LIC Limited Premium Endowment Plan 930
The Limited Endowment Plan, which is under the aegis of LIC, is an endowment plan that provides its users with a dual benefit of investment and insurance. Since this policy is one of a limited pay profile, the payment term of the premium is considerably less than that of a regular policy term. The duration of the lock-in period offered by this plan has 2 variants, one of 12 years, the other of 16 years and the final one of 21 years. However, the premium which is paid has to be paid for 8 to 9 years. This depends on the option chosen by the user at the very beginning of adopting the plan.
How does this Policy Work?
Before buying the Limited Premium Endowment Plan, the prospective policyholder must decide on a few things which are stated below. These things are required to be considered to make a sound decision.
- Basic assured Sum – This particular amount is the one which must be inclusive in the cover that you want to opt for. A minimum amount for this is ₹ 3,00,000. However, this variant of the policy does not hold any upper or maximum limit, which mostly proves to be a positive factor of it.
- The Term of the Policy – This is the duration of time for which the cover is wanted by the policyholder. The term of this policy can be variable and can stand for 12 years, 16 years or a maximum of 21 years.
- The Term of Premium Payment – This is the term for which the premium has to be paid. It has to be paid for these many number of years. A policyholder has the option to choose the term of payment of the premium between 8 and 9 years.
- The Selected Riders – A policyholder has access to multiple additional services which have extra charges. They are there to make a policy as free from danger as possible. However, an additional premium has to be paid for these riders. A policyholder has 2 choices of riders to choose from. These are:
- Disability Benefit and Accidental Death Rider
- Assurance Rider for the New Term
On the basis and pretext of the basic assured sum, the policyholder’s age, the term of the policy chosen by the policyholder and the term of payment of the premium along with the choice of selected riders for the plan, the annual premium of the policyholder is decided and he/she is charged accordingly.
Benefits of the Limited Endowment Plan
Death Benefit of the Limited Endowment Plan in LIC
In the unfortunate case of the demise of the policyholder before the term of the policy comes to an end, the nominee of the policyholder will be liable to receive all of the given benefits:
- assured sum on the death of the policyholder
- additional bonuses
- final lump sum bonus for the beneficiary
The Maturity Benefit of the Limited Endowment Plan in LIC
When the policy term ends, the policyholder is liable to receive the following additions:
- basic sum of money assured initially
- additional bonuses which are liable from case to case
- a final bonus for the nominee