LIC Endowment Plus
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 |
Benefits
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.
When the policy matures, the Fund Value is paid to the policyholder as Maturity Benefit.
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.
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 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.
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.
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.
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.
This plan does not acquire any surrender value at any point of time.
How it works
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.
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 |
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.
Eligibility
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/-.
FAQs
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.
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.
There is no loan available under this plan.