LIC Limited Premium Endowment Plan 830 Review

By | April 26, 2016
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LIC-Limited-Premium-PlanLIC Limited Endowment plan 830

An introduction to the LIC Limited Endowment plan 830 :

LIC Limited Premium Endowment Plan 830 is a renowned policy that has a choice of Limited Period premium payment. Under LIC Limited Endowment Plan 830 the payment of premiums is limited in contrast to the policy tenure. Suppose if policy holder has taken 12 years policy tenure then he / she will be required to pay the premium either 8 or 9 years maximum which is limited period of premium payment tenure. LIC limited endowment plan 830 offers a combined facility of protection & saving. This plan offers bonus which will be affirmed on this policy every year. This LIC Limited Premium Endowment Plan 830 insurance plan financially aids the family of policy holder in case the policy holder expires unfortunately before maturity or a lump sum amount on maturity if the policy holder continues to exist.

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Entry age in case of the Lic Limited Premium Endowment Plan 830

  • Minimum Entry age -18 years (Completed)
  • Maximum Entry age is based on tenure policy which is tabulated below

Maximum Entry age

Tenure of the policy Premium payment tenure 8 years Premium payment tenure 9 years
12 Maximum age is 57 years Maximum age is 62  years
16 Maximum age is 59 years Maximum age is 59 years
21 Maximum age is 54 years Maximum age is 54 years

 

Terms & Eligibility Conditions of the Lic Limited Premium Endowment Plan

Sum Assured : ·         minimum  –  Rs.3, 00, 000

·         maximum  –  No limit

Policy tenure : ·         12, 16, 21 years
Premium payment tenure : ·         8, 9 years
Premium payment mode : ·         Annually, Half – Annually, Quarterly,  monthly(ECS, SSS)
Minimum Accident demise advantage : ·         1 lakh
Maximum Accident demise advantage : ·         1 crore
Maximum cover ceasing age : ·         69 years (Nearest birthday) for 12 year policy tenure & 8 years Premium payment tenure.

·         70 years (Nearest Birthday) in all other cases.

Grace Period : ·         If the Premium is not paid within the time then a delay of 30 days for Annually, Half-Annually & Quarterly modes & 15 days for monthly mode is extended to pay the premium amount which is grace period.

 

Rebates  under the Limited Premium Endowment Plan 

Rebate basically implies offering Discount on Premium. There are two kinds of Rebates as mentioned under :

  • Based on Sum assured Rebate
  • Mode Rebate

Sum Assured Rebate :

Basic Sum Assured (or) Policy Value Rebate per Rs.1, 000 of Sum Assured
Rs. 3, 00, 000 to Rs. 4, 90, 000 NIL
Rs. 5, 00, 000 to Rs. 9, 90, 000 0.50 percent of Basic Sum Assured
Rs. 10, 00, 000 & above 0.75 percent of Basic Sum Assured

Corporate Employees Insurance Scheme (CEIS) Rebate: 5  percent on tabular Premium for all LIC Employees.

Mode Rebate:

Premium Payment mode Percentage
Annually Mode 2 percent  of Tabular Premium
Half-Annually Mode 1 percent  of Tabular Premium
Quarterly & Monthly NIL

 

Advantages  of the Limited Premium Endowment Plan 830 

Demise Advantage : In case of demise of the Life Insured within the policy tenure, then the nominee gets the ‘Sum assured on demise’, Simple Reversionary Bonus & Final extra Bonuses(if any). Sum assured on demise means 10 times of annualized premium or 125 percent of basic sum assured or 105 percent of all premiums will be duly paid. Demise advantage shall not be less than 105 percent of all premiums paid as on date of demise.

Maturity Advantage : In case the policy holder continues to exist till the end of policy tenure then policy holder will obtain Sum Assured on Maturity, Bonus & Final added Bonus (if any). Here the Sum Assured on Maturity is equivalent to the Basic Sum Assured.

Purchasing Procedure of the Limited Period Endowment Plan

The necessary Documents needed to purchase the LIC Limited Premium Endowment Plan 830 are mentioned below :

  • Application form / Proposal form along with photo :
  • Address proof :
  • Age proof :
  • Medical reports (if required) :

 

Claim Process of the  Lic Limited Period Endowment Plan

The documents needed for claim procedure under the LIC Limited Payment Endowment Plan 830 are mentioned below :

  • NEFT form :
  • Discharge form :
  • Cancel check or Bank Pass book Xerox :
  • Policy bond :
  • Demise certificate :

Premium Calculator of the Limited Endowment Plan 830

Under the LIC Limited Premium Endowment policy 830, you can compute the premium rates with the subsequent details :

  • Name :
  • Age :
  • E – Mail Id :
  • Mobile Number :
  • Policy tenure :
  • Premium payment tenure :
  • Sum assured :

An illustration of the Lic Limited Endowment Plan 830

Presume, Viren had determined to purchase the new limited endowment plan lic. His details are specified below :

  • Age : 25
  • Policy tenure : 12 years
  • Premium payment tenure : 8 years
  • Sum assured : Rs.10, 00, 000

Now, Viren has to pay premium with & without tax that are changing from first year premium to remaining year’s premium. To identify with more clearly, refer the next table prearranged below :

First Year Premium

Mode of Payment Without tax Tax With tax
Annually premium Rs. 2, 74, 433 / – Rs. 8, 480 / – Rs. 2, 82, 912 / –
half annually premium Rs. 1, 38, 608 / – Rs. 4, 283 / – Rs. 1, 42, 891 / –
Quarterly premium Rs. 70, 000 / – Rs. 2, 163 / – Rs. 72, 163 / –
Monthly premium Rs. 23, 333 / – Rs. 721 / – Rs. 24, 054 / –

 

From Second Year to last year Premium

Mode of Payment Without tax Tax With tax
Annually premium Rs. 2, 74, 433 / – Rs. 4, 240 / – Rs. 2, 78, 673 / –
half annually premium Rs. 1, 38, 608 / – Rs. 2, 141 / – Rs. 1, 40, 749 / –
Quarterly premium Rs. 70, 000 / – Rs. 1, 082 / – Rs. 71, 082 / –
Monthly premium Rs. 23, 333 / – Rs. 360 / – Rs. 23, 693 / –

Obligation of medical reports has to be submitted in this Limited Endowment Plan Lic 830 as tabulated under : 

Medical Requirements
FBS, Lipidogram Elisa for HIV, Hb percent (Rs. 1140)

 

Added Information of the Limited Premium Endowment Plan (table no.830)

Loan facility : Loan facilities are obtainable after payment of premiums for at least 2 years under this lic limited premium policy 830. Maximum loan amount granted will be 90 percent for force policies & 80 percent for paid up policies.

Policy Renewal: If the premium is not paid by you within the grace period then the policy will lapse. If you are interested to carry on this policy then you can renew your policy on or before 2 years from the date of first unpaid premium.

Cooling – Off Period : In case you are dissatisfied with the policy, you can return the policy within a period of 15 days from the date of receiving of the policy.

Backdating policy : The policy can be backdated within the very same financial year.

Service Tax : 3.09 percent service tax is pertinent.

Proposal Forms : Proposal Form no. 300 or 340 will be used in this LIC’s limited premium endowment plan.

Suicide clause : In case the policy holder commits suicide for any of the reasons within 12 months of date of beginning of risk or from date of renewal, then 80 percent of premium for what he had paid will be returned to his assignees or nominees. If the policy holder commits suicide after 12 months then Full Sum assured plus the Bonus will be paid by corporation to his / her nominee.

Paid – up value : On demise the paid up value of sum assured is mentioned as :

Demise paid up sum assured = Sum Assured on demise x (number of premiums paid / number of premiums payable during the premium paying tenure).

The Sum assured on Maturity under a paid up policy shall be decreased, which is mentioned as :

Maturity paid up sum assured = Sum Assured on Maturity x (number of premiums paid / number of premiums payable).

Surrender value : obtainable after payment of complete 24 months premiums. There are 2 kinds of surrender value.

  1. Guaranteed Surrender Value (GSV) : GSV shall be a percentage of total premiums paid (net of taxes) exclusive of additional premium, if any & premium paid for riders, if chosen.  GSV factor shall be applicable to vested Simple Reversionary bonus, if any.
  2. Special Surrender Value (SSV) : Surrender Value shall be  the discounted  value of the Paid – up Sum Assured & vested simple reversionary bonuses.

Riders : Riders are obtainable under this LIC Limited Premium Endowment Policy 830. Accidental demise & disability advantages are also obtainable.

Policy Stamping : In, LIC Limited Premium Endowment Policy 830 stamping charges will be 20 paise per thousand sum assured.

Frequently asked questions under the Limited Endowment Plan Lic

Q1. Can you provide me the brief explanation / example about advantages covered in this LIC Limited Premium Endowment Policy 830?

A1. EXAMPLE: Suppose Viren aged 30 years decided to take Limited Premium Endowment Plan 830 for the policy tenure (PT) of 21 years & Premium Paying Tenure (PPT) of 9 years. He selects basic sum assured of Rs 3, 00, 000.

Now, Viren is needed to pay an annual premium of Rs 24, 320 for the premium paying tenure (9 years) only.

Case 1 : Demise during policy :

If Viren dies during the policy tenure, then his nominee will take delivery of the Demise Sum Assured i.e. 125 percent of Basic Sum Assured (125 percent of Rs. 3, 00, 000) + Accrued Bonuses. After this, the policies will terminate.

Case 2 : Accidental Demise during policy :

In case, during the policy tenure, Viren dies due to an accident, his nominee will take delivery of the Demise Sum Assured (125 percent of Rs 3, 00, 000) + Additional Accidental Sum Assured (Rs 3, 00, 000) + Accrued Bonuses. The policies will terminate post this event.

Case 3 : continued existence till maturity :

If Viren survives till the conclusion of policy tenure, he will get the Basic Sum Assured i.e. Rs 3, 00, 000 + Accrued Bonuses. Thereafter, policies will terminate.

Q2. Can I surrender my policy prior to maturity?

A2. You can surrender your policy prior to maturity. A policy acquires surrender value post completion of paying premiums of 2 years policy.

Q3. Is loan facility is obtainable under this policy?

A3. Yes, loan facility is obtainable under this policy after paying 2 years of complete premium.

Q4. If premium is not paid then is there any possibility of renewing the policy?

A4. If the premium is not paid by you within the grace period of 15 days for monthly mode & 30 days for remaining modes then the policy will lapse. If you are interested to carry on this policy then you can renew your policy on or before 2 years from date of first unpaid premium.

For further details, please refer the mentioned below official link :

Click here for Lic Limited Premium Endowment Policy

 

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