Endowment Policy

Endowment Policy

Endowment Plan Summary:

It is one of the oldest and popular LIC plan. Endowment policy (Table 14) provides financial assistance to the family of the life assured in the event of policy holders early death or a lump sum amount on policyholders survival upto the selected term. Hence, Endowment plan (Table 14) provides for family income in the event of unfortunate death of the life assured or makes provision for retirement in case of living too long. Endowment Plan is best for every reason, for all long and short term financial needs.

Endowment Policy Benefits:

  • Natural Death:
    Sum Assured + Bonus for number of years premium paid + Terminal Bonus if any.
  • Accidental Death:
    Double Sum Assured + Bonus for number of years premium paid + Terminal Bonus if any.
  • Maturity:
    Sum Assured + Bonus + Terminal Bonus.
  • Accident And Permanent Disability Benefit:
    Accident benefit is maximum Rs.50 lakh.
  • Tax Benefit:
    Tax benefit on your premium u/s 80C and Maturity/Death Claim u/s 10 (10D)
  • Loan:
    Loan Facility is available on this policy after 3 years, you can also use it as Housing Loan collateral.

Endowment policy

Premium Payment:
You can pay premium Yearly, Half-yearly, Quarterly, Monthly or Single premium.

Endowment plan Eligibility Conditions and Restrictions:

  • Minimum age: 12 years
  • Maximum age: 65 years
  • Maximum age at Maturity: 75 years
  • Min. Term: 5 years
  • Max Term: 55 years
  • Minimum SA: Rs.50,000/-
  • Max. Sum Assured: No Limit

Example:

Mr. Rajesh buy an Endowment policy under Table-14 for Rs.1 Lakh for 25 years term. He dies due to a disease after 3 yrs. In this case, Mr. Rajesh’s family/nominee will receive Rs.1, 14,400(Rs.14, 400 being Bonus for 3 yrs at an estimated Rs.48 per 1000 p.a.). If Rajesh survive till maturity he would receive Rs.2,70,000 as maturity benefit (Rs.1,20,000 being Bonus for 25 yrs at an estimated Rs.48 per 1000 p.a. + FAB @ 500/- per 1000 = 50,000/-)

How to Apply for Endowment policy?


Update: Endowment plan Table No. 14 Has Been Discontinued.


Note:
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

Limited Payment Endowment Policy

Limited Payment Endowment Plan Summary:
This is an Endowment policy similar to Table No.14. LIC’s Limited Payment Endowment (Table no.48) provides the flexibility of choosing the Premium Paying Term (PPT). If you want to pay premium only for few years then this is right endowment plan for you. All other features are quite similar to Endowment Assurance plan.

The best part of “Limited Payment Endowment” policy is that, even you are paying premium for limited term but Bonus is paid for entire term. However premium is marginal higher then Endowment with Profit (Table No.14) but at the end you end up paying less premiums.

Key Features:

  • Flexibility of choosing Premium Paying Term.
  • Bonus is paid for the entire term irrespective of PPT.
  • Life Risk covered for entire term, irrespective of PPT.
  • Maturity amount is paid at the end of term and not at the end of PPT.
  • Tax Benefit

Benefits:

Natural Death:
Sum Assured + Bonus for number of years till death + Final Additional Bonus (FAB) if any.

Accidental Death:
Sum Assured + Additional SA for DAB + Bonus for number of years till death + FAB if any (If accidental benefit is taken)

Maturity Benefit:
Sum Assured + Bonus for entire term + Final Bonus.

Accident And Permanent Disability Benefit:
You can avail this benefit by paying Rs.1 extra per 1000 sum assured. Accident benefit is maximum Rs.50 lakh and available only upto premium paying term.

Tax Benefit:
Tax benefit on your premium u/s 80C
and Maturity/Death Claim u/s 10 (10D)

Loan:
Loan Facility is available on this policy after 3 years, you can also use it as Housing Loan collateral.

Premium Payment:
You can pay premium Yearly, Half-yearly, Quarterly, Monthly or Single premium.

Eligibility Conditions and Restrictions:
Minimum age: 12 years
Maximum age: 60 years (Regular)
Maximum age for single Premium: 65 years
Maximum age at Maturity: 75 years for all.
Min. Sum Assured: Rs.50,000/-
Max. Sum Assured: No Limit
Min SA for Single Premium Rs.30,000/- (Without DAB)

Policy Term:
For Regular: 15, 20 and 25 years
For Single Premium: 5 years ti 50 years (In multiple of 5 years)

Premium Paying Term for Regular Premiums:
For 15 years term: 5 and 10 years
For 20 years term: 5, 10 and 15 years
For 25 years term: 5, 10, 15 and 20 years

How to Apply for LIC Of India’s Endowment policy?
Contact your nearest Life Insurance Corporation Of India (LIC of India) Branch/ LIC Agent. Or
Fill the Application form to apply online. (Mumbai only)

LIC Of India SMS Alert:

Receive LIC Of India Policy updates on your Mobile .  Click here: MyLICindia SMS Alert

Note:
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

Enter Your Email Address Here To Receive FREE Updates by Email:

Jeevan Mitra

Jeevan Mitra

Jeevan Mitra Double Cover Endowment Plan

Summary:
Jeevan Mitra Double Cover (Table No.88) is for people who need a big sum assured / financial protection to his/her family in case of unfortunate death during policy period. If you are looking for Jeevan Mitra Triple Cover Endowment Plan Go to this page:

Jeevan Mitra plan is not allowed for non-earning majors including students.
(i) When occupational extra is chargeable (ii) Pregnant ladies.

Premiums:
You can pay Jeevan Mitra insurance Premiums yearly, half-yearly, quarterly, monthly (ECS) or through Salary deductions.

Bonuses:
Jeevan Mitra – Double Cover participates in profit. Bonuses are declared every year. Once declared, bonus form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period.

Jeevan Mitra Double Cover (Table No.88)

Death Benefit:
Twice the Sum Assured plus all bonuses on the basic sum assured to date is payable in a lump sum upon the death of the life assured.

Accident Benefit:
3 times of Sum Assured plus all the Bonus is given on accidental death provided policy was covered for accidental benefit.

Maturity Benefit:
The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on survival to the end of the policy term.

Tax Benefit:
Tax Benefit is available on Premiums u/s 80C, Whereas Maturity/Death Claim u/s 10D

Loan Facility:
Loan is allowed after 3 years
Housing Loan Collateral: Twice Basic sum assured.

Conditions and Requirements:

  • Min. age at entry:  18 years
  • Max. age at entry:  50 years
  • Max. Maturity age: 70 years.
  • Min. S.A.: Rs. 50,000/-
  • Max. SA.: Any amount
  • SA in multiples: Rs. 5,000
  • Accident benefit per 1000 SA: Re. 1 extra.
  • Min Term: 15 years.
  • Max Term: 30 years.
  • Surrender of Policy: Yes
  • Revival: Yes
  • Housing Loan: Available
  • Assignment: Available
  • Survival Benefits: No
  • Permanent Disability Benefit: Available

Surrender:
Buying Insurance policy is a long term commitment but Jeevan Mitra policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium.

Example:
1. Mrs. Geeta takes Jeevan Mitra policy for Rs 1 Lakh for 16 years term under Jeevan Mitra Double cover table no. 88. She dies of natural death due to heart attack after 3 years. Her nominee gets Rs. 2,13,200/- (Rs. 2,00,000/- SA being Double Cover Policy + Rs 13200 being bonus at an estimated Rs 44 per thousand pa for 3 years).

In case, Mrs Geeta dies in an accident, her nominee will receive Rs. 3,00,000/- being 3 times the SA + accumulated Bonus till her death.

2. If Mrs Geeta takes the same policy but with for Rs 1 lakh but for 20 years and she survives till maturity. Then, Mrs. Geeta gets Rs. 1,88,000/- (Rs. 100000 SA + Rs. 88,000/- being bonus at an estimated Rs 44 per thousand per annum).

How to Apply for Jeevan Mitra Policy?


Update: Jeevan Mitra Double Cover Table No.88 Has Been Discontinued.


Note:
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

Jeevan Pramukh – The Insurance Plans For High Worth Individuals

Jeevan Pramukh – The Insurance Plans For High Worth Individuals

LIC Jeevan Pramukh (Plan No. 167) is the best plan for high worth individuals i.e. Managers, CEOs, corporates, professional, industrialist, estate owner, NRI, film stars etc. Jeevan Pramukh plan comes with convenient premium paying term of 3, 4 and 5 years. However, Life insurance cover continues for a longer term even after premium paying term.

Jeevan Pramukh also provides guaranteed addition of Rs.50/- per thousand Sum Assured per year for first 5 years and revisionary bonus thereafter in addition to your basic sum assured.

LIC Jeevan Pramukh Plan No. 167

 

Summary:
This is an Endowment Assurance plan offering the choice of three premium paying terms. It provides financial protection against death throughout the term of the plan with the payment of maturity amount on survival to the end of the policy term.

Modes of Premium Payment:
Premiums are payable yearly, half-yearly, quarterly or monthly, as opted by you, throughout the premium paying term or till earlier death.

Guaranteed Additions:
The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand Sum Assured for each completed year for first five years of the policy. The Guaranteed Additions are payable along with the Sum Assured at the time of claim.

Bonuses :
The policy participates in the profits of the Corporation’s life insurance business from the 6th year onwards. It will get a share of the profits in the form of bonuses. Simple Reversionary Bonuses will be declared per thousand Sum Assured annually at the end of each financial year. Once declared, they will form part of the guaranteed benefits of the policy.

Maturity Benefit:
The Sum Assured along with accrued guaranteed additions and vested simple reversionary bonuses and Terminal Bonus, if any, is payable in a lump sum on survival to the end of the policy term.

Death Benefit:
On death of the Life Assured during the term of the policy an amount equal to the Sum Assured along with accrued Guaranteed Additions and vested Simple Reversionary Bonuses and Terminal Bonus, if any, shall be payable provided the policy is in full force.

Paid-up Value:
If, after more than one full years’ premiums have been paid in respect of the Policy, any subsequent premium be not duly paid, the Policy shall not be wholly void but the Sum Assured shall be reduced to such a sum which shall bear the same ratio to the full Sum Assured as the number of premiums actually paid shall bear to the total number of premiums originally stipulated for in the Policy.

The policy so reduced shall thereafter be free from all liabilities for payment of the within-mentioned premium and shall not be entitled to the future Guaranteed Additions and bonuses.

However the existing accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, will remain attached to the reduced paid-up policy.

The paid up value along with accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, shall be payable on maturity or earlier death of the Life Assured.

Surrender Value:
The policy can be surrendered for cash after more than one year’s premiums have been paid.
The Guaranteed Surrender Value allowable under this plan will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and extra premiums, if any.

The cash value of any accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, will also be payable after completion of 3 years.

Special Surrender Value will be available after the policy has completed 3 years from the date of commencement. The cash value of any accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, will also be payable after completion of 3 years.

Grace period for payment of premium:
A grace period of one month but not less than 30 days will be allowed for payment of yearly, half-yearly or quarterly premiums and 15 days for monthly premiums.

Revivals or reinstatements of lapsed policy:
If the policy has lapsed, it may be revived during the lifetime of the Life Assured, but within a period of 5 years from the date of first unpaid premium and before the date of maturity on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium together with interest at such rate as may be prevailing at the time of the payment.

Transferability:
Where a policy under this plan has been taken by an employee under Keyman Insurance and such Keyman leaves the services and joins another employer, the policy may be transferred in favour of the new employer subject to fulfillment of the following conditions:

1) The old employer requests for the transfer of the policy and is prepared to execute an assignment in favour of the new employer

2) The Life Assured employee is a keyman of the new employer, and

3) The policy is in full force

The terms of transfer may be decided by both the employers mutually. Needless to add that such transfer will be subject to the approval from LIC.

Cooling-off period:
If a policy holder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days.

Loan:
Loan is permissible subject to the usual terms and conditions. The rate of interest on loan shall be charged at the rate of 10.5% p.a. payable half-yearly. The Corporation may revise the rate of interest in future.

Claim:
The normal documents which the claimant shall submit while lodging the claim in case of death of the policyholder shall be the claim forms, as prescribed by the Corporation, accompanied with original policy document, proof of title, proof of death, proof of accident/disability, medical treatment prior to death, employer’s certificate, whichever is applicable, to the satisfaction of the Corporation. If the age is not admitted under the Policy, the proof of age of the Life Assured shall also be submitted.

Where the policy results into a maturity claim or in case of surrender of the policy, the Life Assured shall submit the discharge form along with the original policy document. The Life Assured shall also submit proof of age, if the age is not admitted earlier.

ELIGIBILITY & CONDITIONS:

  • Minimum Age at entry: 18 Years completed
  • Maximum Age at entry: 65 Years (Age nearer birthday)
  • Maximum Maturity Age: 75 Years (Age nearer birthday)
  • Policy Term: 5, 10, 15, 20, or 25 years
  • Sum Assured: Minimum sum assured 10 lakh, thereafter in multiples of Rs. 1,00,000

Rebate ( Discount on policy):

  • Yearly: 2% of tabular premium
  • Half yearly: 1% of tabular premium
  • Quarterly: Nil
  • Monthly: 5% extra of tabular premium
  • Sum Assured rebate: Rs. 0.50 per thousand Sum Assured on above Rs.50 lakh SA.

 


Update: LIC Jeevan Pramukh Plan No. 167 Has Been Discontinued.