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Limited Premium Endowment Plan

Limited Premium Endowment Plan




Limited Premium Endowment Plan (Plan No. 830)


Limited Premium Endowment Plan is another savings cum protection plan which gives the convenience of paying premiums for a limited period of time yet reap the benefits of insurance for the complete policy term. This plan provides financial support for the family in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder. 

This plan is basically for those who wish to pay premiums for few years only (8 or 9 years) and then stop paying the premiums and still get all the benefits of the policy.

Features

  • Death Sum Assured is 125% of the Basic Sum Assured
  • Additional accidental risk cover is available
  • Premium paying term is 8 or 9 years
  • Policy Term is 12 , 16 or 21 years
  • Loan facility is available
  • Maturity benefit is Basic Sum Assured + Accrued Bonuses




Eligibility Conditions


Minimum age at entry
18 years
Policy Term
12,16 and 21 years
Premium Paying Term
8 and 9 years
Minimum Basic Sum Assured
Rs 3,00,000/-
Maximum Basic Sum Assured
No Limit (in multiples of Rs 10,000/-)











Maximum Age at Entry
Policy Term
PPT
(8 Years)
PPT
(9 Years)
12
57
62
16
59
59
21
54
54




Double Tax Benefit


U/S 80 C  : Premiums paid under this plan are eligible for tax rebate u/s 80C

U/S 10(D) : Maturity Returns / Death claim amount is also tax free u/s 10 (D)


Possible Events during policy duration


On Death

If the policy holder dies during the policy term, his/her nominee will be paid following, after which the policy will terminate.
1. 125% of Basic sum assured
2. Accrued Bonuses

On Accidental Death

In case, the policy holder dies due to an accident, the nominee will get following, after which the policy will terminate.
1. 125% of Basic sum assured
2. Additional accidental sum assured (maximum upto Rs. 50 Lakhs)
3. Accrued Bonuses


On Maturity

The policy holder will get the following returns at maturity:
1. Basic sum assured
2. Accrued Bonuses

 The policy will terminate after this.


Understand Limited Premium Endowment Plan with an example


Mr. Sandeep aged 30 years, plans to take Limited Premium Endowment Plan for the policy term (PT) of 21 years and Premium Paying Term (PPT) of 9 years. He chooses basic sum assured of Rs 3,00,000.00 (Rupees Three Lakhs only). 

He is required to pay an annual premium of Rs 24,320.00 (Rupees Twenty Four Thousand Three Hundred and Twenty only) for the premium paying term (9 years) only.


Possible Events


On Death
If Mr Sandeep dies during the policy term, his nominee will receive the Death Sum Assured i.e. 125% of Basic Sum Assured (125% of Rs3,00,000.00) + Accrued Bonuses. After this, the policy will terminate.

On Accidental Death 
If during the policy term, Mr. Sandeep dies due to an accident, his nominee will receive the Death Sum Assured (125% of Rs 3,00,000.00) + Additional Accidental Sum Assured (Rs 3,00,000.00) + Accrued Bonuses. The policy will terminate after this event.

On Survival till maturity
If Mr. Sandeep survives till the end of policy term, he will get the Basic Sum Assured i.e. Rs 3,00,000.00 (Rupees Three Lakhs) + Accrued Bonuses. The policy will terminate thereafter.




*** To buy a new LIC plan call Vikas 99111-70785 ***

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