What is limited endowment plan?
Limited Premium Endowment policy from LIC is a participating endowment plan which offers the dual benefit of investment and insurance coverage. Being a limited-premium payment policy, the premium payment term is less than the policy term. The policyholder has an option to choose the policy term of 12, 16 and 21 years.
How is endowment policy maturity amount calculated?
We calculate the maturity amount by considering sum assured and bonuses. Note that this is a ‘positive cash flow’ and is payable in the next policy year, after the policy matures. Maturity Benefit = Sum Assured + Simple Reversionary Bonus (SRB) + Final Additional Bonus.
How is maturity amount calculated in LIC endowment assurance?
The maturity benefit includes the Sum Assured + Accrued simple reversionary bonus. Sum Assured + bonus accrued up to the date of death is paid as the death benefit if the death occurs during the term of the policy (Provided the policy is in full force at the time of death).
What is meant by endowment plan in LIC?
An endowment policy is essentially a life insurance policy which, apart from covering the life of the insured, helps the policyholder save regularly over a specific period of time so that he/she is able to get a lump sum amount on the policy maturity in case he/she survives the policy term.
What is the difference between endowment plan and term plan?
Term insurance is a life insurance product that offers life coverage to the insured. An endowment plan is a life insurance product that includes insurance and investment component. It is best suited for people who want to secure their family financially in their absence.
What is limited premium endowment plan-Plan 830?
LIC’s Limited Premium Endowment Plan -Plan 830 – is a non-linked with-profit endowment plan with a limited premium payment period. Premium can be limited to a relatively shorter period of just 8 or 9 years.
What is limited premium Endowment Policy participates in profits?
Limited Premium Endowment Policy Participates in Profits means Bonus will be declared on this policy every year. Limited Premium Endowment Plan 830 is also a Conventional Endowment Plan which means it is a combination of saving and insurance coverage policy.
What are the terms and conditions of an 8-9 year plan?
This plan is having fixed premium paying terms of 8 & 9 years and fixed policy terms 12, 16 & 21 years which allows policy holder to plan for financial requirements by paying less number of years and secure life and receive maturity at later stage. This plan may be recommended for everyone because of following reasons.