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
- Key Features of the policy
- Benefit of the policy
- Eligibility Criteria and Terms and Condition of the Policy
- Entry Age
- Example of LIC Limited Premium Endowment Plan
- Premium Payment illustration
- Rebate on high sum assured and mode of premium payment
- Available Riders
- Documents required for purchasing the plan
- Documents required for claim procedure
- Details required for Premium Calculation
- Additional Features and Benefits
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
|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
15 days for monthly mode
30 days for quarterly, half yearly and yearly mode
|Policy Term||Premium Payment Term
|Premium Payment Term
|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 policyholder– If 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|
|Half yearly Premium||138608||4283||142891||138608||2141||140749|
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|
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
- 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.