LIC Limited Payment Endowment Plan
LIC Limited Payment Endowment Plan is a simple participating limited payment endowment plan of LIC. In LIC Limited Payment Endowment Plan, premium needs to be paid only for a period of 8 or 9 years, as chosen whereas the policy continues for 12 years, 16 years or 21 years. Thus, after the premium paying tenure of 8 or 9 years is over, the policy continues for the remaining tenure without any additional premium payment.
Thus, on survival of the Life Insured on Policy Maturity, the Basic Sum Assured on Maturity is paid along with the Bonus. LIC Limited Payment Endowment Plan pays vested simple Reversionary bonuses and Final Additional bonus, if any. However if the Life Insured dies within the policy tenure, the nominee would only get the “Sum Assured on Death” along with the vested Simple Reversionary Bonuses and Final Additional Bonus, if any and the policy will terminate.
LIC Limited Payment Endowment Policy also has additional riders, i.e. optional features which can be purchased at an additional cost. The 2 additional riders available with this plan:
- Accidental Death and Disability Benefit wherein additional sum of money would be paid in case of Accidental Death or total disability of the Life Insured
- Term Rider: wherein additional Death Benefit of the Life Insured is provided at a very nominal cost
The premium is very competitive and there are regular features available in this plan like Surrender, Loan, Paid Up Benefits, etc. There is High Sum Assured rebate available in this plan for plans with higher Sum Assured beyond Rs 5 lacs.
In fact LIC Limited Payment Endowment Plan is a simple Endowment Plan which offers a limited tenure premium paying facility whereas the policy continues for 12 to 13 years. LIC Limited Payment Endowment Policy is a cost effective policy and is best suited for people who need a higher tenure of coverage but are not willing to continue to pay premium for a very long tenure,