LIC Limited Premium Endowment Plan (Table No. 830) Review, Premium, Return calculation

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LIC Limited Payment Endowment Plan 830 reviewLIC Limited Premium Endowment Plan (Table No. 830) is the new plan joining the list of LIC insurance policy. This is another endowment plan from LIC with few changes. As the name suggest in this policy one have to pay a premium for limited time rather than the entire policy term. LIC endowment plans are mixture of insurance plus savings scheme. You can check out the other endowment policies from LIC launched already.

Key Features of LIC Limited Premium Endowment Plan 830

  • Minimum age to enter into this policy is 18 years
  • One can buy this policy for 12, 16 or 21 year term
  • Premium paying term is less as said earlier. It’s up to 8 years or 9 years max.
  • Minimum amount to invest in this policy is 3,00,000
  • There is no limit for Maximum sum assured amount

Benefits of LIC Limited Premium Endowment Plan

  • In case of death nominee will get Sum assured + Accured Bonus + FAB if any as Death Benefit.
  • Sum assured on death will be either 10 times of annual premium paid or 125% of basic sum assured. And in any case death benefit can’t be less than 105% of all premium paid.
  • At the end of the policy term insurer will get the sum assured + bonus + FAB if any as maturity benefit. We will check out how much return this policy will give below.
  • You can enjoy income tax benefit under section 80C for premium paid.
  • In this policy you can also avail Accidental Death and Disability Benefit Rider and LIC’s New Term Assurance Rider (UIN: 512B210V01)
  • Get rebate on High Sum Assured value
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Mode and High S.A. Rebates:
Mode Rebate:
Yearly mode                               –       2% of Tabular Premium
Half-yearly mode                       –       1% of Tabular premium
Quarterly & Salary deduction   –      NIL
High Sum Assured Rebate: 
Basic Sum Assured (B.S.A)                     Rebate (Rs.)
3,00,000 to 4,90,000               –           Nil
5,00,000 to 9,90,000               –           0.50%o B.S.A.
10,00,000 to and above         –           0.75%o B.S.A.

Premium Calculations

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One can pay premium yearly, half-yearly, quarterly or monthly mode (through ECS only) or through salary deductions over the term of policy. A grace period of 30 days will be valid for premium payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.

The premium calculation will be as below:
Age of Entry : 35 Years
Policy Term : 12 years
Premium Paying Terms: 9 years
Mode of Payment: Yearly
Sum Assured: 3,00,000
Premium To be paid: 30,091

Maturity Return Calculation

From the above premium calculation you can say that you have to pay total 30,091 X 9 = 2,70,000 (approx) to get Sum Assured of 3,00,000 + Bonus after 12 years (Bonus will not be more than 4 % as per LIC record). It means after 12 years you will hardly get 4 -5 % as return on long term investment. Again you have to consider that this is an insurance policy. But from a life cover point of view I don’t think this plan can give you maximum benefit.

Should I buy LIC Limited Premium Endowment Plan 830

So far whatever policies launched by LIC, they follow a similar structure of calculation. If you consider that as an insurance product then the life cover is almost negligible. If you consider that as a investment product then again you will get very less return. So LIC tried to combine investment and insurance once again in this policy. As an investor you have better alternative available in market. Again I will say the same thumb rule one should follow for a best financial plan : buy a 1 crore pure term insurance plan and invest rest of the amount in low risk investment products or mutual funds.

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Waiting for your feedback or any input regarding this policy. I know LIC agents are in action to sell this policy to customers. You can show them this article and ask them to prove this analysis wrong by putting a simple comment. Hope this way at least you will understand what I am trying to say here. Your valuable feedback whether positive or negative is always welcome. Thanks for reading…

10 COMMENTS

  1. Insurance is not that you die and your dependants will get sum insured. LIC gives a return which is average but for that also someone is giving in instalment. Also the return is TAX FREE also with 100% guarantee. If some one says LIC gives low returns then some one will also argue that in a Rs100 loan you have to pay Rs250 at the end of the term. LIC is different from pvt. players.
    Return is always high by taking low amount as compared to other pvt. insurers.

  2. Hi Santanu,

    I read your article, but i’m still in a dilemma to buy a good policy for my kid education needs. could you assist which policy will be good.

    I have gone through LIC Jeevan Tarun as well as SBI smart champ

    • If your target of investment is to accumulate money for your kid’s education then why you are buying an insurance policy?
      Simply save money in a pure investment product like PPF, Mutual fund for long term. And with that buy a term plan.

  3. Hello Santanu,

    Thanks for your valuable post. I am wondering why people are falling into LIC blindly like sheeps by knowing the returns are very lower 🙂 Actually the thing is all my colleagues advised me to take some/any LIC policy post my marriage and LIC is the basic need you need to have in life, they advised. But I analyzed LIC, online term insurance, PPF, mutual funds etc and concluded the same like you thought 🙂

    I strongly agree your point of taking a pure term insurance and investing our money in some equity mutual funds.

    -Sabha

  4. Hi santanu, Thanks for the details. How about this plan for the people aged 60+? I find this is the only policy which has max eligible age capped to 62 years and provided cover till 12 years with 9 year premium term.

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