ENDOWMENT PLUS NEW UNIT LINKED PLAN FROM LIC OF INDIA

Life Insurance Corporation of India has introduced its ULIP plan under the new IRDA regime, following the launch of its Pension Plus which is the first Unit-linked Pension Plan under the new regime. 

Endowment Plus is LIC’s 16th plan approved and the Corporation’s performance in all the ULIP plans to date has been commendable. Most of its policy holders have got handsome rewards on their investments through ULIPs besides its credible performance in Pension and Insurance. 

Endowment Plus is a unit-linked product that offers investment-cum-insurance during the term of the policy. The Policy is available for people aged 7 years to 60 years for a policy term between 10 years and 20 years. The minimum annual premium under the policy is Rs 20,000 for regular modes. Under ECS mode it is Rs 1,750 per month and minimum single premium is Rs 30,000. The plan offers a risk cover of upto 11-30 times of annualized premium or 1.25 times of single premium. Critical illness and accident benefit riders are also the benefits available with this policy. 

The policy holder has the option to choose any of the 4 funds namely: 

· Bond Fund 
· Secured Fund 
· 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 a charge of Rs. 100 is levied thereafter per switch. 

If the Policy is in full force a policy holder can avail a loan under the policy after 3 years to the extent of 30% of the policy holder’s fund value and partial withdrawal is allowed after 5 years subject to conditions. Full risk cover will be available after two years from the date of partial withdrawal. Surrender value is available after 5 years incase of discontinuance of policy at any stage. Incase of withdrawal after 5 years full fund value is payable provided that the policy is in force. 

Decreasing discontinuance charge upto a maximum of 10% for policies with annualized premium upto Rs 25,000 or 6% for annualized premium above Rs. 25,000 upto the end of the 4th year is applicable. 

Another feature of this plan is that mortality charges are deducted only if the basic sum assured is more than that of the fund value of the units. There is also an option to encash fund in regular intervals spread over a period of 5 years from the date of maturity. 

At maturity the policy holder will be eligible for fund value under the policy. Incase of death, the nominee will get the higher of the sum assured under the basic plan and the policy holder’s fund value. 

Premium allocation charges under the policy are 7.5% in the first year, 5% from 2nd to 5th year and 3% thereafter. Single premium allocation charges are 3.3%, Fund management charges may vary from 0.5% for Bond Fund to 0.8% for Growth Fund.

LIC Endowment Plus

Endowment Policy     

LIC’S ENDOWMENT PLUS (Plan No. 802):

Summary:
LIC’s Endowment Plus (Table No.802) is a unit linked Endowment plan which offers investment-cum-insurance during the term of the policy.
You can choose the level of cover within the limits, which will depend on mode and amount of premium you want to pay.
LIC Endowment Plus plan features at glance:

• Critical Illness Benefit
• Accident Benefit
• Partial withdrawals
• Loan on policy

BENEFITS:
a) Benefits payable on death:
In case of death of the policyholder when the cover is in full force, the nominee shall be
eligible to get higher of Sum Assured under the Basic Plan and the Policyholder’s Fund Value
as at the date of booking the liability. The liability shall be booked after receipt of intimation
along with death certificate.
b) Benefits payable on maturity:
On maturity the policy holder will receive an amount equal to the his Fund Value.
Accident Benefit Rider Option:
Accident Benefit (AB) can be availed of as an optional Rider benefit by paying an additional premium of Rs.0.50 for every Rs.1,000/-
The Policyholder will have the option to choose any 1 of the below 4 Funds:

1. bond fund
2. secured fund
3. balanced fund
4. growth fund

MODES OF PREMIUM PAYMENT:
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/-
Eligibility and other conditions for LIC Endowment plus Table No. 802:
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
Fund Switching: Within a given policy year, 4 switches will be allowed free of charge.
Top-up Premium: Not allowed.
Partial withdrawals: A policyholder can partially withdraw the units at any time after the fifth policy anniversary and provided all due premiums till date of partial withdrawal have been paid.
LOANS:
Loan will be available under this plan subject to the following conditions:
• Loan will be granted under the policy after completion of three years and provided all due premiums have been paid.
• Policy Loan will be available to the extent of 30 % of the Policyholder’s Fund value.
• No Partial Withdrawal will be allowed if any loan is outstanding.
• If the Fund Value at any time is less than or equal to the loan outstanding along with interest thereon, the policy will be compulsorily terminated.
The rate of interest charged for this loan amount would be determined from time to time by LIC. Presently the rate of interest is 9 % p.a. payable half-yearly.
Allocation Charges:
The allocation charges are as below:
For Single premium policies: 3.3%
Allocation Charges for Regular premium policies:
First Year: 7.50%
2nd to 5th Year: 5.00%
Thereafter: 3.00%
a) POLICY ADMINISTRATION CHARGE – The Policy Administration charge of Rs. 30/- per
month during the first policy year and Rs 30/- per month escalating at 3% p.a. thereafter.
b) FUND MANAGEMENT CHARGE – Fund Management Charges (FMC) are dependent on
type of Fund and are deductible on the date of computation of NAV at the following rates:
0.50% p.a. of Unit Fund for “Bond” Fund
0.60% p.a. of Unit Fund for “Secured” Fund
0.70% p.a. of Unit Fund for “Balanced” Fund
0.80% p.a. of Unit Fund for “Growth” Fund