LIC’s Limited Premium Endowment 830 is a plan with the limited premium paying terms, non linked Endowment Assurance Plan with Profit. That combines protection with savings. Other benefits are also available under this plan like tax benefits, loan facility and rider benefits.
Sum assured: Minimum limit for sum assured is Rs. 3 lakh and there is no maximum limit.
Policy Term: 12, 16 or 21.
Premium Paying Term: 8 or 9 Year
Entry Age: The minimum entry age of the policyholder should be 18 years and the maximum age limit is 62 years.
Maximum Maturity Age: 75 Years.
Premium Payment Mode: Premium can be paid Monthly, Quarterly, Half Yearly or Yearly.
Maturity Benefits: on maturity, basic sum assured along with vested simple reversionary bonus and the final additional bonus is paid to the policy holder.
If the Death happens, the nominee will get:
Base Sum Assured + Simple Reversionary Bonus (every year) + Final Additional Bonus (applicable in the year of death)
Rider benefits: Accidental Death benefit is available during the policy term; accident benefit sum assured will be paid along with death benefit under the basic plan. Disability benefits are paid till 70 years of age of the policy holder.
Income Tax Benefit: Premium paid in this policy is tax exempted under section 80C. The maturity benefits are also exempted from tax under section 10(10D).
Liquidity Benefit: Policy holder can take a loan under this policy after completion of 2 full years of the Policy.
For simplicity study following table
|Min Age||18 Year|
|Max Age||62 Year|
|Max Maturity Age||75 YEar|
|Policy Term||12, 16, 21 Year|
|Premium Paying Term||8, 9 Year|
|Min Sum Assured||Rs. 3,00,000/-|
|Max Sum Assured||Any|
The example of Limited Premium Endowment Plan, 830.
Suppose someone of 30 years age is going to apply policy Limited Premium Endowment Plan, 830 for the Basic Sum Assured Rs. 10,00,000/-, and the Policy term of 16, 21 and 25 years with Premium Paying terms 8 and 9 years.
“Limited Premium Endowment” Table 830
Age: 30 Year
Basic Sum Assured: Rs. 10,00,000/-
|Plan||Limited Premium||Limited Premium||Limited Premium||Limited Premium||Limited Premium||Limited Premium|
|Age||30 Year||30 Year||30 Year||30 Year||30 Year||30 Year|
|Premium Paying Term||8 Year||8 Year||8 Year||9 Year||9 Year||9 Year|
|Policy Term||12 Year||16 Year||21 Year||12 Year||16 Year||21 Year|
|Basic Sum Assured||Rs. 10,00,000/-||Rs. 10,00,000/-||Rs. 10,00,000/-||Rs. 10,00,000/-||Rs. 10,00,000/-||Rs. 10,00,000/-|
|Double Accidental Benefit||Rs. 10,00,000/-||Rs. 10,00,000/-||Rs. 10,00,000/-||Rs. 10,00,000/-||Rs. 10,00,000/-||Rs. 10,00,000/-|
|Death Sum Assured||Rs. 12,50,000/-||Rs. 12,50,000/-||Rs. 12,50,000/-||Rs. 12,50,000/-||Rs. 12,50,000/-||Rs. 12,50,000/-|
|Premium First Year||Rs. 1,14,918/-||Rs. 99,152/-||Rs. 82,721/-||Rs. 1,04,827/-||Rs. 90,495/-||Rs. 75,498/-|
|Premium second Year Onwards||Rs. 1,12,443/-||Rs. 97,017/-||Rs. 80,940/-||Rs. 1,02,570/-||Rs. 88,546/-||Rs. 73,873/-|
|Total Premium Paid||Rs. 9,02,019/-||Rs. 7,78,271/-||Rs. 6,49,301/-||Rs. 9,25,327/-||Rs. 7,98,863/-||Rs. 6,66,482/-|
|Money Back At the Year||NA||NA||NA||NA||NA||NA|
|Money back %||NA||NA||NA||NA||NA||NA|
|Total Money Back||NA||NA||NA||NA||NA||NA|
|Maturity Return||Rs.14,80,000/-||Rs. 17,45,000/-||Rs. 21,50,000/-||Rs.14,80,000/-||Rs. 17,45,000/-||Rs. 21,50,000/-|
|Total Return||Rs.14,80,000/-||Rs. 17,45,000/-||Rs. 21,50,000/-||Rs.14,80,000/-||Rs. 17,45,000/-||Rs. 21,50,000/-|
|Life Time Cover||NA||NA||NA||NA||NA||NA|
Above Calculations are approximate and according to current bonus rate. It may vary according to the rate of bonus and taxes.