LIC Limited Premium Endowment Plan (830)

LIC has launched new plan “Limited Premium Endowment Insurance Plan“. It is a participating non-linked plan that provides a combined facility of protection and saving. This insurance plan financially helps the family of policyholder if he/she dies unfortunately before maturity or a lump sum amount on maturity
if the policyholder survives.

This is a very beautifully designed product, for a special segment wherein the prospective customers are not too keen on paying premium for a longer duration, but yet want to have a risk cover for a substantially longer period.

Benefits of Plan.

·         Minimum age at entry > 18 years completed

·         Maximum age at entry > 62 years (age near birthday)

·         Maximum exit age > 75 years

·         Policy Term > 12 yrs/ 16 yrs/ 21 years

·         Premium Paying Term > 8 & 9 years

·         Minimum Sum Assured > Rs.3 Lacs. Thereafter, in multiples of Rs.10000/-

·         Maximum Sum Assured >No limit

·          

·         Benefits:

o    Maturity Sum Assured > Basic Sum Assured + Vested Bonus + FAB, if any

o    Death Sum Assured > Sum Assured + VB + FAB, if any, where SA is defined as Higher of- 10 times of Annualized Premium
OR 125% of Basic Sum Assured OR 105% of all premiums paid

·          

·         Riders:

o    Accident Benefit Rider > Optional rider with minimum Rs.10000/- & maximum upto Rs.1 Cr, subject to max SA

o    Term Assurance Rider > Optional, with min Rs.1 Lac & max Rs.25 Lacs

·          

·         Rebates

o    Mode Rebates > 2% for Yly & 1% for Hly

o    High SA Rebates>

§  5 Lacs to 9.90 Lacs=0.50%

§  10 Lacs & above= 0.75%0

·          Revival of Lapsed policies > Within 2 yrs from date of FUP

·          Agent’s Commission >10% in First Year and 5% thereafter.