Offering the elements of savings and protection together, LIC’s Limited Premium Endowment Plan is non-participating and non-linked in nature. This plan is most popular for its ability to offer liquidity when required, owing to its facility of providing loans.
LIC Limited Premium Endowment Plan also secures the future of the family members of the insured in case he/she passes away during the policy term (before maturity). Additionally, it also provides a lump-sum payment to the insured upon maturity of the policy.
Benefits Offered Under LIC’s Limited Premium Endowment Plan:
- Maturity Benefit: The maturity benefit is provided by LIC when the Life Assured survives the stipulated maturity date. The policy, however, has to be in force for the maturity benefit to materialise. The policyholder has to have paid his/her premiums diligently and regularly. The basic sum assured (sum assured on maturity) is provided to the insured along with the vested reversionary bonuses and the final additional bonus amount (if the insured is entitled).
- Death Benefit: The ’sum assured on death’ is provided to the family of the insured in case he/she passes away before the stipulated maturity date. Along with the sum assured amount, vested reversionary bonuses, and final additional bonus (if the insured is entitled) is also offered by LIC. The amount made available as ‘sum assured on death’ is 125% higher than Basic Sum Assured or 10 times more than the annualised premium amount. Moreover, the death benefit cannot be any less than 105% of the total premiums that have been paid up until the date of death.
LIC’s Accidental Death and Disability Benefit Rider:
LIC Limited Premium Endowment Plan defines an accident as ‘a sudden, unforeseen, and involuntary event caused by external, violent, and visible means’. The policyholder has to pay a certain amount of money in order to avail the benefits of this rider. The rider can be purchased at any time while the policy is still in force within the basic plan’s premium paying term. However, the outstanding premium paying timeframe (of the basic plan) has to be 5 years. The premiums under this rider will not have to be paid by the policyholder once premiums for the policy have been duly paid. The riders will be made available to the insured during the term of the policy or prior to the policy anniversary.
LIC’s New Term Assurance Rider:
If the policyholder wants to purchase this rider, he/she will be required to do so during the policy’s inception and will be required to pay extra premiums as well. The additional amount will have to be paid alongside the basic plan’s premiums during the policy’s premium paying term. If the Life Assured passes away during the term of the policy, then LIC provides an extra portion of money alongside the Term Rider Sum Assured amount to the family members. However, the rider will still have to be in force for this facility to be made available. Also, the premiums for the rider have to be paid regularly.
Premiums for LIC Limited Premium Endowment Plan
The payable amount of money (premiums) shall be ‘total installment premium’ which encompasses the following elements:
- Installment made towards the Basic Plan
- Installment made towards LIC's Accidental Death and Disability Benefit Rider, if the policyholder has purchased the same
- Installment made towards LIC's New Term Assurance Rider, if the policyholder has purchased the same
There are multiple other terms and conditions that fall under the LIC Limited Premium Endowment Plan. These include free-lock period, forfeiture during certain circumstances, nominations and assignments, and so on.