Know about LIC Limited Premium Endowment plan

LIC is one of the most trustworthy insurance companies in India, which was founded in 1956. Being the largest insurance company of India, LIC offers a wide range of insurance products to suit the diversified need and demand of the customers, and one such popular product of this company is LIC Limited Premium Endowment Plan.

LIC Limited Endowment Plan 830

LIC Limited Endowment Plan 830 is a non-linked guaranteed endowment policy which offers you the benefit of both protection and investment. So along with a financially secured future of your family in case of your death, this plan also provides you a lump sum amount in the form of maturity benefit upon the survival of the policyholder. In addition to this, the policyholder also gets the benefit of bonus and loan facilities under this plan.

The name of the plan itself indicates that the plan is a limited period plan which means that the payment of premium is limited in comparison to the policy term. So, if your policy term of LIC limited Endowment Plan 830 is of 12 years, then you have to pay premium for 8 or 9 years which is a limited period of premium payment term.

 Key Features of the policy

  • Availability of Term Assurance Rider and Accidental death and disability benefit rider
  • Limited premium paying term
  • Sum assured along with revisionary bonus is given on maturity or death
  • A wise combination of insurance and investment
  • Less number of premium paying term in comparison to policy term

Benefit of the policy

Death Benefit- In case of untimely death of the policyholder during the policy term, the nominee will receive the sum assured  in the form of death benefit +simple revisionary bonus+ final additional bonus (if all due premiums have been paid). The sum assured on death equals 125% of the basic sum assured, or 10 times the annualized premium or 105% of all premiums.

Maturity Benefit- If the policyholder survives the policy term, then he gets sum assured on maturity+ Revisionary Bonus+ additional bonus (if all the due premiums have been paid). The sum assured on maturity is equal to the basic sum assured.

Tax benefit- Premiums paid under the policy are exempted from tax under section 80C and the benefits received under the policy is exempted from tax under section 10 (10D).


Eligibility Criteria and Terms and Condition of the Policy

  Minimum Maximum
Sum Assured Rs.3,00,000 No Limit
Premium Payment                                         8 or 9 years
Accidental Death Benefit Rs.1,00,000 Rs.1 crore
Premium Payment Mode                Monthly, Quarterly, Half yearly, Yearly
Policy Term                                       12, 16, 21 years
Cover Ceasing Age                  –

69 years for a policy term of 12 years with 8 years premium payment term

70 years in other cases

Grace Period

15 days for monthly mode

 30 days for quarterly, half yearly and yearly mode


Entry Age

Policy Term Premium Payment Term

(8 years)

Premium Payment Term

(9 years)

12 57 years 62 years
16 59 years 59 years
21 54 years 54 years

 Example of LIC Limited Premium Endowment Plan

Mr.Shukla, 35 years, bought the LIC Limited Premium Endowment Plan with a policy term of 12 years and premium payment term of 9 years and the sum assured of his policy is Rs.3 Lakh. Now, Mr.Shukla needs to pay an annual premium of Rs.30,091 for 9 years only while his policy will continue for 12 years.

Now, following are different situations and benefits based on the above mentioned example

Death of the Policyholder If Mr.Shukla dies during the policy term, then he will receive sum assured+accrued bonus after which the policy will be terminated.

Accidental death of the policyholder If Mr.Shukla meets with an accident during the policy term, then he will receive the sum assured + additional accidental sum assured + accrued bonus.

Survival of the policyholderIf Mr.Shukla survives the policy term, then he will receive the sum assured+ accrued bonus after which the policy will be terminated.


Premium Payment illustration

Mr.Pankaj. 25 years, bought LIC Limited Premium Endowment plan with a policy term of 12 years and premium payment term of 8 years. The sum assured of the policy is Rs.10,00,000. Now let us understand the premium payment of Mr.Pankaj with a table.

  First Year Premium From second year to last year premium
Mode of Premium Payment Without tax Tax With Tax Without Tax Tax With Tax
Monthly Premium 23333 721 24054 23333 360 23693
Quarterly Premium 70000 2163 72163 70000 1082 71082
Half yearly Premium 138608 4283 142891 138608 2141 140749
Yearly Premium 274433 8480 282912 274433 4240 278673


Rebate on high sum assured and mode of premium payment

Rebate on high sum assured Rebate on mode of premium payment
Sum Assured Rebate Premium Payment Mode Percentage
Rs.3,00,000 to Rs,4,90,000 Nil Monthly and Quarterly Nil
Rs.5,00,000 to Rs.9,90,000 0.50% per thousand basic sum assured Half Yearly 1% of tabular premium
Rs10,00,000 and above 0.75% per thousand basic sum assured   2% of tabular premium

Available Riders

Term Assurance Rider- You can opt for a minimum sum assured of Rs.1 lakh and maximum sum assured ofRs.25 lakh under this rider, which can be opted at any time within the premium paying term of the basic plan provided the outstanding premium paying term is at least 5 years. The benefit under this rider will be available during the policy term or before the policy anniversary where the age of insured is closer to 70 years, whichever is earlier.

Accidental death or disability benefit rider- You can opt for this rider at any time within the premium paying term of the basic plan provided the outstanding premium paying term is at least 5 years. So for a plan with  8 years of premium payment term , you can opt this rider in the initial 3 years. The minimum sum assured under this rider is Rs.10,000 and the maximum sum assured is Rs.1 crore. The benefit under this rider will be available during the policy term or before the policy anniversary where the age of the insured is closer to 70 years, whichever is earlier.

Documents required for purchasing the plan

  • Application form/ Proposal form along with photo
  • Address proof
  • Age Proof
  • Medical Reports(if required)

Documents required for claim procedure

  • NEFT Form
  • Discharge Form
  • Cancel check or Bank Pass Book xerox
  • Policy Bond
  • Death Certificate

Details required for Premium Calculation

  • Name
  • Age
  • E-mail id
  • Mobile Number
  • Policy Term
  • Premium Payment Term
  • Sum Assured

Additional Features and Benefits

Free Look Period- If you are not satisfied with the policy, then you can cancel the policy in 15 days from the date of the receipt of policy bond.

Paid up Value- On the death of the policyholder, the paid value of sum assured is given as

Death paid up sum assured = Sum assured on death x (number of premiums paid/ number of premiums payable during the premium paying term)

The sum assured on maturity under a paid up policy is given as

Maturity paid up sum assured= Sum assured on maturity x (number of premiums paid/number of premiums payable)

Service Tax There is a service tax of 3.09% on the policy.

Loan- Loan against the policy can be taken if the policy has acquired surrender value.

Surrender Value The surrender value is available for the policyholder after paying premiums for 2 years. Following are the two types of surrender value:-

Special Surrender Value- Surrender value will be the discontinued value of the paid up sum assured and vested simple revisionary bonus.

Guaranteed Surrender Value- Guaranteed Surrender Value will be a percentage of the total premiums paid (net of taxes) excluding extra premium , if any and premiums paid for riders is opted. The GSV will be applicable to the vested simple revisionary bonus, if any.

Suicide Clause  If the policyholder commits suicide within 12 months of the date of revival or the date of commencement of risk, then 80% of the paid premiums will be returned to the nominee or assignee of the policyholder. And if the policyholder commits suicide after 12 months, then the full sum assured along with due bonus will be paid to the nominee.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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