LIC launches new Limited Premium Endowment Plan (Plan No. 830)

 LIC’s Limited Premium Endowment Plan is a participating non-linked plan which offers a combination of protection and savings. 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 also takes care of liquidity needs through its loan facility.

1.     Benefits:
Death benefit: In case of death during the policy term, provided all due premiums have been paid, Death benefit, defined as sum of “Sum Assured on Death“, vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. Where, “Sum Assured on Death” is defined as the highest of 10 times of annualised premium or Guaranteed Sum Assured on Maturity i.e. Basic Sum Assured or Absolute amount assured to be paid on death i.e. 125% of Basic Sum Assured . This death benefit shall not be less than 105% of all the premiums paid as on date of death.
Premiums referred above exclude service tax, extra premium and rider premium(s), if any.

Maturity Benefit: “Sum Assured on Maturity” equal to Basic Sum Assured, along with vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums have been paid.

Participation in Profits: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in full force.
     
Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity.

2.     Optional Benefit:
The policyholder has an option of availing the following Rider benefit(s):
     LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V01) 
    LIC’s New Term Assurance Rider (UIN: 512B210V01) 
Rider sum assured cannot exceed the basic sum assured. 

 Eligibility Conditions and Other Restrictions:

Minimum Basic Sum Assured      :   Rs. 300,000
 Maximum Basic  Sum Assured    :   No Limit
  (The Basic Sum Assured shall be in multiples of Rs. 10,000/-)
Policy Term                               : 12, 16 & 21 years
Premium Paying Term                : 8 & 9 years
Minimum Age at entry                :  18 years (completed)
Maximum Age at entry                 :
Maximum Age at entry
   Term           (in Years)
  PPT = 8 years
PPT = 9 years
   12
       57
      62
   16
       59
      59
   21
       54
      54

Maximum Maturity Age    : 69 years (nearest birthday) for 12 year Term                                                   and 8 year PPT
                                        74 years (nearest birthday) for 12 year Term and 9                                           year PPT &                                                                                                    75 years (nearest birthday) in all other cases

Payment of Premiums:
Premiums can be paid regularly during the premium paying term at yearly, half-yearly, quarterly or monthly mode (through ECS only) or through salary deductions over the term of policy.
However, a grace period of one month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums. 

Sample Premium Rates: 
Following are some of the sample annual tabular premium rates (in Rs.) (exclusive of service tax) per Rs. 1000/- Basic Sum Assured:



      TERM
12 years
16 years
21 years
AGE/PPT
(in yrs.)
8
9
8
9
8
9
20
111.20
101.55
95.35
87.10
78.60
71.75
30
111.55
101.85
95.90
87.60
79.55
72.65
40
113.15
103.35
98.30
89.85
83.25
76.10
50
118.20
108.25
104.95
96.15
92.35
84.60

Mode and High S.A. Rebates:
Mode Rebate:

    Yearly mode                               –       2% of Tabular Premium    Half-yearly mode                       –       1% of Tabular premium    Quarterly & Salary deduction   –      NIL    
High Sum Assured Rebate:   

Basic Sum Assured (B.S.A)               Rebate (Rs.)
3,00,000 to 4,90,000            –           Nil5,00,000 to 9,90,000            –           0.50%o B.S.A.10,00,000 to and above        –           0.75%o B.S.A.


 Revival:
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium by paying all the arrears of premium together with interest (compounding half-yearly) at such rate as fixed by the Corporation at the time of the payment, subject to submission of satisfactory evidence of continued insurability.
Revival of rider(s), if opted for, will be considered along with revival of the Basic Policy, and not in isolation.

 Paid-up Value:
If, after atleast two full years’ premium have been paid and any subsequent premiums be not duly paid, this policy shall not be wholly void, but shall subsist as a paid-up policy.
The Sum Assured on Death under a paid-up policy shall be reduced to such a sum, called ‘Death Paid-up Sum Assured and shall bear the same ratio to the Sum Assured on Death as the number of premiums paid bears to the total number of premiums payable i.e. Death Paid-up Sum Assured = Sum Assured on Death * (no. of premiums paid / no. of premiums payable during the premium paying term). Death Paid-up Sum Assured along with along with vested simple reversionary bonuses, if any, is payable on death of the Life Assured during the policy term.
The Sum Assured on Maturity under a paid-up policy shall be reduced to such a sum called ‘Maturity Paid-up Sum Assured’ and shall bear the same ratio to the Sum Assured on Maturity as the number of premiums paid bears to the total number of premiums payable i.e. Maturity Paid-up Sum Assured = Sum Assured on Maturity * (no. of premiums paid / no. of premiums payable). Maturity Paid-up Sum Assured along with along with vested simple reversionary bonuses, if any, is payable on expiry
of the policy term.
A paid-up policy will not accrue any further bonuses.
Rider(s) do not acquire any paid-up value and the rider benefits cease to apply, if policy is in lapsed condition.

11.  Surrender Value:
The policy can surrendered provided atleast two full years’ premiums have been paid. The Guaranteed Surrender value shall be percentage of total premiums paid (net of service tax) excluding extra premiums and premiums for rider(s), if opted for. This percentage will depend on the policy term and policy year in which the policy is surrendered and specified as below:  





 In addition, the surrender value of any vested simple reversionary bonuses, if any, shall also be payable. The surrender value factors in percentage will depend on the policy term and policy year in which the policy is surrendered and specified as below: 


Corporation may, however, pay Special Surrender value, if it is more favorable to the Policyholder.
Policy Loan:
Loan can be availed under the policy provided the policy has acquired a surrender value and subject to the terms and conditions as the company may specify from time to time.

Taxes: 
Taxes including Service Tax, if any, shall be as per the Tax laws and the rate of tax shall be as applicable from time to time.
The amount of tax as per the prevailing rates shall be payable by the Policyholder on premiums including extra premiums, if any. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.

Cooling-off period:
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days from the date of receipt of the policy bond stating the reasons of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium (for basic plan and rider(s), if any) for the period on cover, expenses incurred on medical examination, special reports, if any and stamp duty.

Exclusion:
Suicide: – This policy shall be void
§  If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of 80% of the premiums paid excluding any taxes, extra premium and rider premiums other than term assurance rider, if any, provided the policy is inforce.
§  If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes, extra premium and rider premiums other than term assurance rider,  if any,) or the surrender value, shall be payable. The Corporation will not entertain any other claim under this policy.