Features

Entry Age and Maximum age: 6 years and 47 years respectively
Minimum and Maximum basic sum assured value: Rs. 75000 and no limit respectively
Policy Term: 12 years
Premium payment mode: Single premium insurance plan with easy liquidity

Benefits

Risk cover or sum assured value is 10 times the single premium value
Loan available after 3 months from the policy issuance date
Bonus addition after 5 years on exit if any
Death benefit
1. In case of death in first 5 policy years: Before the risk commencement- Payment of single premium without any interest payment would be made

After the commencement of risk- Sum assured on death is payable.

2. If death occurs upon completion of 5 years of policy term but before maturity date- Sum assured on death which is equivalent to 10 times the tabular single premium together with loyalty bonus if any shall be payable. Here ‘ Sum assured on death' is provided as highest of 125% of the single premium or guaranteed sum assured value on maturity i.e basic sum assured.

Maturity Benefit: If the life assured survives through the policy term, sum assured equal to basic sum assured along with loyalty additions if any is payable.
Rider facility - Accidental and disability riders available at an extra cost

Unique settlement option

With this plan LIC has come up with a one of its kind settlement option in which maturity or death benefits can be settled in installments of pre-defined periods of 5, 10 or 15 years. The facility is available on life assured below the age of 18 years and in respect of complete or partial benefit amount.
And an individual can get a maximum of Rs. 5000 per month, Rs. 15000 in a quarter, Rs. 25000 half yearly and Rs. 50,000 yearly. However the option for this unique settlement has to be exercised at the beginning of the policy.

Conclusion

LIC though it is a trusted brand, its endowment plans give a sub-optimal return of 5-6%. At the same time with a very low tenure and no risk coverage in the first five years of the policy term, this plan has nothing much to offer but its unique settlement feature can sound to be enticing but you should carefully look at your investment goal before parking your funds in this plan.