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LIC Endowment Plus

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This plan has been withdrawn by the insurance company and is no longer available for sale.

LIC Endowment Plus Plan - Table No. 802

 
LIC’s New Endowment Plus Plan is a unit-linked insurance plan popularly called as ULIPs. This plan offers you both insurance and investment benefits.. You can invest your money in a choice of 4 funds as per the your risk appetite. The Fund Value is paid on policy maturity as Maturity Benefit to the policyholder. If the Life Insured dies within the policy tenure, the nominee would receive the Sum Assured or the Fund Value, whichever is higher.

Launch Date 27th August, 2010
Plan Details Table No. 802
Policy Type ULIP
UIN 512L261V01
 

Key Features of LIC Endowment Plus Policy

  • Unit linked insurance plan with choice of 4 investment funds
  • Higher of Sum Assured or Fund Value will be paid as Death Benefit
  • Choice of two riders is Accidental Death Benefit and Critical Illness Benefit cover
  • Option to decrease the Sum Assured during the policy tenure
  • Income Tax Benefit under Sections 80C & 10 (10D)
 

How does the LIC Endowment Plus Plan work?


The premium paid by you, after deduction of Premium Allocation Charge is invested into the 4 Funds of your choice. The details of the Fund Options are mentioned later in this page. You will receive Units of the Funds based on the NAV of these funds at the time of purchase. The value of funds will be determined by the NAV of funds which keeps changing on a daily basis depending on how they are invested. The Units x NAV of the funds you hold gives you the Fund Value of your investments on a daily basis. There are a list of charges which are applicable in this plan - details will be explained in the “Charges” section later in this article.  

In case of death of the policyholder during the life of the policy, the higher of the Sum Assured of Fund Value is paid to the nominee. In case the policyholder survives the policy term, the Fund Value is paid as the Maturity Benefit.
 

Benefits in the LIC Endowment Plus Policy


Death Benefit

Higher of the Sum Assured or the Fund Value will be paid to the nominee in case of death of the policyholder during the term of the policy.


Maturity Benefit 

When the policy matures, the Fund Value is paid to the policyholder as Maturity Benefit.


COMPARE THIS PLAN WITH OTHER ULIP PLANS

 

Eligibility Conditions in LIC Endowment Plus Policy

 
  Minimum Maximum
Policy Term 10 years 20 years
Premium Payment Term Same as policy term
Age of Entry 7 years (completed) 60 years (nearest birthday)
Age at Maturity 18 years (completed) 70 years (nearest birthday)
Premium Payment Modes Single, Yearly, Half-yearly, Quarterly & Monthly
Premiums Yearly - Rs. 20,000
Half-yearly - Rs. 13,000 p.a.
Quarterly - Rs. 8,000 p.a.
Monthly - Rs. 1,750
Single - Rs. 30,000
Single - No limit
Yearly, Half-yearly, Quarterly & Monthly - Rs. 1,00,000 p.a.


Minimum Sum Assured:

Regular Premium policies: (Policy Term +1) times the annualized premium 

Single Premium:
  • For age at entry of below 45 years: 1.25 times of the single premium 
  • For age at entry of 45 years and above: 1.10 times of the single premium


Maximum Sum Assured:

Regular Premium policies:
  • 30 times of the annualized premium if age at entry is upto 45 years
  • 25 times of the annualized premium if age at entry is 46 to 60 years

Single Premium Policies:
  • If Critical Illness Benefit Rider is opted for: 
    • 5 times the Single premium if age at maturity is upto 55 years.
    • 3 times the Single premium if age at maturity is 56 to 60 years.
  • If Critical Illness Benefit Rider is not opted for: 
    • 5 times the Single premium if age at maturity is upto 65 years.
    • 3 times the Single premium if age at maturity is 66 to 70 years.

Where the minimum Sum Assured is not in the multiples of Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000. Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall in multiples of Rs. 250/-.

 

Other Features of LIC Endowment Plus Policy


Investment Fund Options
 
Fund Name Risk - Return Investments
Bond Fund Low Risk At least 60% in Government Guaranteed Securities & Corporate Debt. 
Rest in other money market instruments and listed shares
Secured Fund Low to Medium Risk - Steady Income At least 45% in Government Guaranteed Securities & Corporate Debt. 
Rest in other money market instruments and listed shares
Balanced Fund Medium Risk - Balanced Income & Growth At least 30% in Government Guaranteed Securities & Corporate Debt. 
Rest in other money market instruments and listed shares
Growth Fund High Risk - Long term Capital Growth At least 20% in Government Guaranteed Securities & Corporate Debt. 
Rest in other money market instruments and listed shares


The Daily NAVs of these funds are mentioned in the links at the end. You can track how your funds are performing on a daily basis.


Switching

There are 4 free switches allowed in each policy year beyond which there is a charge of Rs. 100 applicable to each switch. Switching is basically moving your investments from one fund to another. In case you want to change the Fund Options you had earlier decided, you can do the Switch.


Partial Withdrawal

Partial withdrawal is allowed after the 5th policy anniversary. Partial withdrawal shall be allowed subject to maintaining a minimum balance of 2 Annualised Premium Value as the Fund Value for Regular Premiums and at least 25% of the Single Premium in case of Single Premium Plan. You cannot do any partial withdrawals till you attain the age of 18 years.


Riders

The following 2 riders can be additionally selected. You will need to pay additional premiums for the same.
  • Accidental Death Benefit Rider
  • Critical Illness Benefit Rider.

Free look Period

if the policyholder is not convinced with the terms and conditions of the policy, s/he can cancel the policy within 15 days from the receipt of the policy document.
 

Charges in the LIC Endowment Plus Plan


Premium Allocation Charge

Every time you pay your premiums, this amount is deducted from it before it is invested in the Funds of your choice.
 
Policy Year Charge
1st 7.5% of premiums
2nd to 5th 5% of premiums
6th onwards 3% of premiums


We now have plans with ZERO Premium Allocation Charges. Click to Compare ULIPs.


Policy Administration Charge

This is the charge for the administrative working of the policy.
 
Policy Year Charge
1st year Rs. 30 per months
2nd year onwards Increases by 3% every year


Fund Management Charge

This is deducted daily as a percentage of the Fund Value. So the NAV reported for the day will be net-off this charge
 
Fund Type Charge
Bond Fund 0.5% per annum
Secured Fund 0.6% per annum
Balanced 0.7% per annum
Growth 0.8% per annum


Discontinuation Charge

In the event that you discontinue your plan before the end of the policy term, this charge will be applicable. This is charged by deducting the units which you hold.
 
Year of Discontinuation Annual premium <= Rs. 25,000 per annum Annual premium > Rs. 25,000 per annum
1st Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs. 2,500 Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs. 6,000
2nd Lower of 7.5% of (Annual Premium or Fund Value) subject to a maximum of Rs. 1,750 Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs. 5,000
3rd Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs. 1,250 Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs. 4,000
4th Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs. 750 Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs. 2,000
5th onwards Nil



Mortality Charges

This charge is applied to provide you with the life insurance cover. It is done by deducting units which you hold proportional to the charge amount. A sample of the amount for different ages is as mentioned below. This rate is per 1,000 Sum Assured.
 
Age (years) 25 35 45 55
Rate 1.42 1.73 3.89 10.76


Critical Illness Benefit (Rider) Charge

This charge is applied to provide you with the Critical Illness Rider Benefit. It is done by deducting units which you hold proportional to the charge amount. A sample of the amount for different ages is as mentioned below. This rate is per 1,000 Sum Assured.
 
Age (years) 25 35 45 55
Rate 0.91 1.80 5.31 14.44
 

Accidental Benefit (Rider) Charge

This charge is applied to provide you with the Accident Benefit Rider. It is done by deducting units which you hold proportional to the charge amount. It is deducted at the rate of 0.50 per 1,000 Sum Assured per year.

 

What happens if...


You stop paying the premium before 5 policy years

After the grace period of paying the premiums gets over, then the policy is terminated. The Fund Value after deducting the Discontinuation Charges will earn an interest rate of 3.5% per annum and you can withdraw the money after 5 years.


You stop paying the premium after 5 years

After the grace period of paying premiums is over, the policy will be terminated. The Fund Value as on the date of termination will be payable to you. The money if not withdrawn will not be managed and there will be no appreciation.

You want a loan against your policy - There is no loan available under this plan.

 

Other Features of the LIC New Endowment Plus Plan

  • Free-look Period – If the policyholder is not happy with the plan, he can cancel the policy within 15 days of receiving the policy documents. This period is called the free-look period. Upon cancellation, the premium paid, net of any applicable expenses would be returned.
  • Grace Period - In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date. In case of monthly payment, the grace period is of 15 days.
  • Surrender Value - This plan does not acquire any surrender value at any point of time.
If you have any questions on the LIC Endowment Plus Policy, drop in a line in the comments and we will be happy to help out.

 
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