LIC has always been one of the most trusted life insurance companies in India. The choices for insurances and getting benefits out of it are the main reasons why people tend to select this one over others. Citizens can find their particular one after reading the terms and conditions provided to them. Recently, LIC’S Limited Premium Endowment Plan is gaining popularity due to its dual objectives. It provides the user with an opportunity to save and find protection at the same time.
Death Benefit: In case the policyholder dies before this premium policy matures then all the premiums paid and due are paid to the family of that person. But death benefit means something more than just that. It has been named as “Sum Assured on Death” where the reversionary bonuses and the additional yearly bonuses (if there is any remaining) will be paid to the person’s family.
Benefit After Maturity: The maturity amount for the premium or “Sum Assured on Maturity” is the same base amount with reversionary bonuses and additional bonuses if remained any. All the premiums should be paid, and after the completion of the premium years and maturity years, a total amount will be paid to the policyholder.
The Bonuses: Simply put, those bonuses as the reversionary and additional are all gained due to the participation of profits for the corporation on the whole. There is declared and claimed by the Corporation and through which the total premium policy will perform. The Final additional bonus will be given on the year when this policy will be claimed finally. That can be either in the year of the policy holder’s untimely death or after maturity normally.
Other than those main benefits mentioned above, any policyholder of this premium policy will gain some optional benefits as in, Rider benefits:
|Eligibility Conditions & Restrictions|
|Minimum age||90 days completed|
|Maximum age||65 years|
|Maximum maturity age||75 years|
|Policy Term||10 years to 25 years|
|Minimum Sum Assured||Rs.50,000|
|Maximum Sum Assured||No limit|
|Premium payment||Single Premium|
|Loan||Eligible after 1st year|
|Surrender||Eligible at any time|
|On Death||Sum Assured + Bonus|
|On Maturity||Sum Assured + Bonus|
|Income Tax Benefit||20% of Premium paid are eligible for Tax rebate u/s 80c|