As the name suggests, it is the limited payment Endowment Plan. It means, suppose you opted a term of 12 year, then you will not pay the premium for the full 12 years. Instead, your premium payment sieges earlier than the maturity period.Below are the features of Limited Payment Endowment Plan (Table No.830)
Benefits- Death Benefits-
On death of policy holder during the policy period, his or her nominee will receive Sum Assured on Death+Accumulated Bonus and Final Additional Bonus if declared by LIC.
Sum Assured on Death will be higher of below.
- 10 times of annualized premium paid.
- Absolute amount to be payable i.e 125% of Basic Sum Assured.
Also do remember that such death benefit shall not be less than 105% of all premiums paid as on date of death. Premium mentioned for this benefit excludes taxes on premium, any extra premium you paid and rider premiums.
Survival Benefits-
If policy holder survives till the end of policy term then he/she will receive Sum Assured on Maturity+Bonus+Final Additional Bonus (if declared by LIC). Here Sum Assured on Maturity is equal to Basic Sum Assured.
Premium rates not yet available to share with you all. So let us wait to analyze more.
At first look, do you feel it as a great product? I do not think so. Because this is an endowment product. So as usual, if you buy this then you will end up in lower life insurance and lower return. A second point to remember is, this plan even though called as LIMITED, but see the difference between the tenure of the plan and the premium paying tenure, there is not much difference. So even though you feel bit comfort that your premium payment will end early, but it is exaggerated almost nearer to maturity years. As this product is limited payment endowment plan, you may see slightly higher premium than a regular plan of LIC.
These are the current available information about this plan. I will update this post as and when I get the information about the same.
vinay mohanty
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