Endowment Plan, LIC, Insurance Plans

Endowment Plan Features

This is a unit linked Endowment plan which offers investment cum insurance cover during the term of the policy. You can choose the level of insurance cover within the limits, which will depend on the mode and level of premium you agree to pay.

You have a choice of investing your premiums in one of the four types of investment funds available. Premiums paid after deduction of allocation charge will purchase units of the Fund type chosen.

Payment of Premiums: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy.

A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (through ECS) premiums.

Eligibility Conditions And Other Restrictions:

(a) Minimum Age at entry – 7 (age last birthday)

(b) Maximum Age at entry – 60 years (age nearer birthday)

(c) Minimum Maturity Age – 18 years (completed)

(d) Maximum Maturity Age – 70 years (age nearer birthday)

(e) Policy Term – 10 to 20 years

(f) Minimum Premium –

Regular premium (other than monthly (ECS) mode): Rs. [20,000] p.a.

Regular premium (for monthly (ECS) mode): Rs. [1,750] p.m.

Single premium: Rs. [30,000]

(g) Maximum Premium –

Regular premium: Rs. [1,00,000] p.a.

Single premium: No Limit

(h) Sum Assured under the Basic Plan –

Minimum Sum Assured:

Regular Premium policies:(Policy Term +1) times the annualized premium

Single Premium:

For age at entry of below 45 years: 1.25 times of the single premium

For age at entry of 45 years and above: 1.10 times of the single premium

Maximum Sum Assured:

Regular Premium policies:

30 times of the annualized premium if age at entry is upto 45 years

25 times of the annualized premium if age at entry is 46 to 60 years

Single Premium Policies:

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.

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.

Where the minimum Sum Assured is not in the multiples of Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000. Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall in multiples of Rs. 250/-.

Investment of Funds: The premiums allocated to purchase units will be strictly invested according to the investment pattern committed in various fund types. As given:

Fund Type	Investment in Government / Government Guaranteed Securities / Corporate Debt	Short-term investments such as money market instruments	Investment in Listed Equity Shares	Details and objective of the fund for risk /return	Details and objective of the fund for risk /return
Bond Fund	Not less than 60%	Not more than 40%	Nil	Low risk	ULIF001200910LICEND+BND512
Secured Fund	Not less than 45%	Not more than 40%	Not less than 15% &Not more than 55%	Steady Income Lower to Medium risk	ULIF002200910LICEND+SEC512
Balanced Fund	Not less than 30%	Not more than 40%	Not less than 30% & Not more than 70%	Balanced Income and growth Medium risk	ULIF003200910LICEND+BAL512
Growth Fund	Not less than 20%	Not more than 40%	Not less than 40% &Not more than 80%	Long term Capital growth High risk	ULIF004200910LICEND+GRW512

The Policyholder has the option to choose any ONE of the above 4 funds.

Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on a day-to-day basis and will be based on investment performance, Fund Management Charge of each fund type and shall be computed as:

Market value of investment held by the fund + Value of Current Assets – Value of Current Liabilities & Provisions, if any Number of Units existing on Valuation Date (before creation / redemption of Units)

Charges under the Plan:

A) Premium Allocation Charge: This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:

For Single premium policies: 3.3%

For Regular premium policies:

Premium	Allocation Charge
First Year	7.50%
2nd to 5th Year	5.00%
thereafter	3.00%

B) Charges for Risk Covers:

i) Mortality Charge – This is the cost of life insurance cover which is age specific and will be taken every month. The life insurance cover is the difference between Sum Assured under Basic plan and the Fund Value after deduction of all other charges.

The charges per Rs. 1000/- life insurance cover for some of the ages in respect of a healthy life are as under:

Age	25	35	45	55
Rs.	1.42	1.73	3.89	10.76

Critical Illness Benefit rider Charg-This is the cost of Critical Illness Benefit rider (if opted for). These are age specific and will be taken every month.

The charges per Rs. 1000/- Critical Illness Rider Sum Assured per annum for some of the ages in respect of a healthy life are as under:

Age	25	35	45	55
Rs.	0.91	1.80	5.31	14.44

Accident Benefit charge –It is the cost of Accident Benefit rider (if opted for) and will be levied every month at the rate of Rs. 0.50 per thousand Accident Benefit Sum Assured per policy year.

C) Other Charges: The following charges shall be deducted during the term of the policy:

Policy Administration charge – Rs. 30/- per month during the first policy year and Rs 30/- per month escalating at 3% p.a. thereafter, throughout the term of the policy shall be levied.

Fund Management Charge –It is a charge levied as a percentage of the value of units at 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

Fund Management Charge shall be appropriated while computing NAV.

Switching Charge – This is a charge levied on switching of monies from one fund to another. Within a given policy year 4 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch.

Bid/Offer Spread – Nil.

Discontinuance Charge – The discontinuance charge for regular premium policies is as under:

Where the policy is discontinued during the policy year	Discontinuance charges for the policies having annualized premium up to Rs. 25,000/-	Discontinuance charges for the policies having annualized premium above Rs. 25,000/-
1	Lower of 10% * (AP or FV) subject to a maximum of Rs. 2500/-	Lower of 6% * (AP or FV) subject to maximum of Rs. 6000/-
2	Lower of 7% * (AP or FV) subject to a maximum of Rs. 1750/-	Lower of 4% * (AP or FV) subject to maximum of Rs. 5000/-
3	Lower of 5% * (AP or FV) subject to a maximum of Rs. 1250/-	Lower of 3% * (AP or FV) subject to maximum of Rs. 4000/-
4	Lower of 3% * (AP or FV) subject to a maximum of Rs. 750/-	Lower of 2% * (AP or FV) subject to maximum of Rs. 2000/-
5 and onwards	NIL	NIL

AP – Annualised Premium

FV – Policyholder’s Fund Value on the date of discontinuance

There shall not be any discontinuance charge under Single Premium.

Service Tax Charge – A service tax charge, if any, will be as per the service tax laws and rate of service tax as applicable from time to time.

Miscellaneous Charge – This is a charge levied for an alteration within the contract, such as reduction in sum assured, change in premium mode and grant of Accident Benefit after the issue of the policy. An alteration may be allowed subject to a charge of Rs. 50/-.
D) Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the Premium Allocation charge and Mortality charge. The modification in charges will be done with prospective effect with the prior approval of IRDA.

Although the charges are reviewable, they will be subject to the following maximum limit.

Policy Administration Charge

Rs. 60/- per month during the first policy year and Rs. 60/- per month escalating at 3% p.a. thereafter, throughout the term of the policy

Fund Management Charge: The Maximum for each Fund will be as follows:

Bond Fund: 1.00% p.a. of Unit Fund

Secured Fund: 1.10% p.a. of Unit Fund

Balanced Fund: 1.20% p.a. of Unit Fund

Growth Fund: 1.30% p.a. of Unit Fund

Critical Illness Benefit charges shall not exceed by more than 200% of the current rate.
Switching Charge shall not exceed Rs. 200/- per switch.
Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested.

In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s Fund Value.

Discontinuance of Premiums:

If you fail to pay premiums under the policy within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:

Revival of the policy, or
Complete withdrawal from the policy

During the notice period of 30 days, the policy shall be treated as in force and the charges for Mortality, Accident Benefit and / or Critical Illness Benefit cover, if any, shall be taken in addition to other charges, by cancelling an appropriate number of units out of the Policyholder’s Fund Value. The cover shall continue till the date of discontinuance of the policy (i.e. till the date on which the intimation is received from the policyholder for complete withdrawal of the policy or till the expiry of the notice period).

If you do not exercise any option within the stipulated period of 30 days, you shall be deemed to have exercised the option of complete withdrawal from the policy.

The benefits payable under the policy during the notice period shall be same as that under an enforce policy, except Partial Withdrawal, which shall not be allowed if all due premiums have not been paid.

The benefits payable when you exercise the option for complete withdrawal or you do not exercise any option during the notice period shall be as under:

If the policy is discontinued within 5 years from the date of commencement of the policy: If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated. The Policyholder’s Fund Value as on the date of discontinuance of policy after deducting the Discontinuance Charge shall be converted into monetary terms as specified below and Proceeds of the discontinued policy as specified below shall be payable after completion of 5 years from the date of commencement of the policy.

If the policy is discontinued after 5 years from the date of commencement of the policy: If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated and Policyholder’s Fund value shall be payable.

Method of calculation of Monetary amount and Proceeds of the Discontinued Policy:

The conversion to monetary amount shall be as under:

The NAV on the date of application for surrender or as on the date of discontinuance of the policy (in case of complete withdrawal of the policy), as the case may be, multiplied by the number of units in the Policyholder’s Fund Value as on that date will be the monetary amount.

The Proceeds of the Discontinued Policy shall be calculated as under:

The monetary amount calculated as above shall be transferred to the Discontinued Policy Fund. This Fund will earn a minimum interest rate of 3.5% p.a. from the date of discontinuance of the policy to the date of completion of 5 years from the commencement of the policy. In case of death of the life assured, the interest shall accrue from the date of discontinuance of the policy to the date of booking of liability. The Proceeds of the discontinued policy shall be the monetary amount plus the interest accrued on the Discontinued Policy Fund.

Compulsory termination:

If the balance in the Policyholder’s Fund Value, at any time is

not sufficient to recover the relevant charges, in case of partial withdrawal of units after the fifth policy anniversary, or
less than or equal to the loan outstanding along with interest thereon, if any loan has been taken under the policy,

the policy shall compulsorily be terminated and the balance amount in the Policyholder’s Fund Value, if any, shall be refunded to the policyholder

Other Features:

Guarantee of interest rate on Discontinued Policy Fund: A guaranteed minimum interest rate of 3.5% p.a. shall be credited to the Discontinued Policy Fund constituted by the fund value of all discontinued policies.

Partial Withdrawals: You may encash the units partially after the fifth policy anniversary and provided all due premiums have been paid subject to the following:

In case of minors, partial withdrawals shall be allowed from the policy anniversary coinciding with or next following the date on which the life assured attains majority (i.e. on or after 18th birthday).
Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units.
For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic plan shall be reduced to the extent of the amount of partial withdrawals made.
Partial withdrawal will be allowed subject to a minimum balance of two annualized premiums in the Policyholder’s Fund Value in case of regular premium policies and 25% of the single premium paid in case of single premium policies.
Partial Withdrawal shall not be allowed if loan is availed under the policy.

Switching: You can switch between the four fund types for the entire Fund Value during the policy term subject to switching charges, if any.

Increase / Decrease of risk covers: No increase of covers will be allowed under the plan. You can, however, decrease the risk covers, without reducing the level of premium, once in a year during the Policy term, provided all due premiums under the Policy have been paid.

Revival: If due premium is not paid within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise the option for revival within a period of thirty days of receipt of such notice. If you exercise the option to revive the policy, then the arrears of premium without interest shall be required to be paid.

The Corporation reserves the right to accept the revival at its own terms or decline the revival of a policy.

Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges during the notice period, the policy shall terminate and thereafter revival will not be allowed.

Settlement Option: When the policy comes for maturity, you may exercise “Settlement Option” one month prior to the date of maturity and receive the policy money in instalments spread over a period of not more than five years from the date of maturity. There shall not be any life cover during this period and no charges other than Fund Management Charge shall be deducted. The value of installment payable on the date specified shall be subject to investment risk i.e. the NAV may go up or down depending upon the performance of the fund.

Reinstatement:A policy once surrendered cannot be reinstated.

Risks borne by the Policyholder:

LIC’s Endowment Plus is a Unit Linked Life Insurance products which is different from the traditional insurance products and are subject to the risk factors.
The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Endowment Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

Cooling off period:

If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under:

Value of units in the Policyholder’s Fund

Plus unallocated premium

Plus PolicyAdministration charge deducted

Less charges @ Rs.0.20per thousand Sum Assured under Basic plan

Less Actual cost of medical examination and special reports, if any.

Loan:Loan will be available under this plan subject to certain terms and conditions.

Assignment:Assignment will be allowed under this plan.

Endowment Plan Benefits

A) Death Benefit:

Higher of Sum Assured and the Policyholder’s Fund Value shall be available as death benefit.

B) Maturity Benefit:

On the Life Assured surviving to the end of the policy term chosen, an amount equal to the Policyholder’s Fund Value is payable.

Options:

A) Accident Benefit Option:

If you are above 18 years of age, you may opt for Accident Benefit equal to the amount of life cover subject to minimum of Rs. 25,000 and maximum of Rs. 50 lakh (taken all policies with LIC of India and other insurers.) In case of death due to an accident, an additional sum equal to Accident Benefit Sum Assured shall be payable.

B) Critical Illness Benefit Rider:

If you are between 18 and 50 years of age, you may opt for Critical Illness Benefit equal to the life cover subject to a minimum of Rs. 50,000 and maximum of Rs. 10 lakh (including other policies with LIC of India). This benefit will be available only till the policy anniversary on which the age nearer birthday of the Life Assured is 60 years or till the end of policy term, whichever is earlier. In case of diagnosis of defined categories of Critical Illness subject to certain terms and conditions, an additional sum equal to the Critical Illness Benefit shall be payable

Investment of Funds: The premiums allocated to purchase units will be strictly invested according to the investment pattern committed in various fund types. Various types of fund and their investment pattern will be as under:

Fund Type	Investment in Government / Government Guaranteed Securities / Corporate Debt	Short-term investments such as money market instruments	Investment in Listed Equity Shares	Details and objective of the fund for risk /return	Details and objective of the fund for risk /return
Bond Fund	Not less than 60%	Not more than 40%	Nil	Low risk	ULIF001200910LICEND+BND512
Secured Fund	Not less than 45%	Not more than 40%	Not less than 15% &Not more than 55%	Steady Income Lower to Medium risk	ULIF002200910LICEND+SEC512
Balanced Fund	Not less than 30%	Not more than 40%	Not less than 30% & Not more than 70%	Balanced Income and growth Medium risk	ULIF003200910LICEND+BAL512
Growth Fund	Not less than 20%	Not more than 40%	Not less than 40% &Not more than 80%	Long term Capital growth High risk	ULIF004200910LICEND+GRW512

The Policyholder has the option to choose any ONE of the above 4 funds.

Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge and whether fund is expanding or contracting under each fund type and shall be calculated as under:
Appropriation price is applied (when fund is expanding):

Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated).

Expropriation price is applied (when fund is contracting):

Market value of investment held by the fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units redeemed).

Applicability of Net Asset Value (NAV):

The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after such time by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.

Similarly, in respect of the valid applications received for surrender, partial withdrawal, death claim, switches and in case of complete withdrawal etc up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, partial withdrawal, death claim, switches and in case of complete withdrawal etc after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable

In case of discontinuance, as specified in Para 9 below, wherein the policyholder does not exercise the option within the period of 30 days of receipt of notice then the NAV as on the date of expiry of notice period shall be applicable.

In respect of maturity claim, NAV of the date of maturity shall be applicable.

The timing (presently 3 p.m.) is as per the existing guidelines and changes in this regard shall be as per the instructions from IRDA.

Surrender: The surrender value, if any, is payable as under:

If the policy is surrendered within 5 years from the date of commencement of the policy:

If you apply for surrender of the policy within 5 years from the date of commencement of policy, then the Policyholder’s Fund Value after deducting the Discontinuance Charge, if any, shall be converted into monetary terms as per para 10 below. This monetary amount shall be credited to the Discontinued Policy Fund and no charges shall be deducted thereafter. The Proceeds of the Discontinued Policy, as per para 10 below, shall be payable on completion of 5 years from the date of commencement of policy.

In case of death of life assured after the date of surrender but before the completion of 5 years from the date of commencement of policy the Proceeds of the Discontinued Policy shall be payable to the nominee/ legal heir immediately.

If the policy is surrendered after 5 years from the date of commencement of the policy:

If you apply for surrender of the policy after 5 years from the date of commencement of policy, then the Policyholder’s Fund Value, as at the date of surrender, shall be payable. There will be no Discontinuance Charge.