LIC’s Limited Premium Endowment Plan is an endowment plan with a limited premium facility. This plan offers a dual benefit of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholder any time before maturity. A lump sum amount is given to the policyholder who survives till the end of the maturity period.
a) Death benefit –
If the policyholder dies during the policy term, then the nominee of the policy will get death benefit as “Sum Assured on Death” + vested Simple Reversionary Bonuses + Final Additional bonus, provided all due premiums have been paid.
Where “Sum Assured on Death” is defined as –
b) Maturity Benefit –
If the policyholder survives till the maturity period, then the policyholder will receive a lump sum amount of “Sum Assured on Maturity” (which is equal to Basic Sum Assured) + vested Simple Reversionary Bonuses + Final Additional bonus provided all due premiums have been paid.
c) Rider Benefit –
The policyholder has the option of availing the following Rider benefit(s) on paying an additional premium. Rider Sum Assured cannot exceed the Basic Sum Assured –
Like every LIC Policy, this policy also has some eligibility conditions. Here are a few shortcuts which I have used in the table – Policy Term (PT), Premium Payment Term (PPT)
|Minimum Entry Age
|Maximum Entry Age
57 yrs for PT = 12 yrs, PPT = 8 yrs
62 yrs for PT = 12 yrs, PPT = 9 yrs
59 yrs for PT = 16 yrs
54 yrs for PT = 21 yrs
|Minimum and Maximum Sum Assured
Rs 3 Lacs and No Limit
|Maximum Maturity Age
69 yrs for PT = 12 yrs, PPT = 8 yrs
74 yrs for PT = 12 yrs, PPT = 9 yrs
75 yrs for all other cases
Can the policy be revived if it gets lapsed?
Lapsed Policy can be revived within a period of 2 consecutive years from the date of the first unpaid premium provided all the premiums have been paid with interest. Revival of Rider(s), if opted for, will only be considered along with the revival of the Basic Policy and not in isolation.
Can I surrender the policy anytime?
No one cannot surrender the policy anytime one desires. The policy can be surrendered only if the policy is active and has completed 2 full years with all due premiums paid.
Can I get a loan against this policy?
Yes, one can get a loan against this policy provided at least three full years’ premiums have been paid.
Can I return the policy if I didn’t like its terms and conditions?
Yes, If the policyholder doesn’t like the terms and conditions of the policy, then the policy can be returned within 15 days from date of receipt of the same to the Corporation stating the reason of objections. These 15 days period is called the Free Look Period.
Are there any exclusions in the policy?
This policy will be considered invalid in terms of Suicide. Let’s see 2 cases –
So, by now every one of you has come to know each and every detail of this policy. Now it’s up to you all to decide if this policy is what you need or something else. If you have any doubt regarding this policy, they please let us know in the comment section.
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