with reversionary bonus and final additional bonus(if any) will be paid as death benefit to the nominee in case of unfortunate death of the policyholder.
  • Maturity benefit- The plan qualifies for Maturity benefit which will be paid at the end of policy term considering all the premiums have been paid in full. Sum assured along with reversionary bonus and final additional bonus will be paid as maturity benefit.
  • Convenience- The plan can be purchased online with no hassles.
  • Participation in profits- The policy will be entitled to reversionary bonuses by participating in profits.
  • Flexibility-The plan offers the flexibility of paying premiums monthly, quarterly, biannually or annually depending on what the customer is comfortable with.

How does the plan work?

Let’s consider the example of Ms. Ananya,, a 28 year old professor who opts for LIC’s Limited Premium Endowment plan with a sum assured of Rs. 5,00,000 for a policy term of 16 years and a premium paying term of 9 years.. If Ms. Ananya will be paying a yearly premium of Rs. 43, 995, she will get a maturity benefit of Rs.09,10,000 if she survives the policy. If Ms. Ananya passes away before the termination of the policy, his nominee will receive sum assured along with various bonuses such as reversionary bonus from participation in profits and additional bonus.


The policy offers two types of optional riders that one can avail along with the policy. Listed below are the two types of riders one can avail with the policy.

  • LIC’s Accidental Death and Disability benefit rider
  • LIC’s New Term Assurance rider

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