The Life Insurance Corporation of India (LIC) offers a diverse range of policies for its customers. Among the different types of policies in the company’s lineup, LIC’s Limited Premium Endowment Plan is a participating non-linked insurance plan that offers a combination of both death and maturity benefits. As the name implies, this is a simple endowment plan and it comes with multiple rider options. With this plan, policyholders can also meet their liquidity needs by availing the loan option.
People who meet the following eligibility criteria can apply to LIC’s Limited Premium Endowment Plan:
|Minimum sum assured option||Rs.3 lakh|
|Maximum sum assured option||No limit (the sum assured will be in multiples of Rs.10,000)|
Some of the key features of LIC’s Limited Premium Endowment Plan can be listed as follows:
Since this is an endowment policy, the benefits available under this policy can be segmented into death benefit and maturity benefit. The benefits available under this cover are given as follows:
|Type of benefits||Extent of Coverage|
|Death benefit (in case of the death of the policyholder within the policy term)||The ‘Sum Assured on Death’ as mentioned in the policy schedule will be paid to the dependents of the policyholder. It also includes reversionary bonuses and final additional bonus. (The sum assured shall be at least 10 times the annualised premium amount paid by the policyholder. This benefit shall not be less than 105% of all the premiums paid by the policyholder.)|
|Maturity benefit (after the successful completion of the policy term)||The ‘Sum Assured on Maturity’ as mentioned in the policy schedule including the simple reversionary bonus and the final additional bonus will be paid to the policyholder.|
|Rider policies (add-on covers)||
One of the major exclusions to be noted under this policy is the death of the policyholder due to suicide. If the policyholder commits suicide within the policy term, the policy will become void. The following conditions apply to LIC’s Limited Premium Endowment Plan in case of suicide:
The claim procedure for this policy begins with intimating the company following an event that may result in a claim. Since this is an endowment plan, both death and maturity claims apply to this policy.
In case of death claims, the dependents of the policyholder must inform the company about the claim. The following list of documents must be submitted to the company while filing for the claim:
Once these documents are submitted, the company will verify the validity of these documents and communicate the acceptance or rejection of the claim. In case of rejection, the reason for rejection will be given to the applicant. Once the claim is accepted, the company will provide the settlement amount within a reasonable time.
Maturity claims are payable upon the successful completion of the policy term. The branch office typically sends out the discharge form about two months before the date of completion of the policy. The policyholder must send the duly filled discharge form along with the policy document to the branch office. In case of money back policies, if the maturity amount is less than Rs.60,000, there is no need to submit the discharge form at the end of the policy term. Upon receival of these documents, the company will provide the settlement amount to the policyholder.
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