Wednesday 21 September 2011

LIC Endowment Plus Policy: Review Analysis & Details

This article contains LIC Endowment Plus Policy Review Analysis & details.
You must have seen the ad on TV about a kid asking his young elder brother about the kind of girl he wants to marry, and he replies that he wants to marry a girl who is in government job (with job security), so that atleast one person keeps earning forever. The kid then replies that instead of looking for such secure job girl, its better to take LIC Endowment Plus Policy. Let us see whether this Endowment Plus policy really helps to achieve the kind of financial security which the ad claims to offer or is there something better to do.

LIC Endowment Plus Policy offers investment-cum-insurance during the term of the policy and is available for people under 7-60 years for a policy term between 10 years and 20 years.

LIC Endowment Plus Policy: Review Analysis & Details


The minimum annual premium under the policy is Rs 20,000 for regular modes and a risk cover of up to 11-30 times of annualized premium or 1.25 times of single premium.
The policy holder, it said, has the option to choose any of the 4 funds namely - Bond Fund, Secured Fund and Balanced Fund Growth Fund.
The option of switching within the funds is available any number of times during the duration of policy. The first four switches every year are free of charge and Rs 100 is levied thereafter per switch.

What are the unique features of the LIC Endowment Policy?
Endowment Plus Policy Features :
- It is a Unit Linked Endowment plan.
- Minimum Risk Cover is guaranteed.
- Entry age: 7 to 60 years. LIC Endowment Policy
- Maturity Age: 18 to 70 years.
- Term: 10 to 20 years.
- This plan has facility for Loan after 3 years from commencement.
- Partial Withdrawal is possible after 5 years from commencement.
- Plan can be availed on the life of a child, above the age of 7 years.
- It has 2 optional riders, which means extra protection.

What are the available options in the LIC Endowment policy?
for basic plan

a) minimum basic sum assured:
Regular Premium policies: (Policy Term +1) times the annualised premium
single premium:
For age at entry below 45 years: 1.25 times the single premium
For age at entry 45 years and above: 1.10 times the single premium

b) maximum basic sum assured:
Regular Premium policies:
30 times the annualized premium, if age at entry is upto 45 years
25 times the annualized premium, if age at entry is 46 to 60 years

Single premium policies:
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.
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.

c) minimum premium:
Regular premium (other than monthly (ECS) mode): Rs. 20,000 yearly
Regular premium (for monthly (ECS) mode): Rs. 1,750 p.m.
Single premium: Rs. 30,000

d) Maximum Premium:
Regular premium: Rs. 1,00,000 p.a.
Single premium: No Limit
Annualized Premiums and single premium shall be payable in multiple of Rs. 1,000 for
other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-
e) minimum entry age: 7 years last birthday
f) maximum entry age: 60 years nearest birthday
g) policy term : 10 to 20 years
h) minimum maturity age: 18 years completed
i) maximum maturity age: 70 years nearest birthday
Age at entry for the policyholder is to be taken as age nearest birthday except for the
minimum age at entry i.e. 7 years.

For Accident Benefit
a) Minimum Sum Assured: Rs. 25,000
b) Maximum Sum Assured: Rs. 50,00,000 taking all existing policies of the Life Assured under individual as well as group schemes taken with Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.
c) Minimum / Maximum Premium: No separate Limit
d) Minimum Entry Age: 18 years completed
e) Maximum Entry Age: 60 years nearest birthday
f) Policy Term: 10 to 20 years
g) Maximum Maturity Age: 70 years nearest birthday

Sum Assured shall be available in multiples of Rs. 5,000
For Critical Illness Rider Benefit
a) Minimum Sum Assured: Rs. 50,000
b) Maximum Sum Assured: Rs. 10,00,000 taking Critical Illness riders availed under all existing policies of the Life Assured with the Corporation and the Critical Illness Rider Sum Assured under the new proposal under consideration.
c) Minimum /Maximum Premium: No separate Limit
d) Minimum Entry Age: 18 years completed
e) Maximum Entry Age: 50 years nearest birthday
f) Policy Term: 10 to 20 years
g) Maximum Maturity Age: 60 years nearest birthday

What are the age limits for LIC Endowment policy?
Age limit is 7-60 years for LIC Endowment Policy.
How can I pay premium for LIC Endowment policy?
Regular premium can be paid either in yearly, half yearly, quarterly or monthly (ECS) installments.
Min. premium Rs. 20,000/- yearly or Rs.1750 per month by ECS mode.
Single Premium is also allowed under LIC Endowment Plus plan. Minimum onetime investment Rs.30,000/-

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