The Limited Endowment Plan, which is under the aegis of LIC, is an endowment plan that provides its users with a dual benefit of investment and insurance. Since this policy is one of a limited pay profile, the payment term of the premium is considerably less than that of a regular policy term. The duration of the lock-in period offered by this plan has 2 variants, one of 12 years, the other of 16 years and the final one of 21 years. However, the premium which is paid has to be paid for 8 to 9 years. This depends on the option chosen by the user at the very beginning of adopting the plan.
On the basis and pretext of the basic assured sum, the policyholder’s age, the term of the policy chosen by the policyholder and the term of payment of the premium along with the choice of selected riders for the plan, the annual premium of the policyholder is decided and he/she is charged accordingly.
