Limited Premium Endowment Plan

Limited Premium Endowment PlanLimited Premium Endowment Plan gives an option to the policyholders to pay their premium for a limited period of time. It is an endowment assurance plan with profits.

The plan not only provides life insurance to the policyholder but it helps with savings as well. The policyholder pays all the premiums of the policy for a short-term whereas the policy benefits are provided for a relatively longer term.

 

Plan Features

Policy Term Premium Payment Term – 8 years Premium Payment Term – 9 years
 12 years  Maximum age 57 years  Maximum age 62 years
 16 years  Maximum age 59 years  Maximum age 59 years
 21 years  Maximum age 54 years  Maximum age 54 years

 

Minimum Entry age  18 years
Maximum Cover Ceasing Age  70 Years (69 Years for 12 year term and 8 year PPT)
Min/Max Sum Assured  3 Lac to No Limit (Incremental Sum Assured in Multiples of 10,000)
Tax Rebate  Yes, both premium payments & death/maturity under section 80(c) and 10(10d) of I.T Act
Loan Facility  Yes, after 2 years from date of policy inception
Premium Payment  Monthly ECS*, Quarterly*, Half-Yearly & Yearly
Riders  Available

*There are no rebates in these payment modes since a 1% & 2% rebate is provided in half-yearly & yearly modes respectively.

 

Benefits of Limited Premium Endowment Plan

  • Maturity Benefits –In case of  survival of policyholder till the end of the policy term the policyholder becomes eligible for maturity benefits.
Includes Basic Sum Assured + Vested Simple Reversionary Bonus (Depends on Company’s Experience) +FAB (Final Additional Bonus, if any)

 

  • Death Benefits – In case of an unfortunate demise of the policyholder before the end of the policy term the nominee becomes eligible for death benefits.
Includes 125% of Basic Sum Assured or 10 times Annualized Premium* (whichever is higher)

 

Accident, Disability and Term Riders

  • This is an optional benefit which can be added to the policy by paying additional premium.
  • Minimum accident death benefit is Rs 10,000.
  • Maximum benefit for accidental death and disability is Rs 1 Crore.
  • In case of permanent disability after an accident, within the time period of 180 days from the precise date of accident, the policyholder would be paid the Accident sum assured in equal monthly instalments spread out over 10 years.

Term Rider – This rider can also be added by paying additional premium, with this rider in force in case of death during the policy term an additional opted amount (Up to 25 lac only) shall be payable along with the death benefit.

 

Surrender & Suicide Cases

Limited Premium Endowment plan can be surrendered at any given time of the policy term after completion of 2 full years of the term with regular premium payment. (Check for penalties)

If the policyholder happens to commit suicide before a year from the commencement of the policy, then 80% of the premiums would be returned with the exclusion of tax and extra premiums. If the policyholder commits suicide after the completion of one year of the policy term, then the nominee would be paid the Full Sum Assured + Bonus.

 

Grace period & Revival Policy

For monthly mode of premium payment a grace period of 15 days is given to make the payment. For Yearly, Half-yearly and Quarterly mode of payment a grace period of 30 days is allowed in case the policyholder has been unable to pay the premium on the due date.

If the premium is not paid on time and the grace period expires as well without the payment being made, then the policy lapses. However, the policy can be revived at any time during the policy term within a period of 2 years from the last premium paid.

 

Documents Required

  • Plan Application form along with a photograph
  • Residential proof
  • Identity proof along with age proof
  • Medical reports if necessary.

 



Disclaimer – Though we try our best but we do not guarantee correctness of information hence you are advised to be cautious & do thorough research before reaching to a conclusion. If you find any discrepancies you’re welcome to contact us.