LIC Limited Premium Endowment (Table 830) – Review, Features and Benefits

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.

Features of this policy – (Table 830)

• It is an endowment plan with a limited premium facility.
• The loan facility is available against this policy.
• Rider Benefit is available on additional premium.
• On the death of the policyholder, the nominee gets the death benefit.
• Premium payment mode is monthly, quarterly, half-yearly and yearly.
• The policy term is 12, 16 and 21 yrs

Benefits of the policy –

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 –

• The highest of 10 times of annualized premium or Guaranteed Sum Assured on Maturity i.e. Basic Sum Assured or Absolute amount assured to be paid on death i.e. 125% of Basic Sum Assured.
• This death benefit shall not be less than 105% of all the premiums paid as on the date of death.

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 –

• LIC’s Accidental Death and Disability Benefit Rider
• LIC’s New Term Assurance Rider (UIN: 512B210V01)

Eligibility conditions of this policy –

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)

Documents required for purchasing this policy –

1. Filled Policy Application Form
2. Accurate medical history
3. KYC Documents (Pan Card, Aadhaar Card, Photo ID proof, etc…)
4. Address Proof

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 –

1. If the policyholder (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will pay only 80% of the premiums paid excluding any taxes, extra premium and rider premium(s) other than term assurance rider, if any, provided the policy is active. The corporation will not entertain any other claim.
2. If the policyholder (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes, extra premium and rider premium(s) other term assurance rider, if any) or the surrender value shall be payable. The Corporation will not entertain any other claim under this policy.

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.