LIC Endowment Plus Plan 802

LIC Endowment Plus Plan 802 was a Unit Linked Insurance Plan (ULIP) that offered both life insurance protection and market-linked investment opportunities. Unlike conventional endowment plans that provide fixed benefits, the returns under this policy depended on the performance of the selected investment funds.

The plan was designed to provide financial security through life cover while also helping policyholders build wealth through investments in various market-linked funds. It offered flexibility in fund selection, allowing individuals to choose investment options based on their financial objectives and risk tolerance.

Launch and Withdrawal Details

• Launch Date: 20 September 2010
• Withdrawal Date: 1 January 2014

After the withdrawal of Plan 802, LIC introduced newer ULIP products such as the LIC New Endowment Plus Plan. However, information related to Plan 802 continues to be useful for existing policyholders and those reviewing older LIC products.

Eligibility and Policy Details

Feature	Details
Entry Age	7 Years to 60 Years
Policy Term	10 to 20 Years
Premium Paying Term	Equal to Policy Term
Premium Payment Modes	Yearly, Half-Yearly, Quarterly, Monthly (ECS), or Single Premium

Investment Options Available

LIC Endowment Plus Plan 802 provided multiple fund choices to suit different investment preferences.

Bond Fund

This fund was primarily intended for conservative investors and invested mainly in government securities and corporate bonds, focusing on stability and lower risk.

Secured Fund

The Secured Fund offered a moderate risk profile by investing largely in fixed-income instruments while maintaining limited exposure to equities for additional growth potential.

Balanced Fund

The Balanced Fund invested in a combination of equity and debt instruments, aiming to provide a balance between growth opportunities and risk management.

Growth Fund

This fund was primarily equity-oriented and targeted investors willing to accept higher market risk in exchange for potentially higher long-term returns.

Fund Switching Facility

The plan allowed policyholders to switch between available funds according to their changing investment needs and market conditions. Up to four fund switches could be made in a policy year without any switching charges, providing flexibility in managing investments.

Eligibility Criteria

Criteria	Regular Premium	Single Premium
Minimum Entry Age	90 Days (Completed)	18 Years (Completed)
Maximum Entry Age	50 Years (Nearest Birthday)	60 Years (Nearest Birthday)
Minimum Maturity Age	18 Years (Completed)	18 Years (Completed)
Maximum Maturity Age	60 Years (Nearest Birthday)	70 Years (Nearest Birthday)
Policy Term	10 to 20 Years	10 to 20 Years
Premium Paying Term	Equal to Policy Term	One-Time Premium

Premium and Charges

• Minimum annual premium under regular premium modes (excluding monthly ECS) was ₹20,000.
• The minimum monthly premium through ECS was ₹1,750.
• The minimum single premium amount was ₹30,000.
• Premium Allocation Charges were 7.5% during the first policy year, 5% from the second to the fifth year, and 3% from the sixth year onwards.
• Fund Management Charges (FMC) were approximately 0.7% per annum, subject to applicable policy provisions.

The premium paid was converted into units based on the Net Asset Value (NAV) of the selected fund on the date of premium allocation. The value of these units fluctuated according to market performance throughout the policy term.

Benefits of LIC Endowment Plus Plan 802

Maturity Benefit

If the policyholder survived until the end of the policy term, the accumulated fund value under the chosen investment funds was payable as the maturity benefit. The final amount depended on the performance of the selected funds and the number of units accumulated over the policy duration.

Death Benefit

In the event of the policyholder’s death during the policy term, the nominee received the higher of:

• Sum Assured on Death (after considering eligible partial withdrawals made during the previous two years), or
• The prevailing fund value of the policy at the time of death.

This benefit provided financial protection to the nominee while preserving the investment value built under the policy.

Partial Withdrawal Facility

Partial withdrawals were permitted after completion of five policy years. Policyholders could withdraw a specified amount or a fixed number of units from the fund value without surrendering the policy completely, offering flexibility for future financial requirements.

Loan Facility

A loan facility was available after completion of three policy years, provided premiums had been paid as required. The maximum loan amount generally extended up to 30% of the prevailing fund value.

Fund Switching Option

The policy allowed switching between available fund options to align investments with changing market conditions and risk preferences. Up to four fund switches could be made during a policy year without any switching charges.

Optional Riders

Additional protection could be obtained by choosing optional riders on payment of extra premium, including:

• Critical Illness Rider
• Double Accident Benefit Rider

These rider benefits provided enhanced financial support in specified contingencies.

How LIC Endowment Plus Plan 802 Worked

Under LIC Endowment Plus Plan 802, the premium paid by the policyholder was invested in the selected fund options through the allocation of units based on the prevailing Net Asset Value (NAV). Since NAV changed according to market movements, the value of the investment also fluctuated over time.

The policy fund value was determined by multiplying the total number of units held by the current NAV. As this was a unit-linked plan, investment returns depended entirely on market performance, and the associated investment risk was borne by the policyholder.

During the policy term, policyholders could monitor their fund performance and make use of available facilities such as fund switching, partial withdrawals, and policy loans. On maturity or death, the applicable policy benefits were paid according to the policy provisions.

LIC Endowment Plus Plan 802 Calculator

The LIC Endowment Plus Plan 802 Calculator was designed to help policyholders estimate premiums, projected fund values, maturity benefits, and death benefits based on selected policy details.

Purpose of the Calculator

The calculator could be used to:

• Estimate the premium required for a chosen level of insurance coverage.
• Project potential maturity values using assumed fund growth rates.
• Calculate expected death benefits under different scenarios.
• Compare policy benefits with other insurance or investment products.

Factors Used in the Calculation

The calculator generally considered:

• Age at policy entry.
• Policy term.
• Premium amount and payment frequency.
• Selected investment fund options.
• Assumed NAV growth rates such as 4% or 8%.
• Applicable charges including premium allocation charges, fund management charges, and policy administration charges.
• Additional rider premiums, where applicable.

Limitations of the Calculator

• Calculations were based on assumed investment returns and were not guaranteed.
• Actual policy values depended on market performance and NAV fluctuations.
• Charges and policy conditions could vary according to LIC’s prevailing rules and regulations.

Using the calculator provided a useful estimate of potential benefits and assisted policyholders in evaluating the suitability of the plan before investing.

Tax Benefits

Premiums paid under LIC Endowment Plus Plan 802 were eligible for tax deductions under Section 80C of the Income Tax Act, subject to applicable limits and conditions. Death benefits and maturity proceeds generally qualified for tax exemption under Section 10(10D), subject to prevailing tax provisions.

Purchase and Documentation

Since LIC Endowment Plus Plan 802 was withdrawn from sale on 1 January 2014, new policies are no longer available. Existing policyholders can continue servicing their policies through LIC’s established channels.

The commonly required documents included:

• Proof of age and identity.
• Address proof.
• Completed proposal form.
• Nominee information.
• Medical reports, wherever applicable.

For claim settlement, additional documents such as the original policy document, death certificate, and bank account details may be required.

Comparison with LIC New Endowment Plus Plan 935

Following the withdrawal of Plan 802, LIC introduced New Endowment Plus Plan 935 with several updated features, including:

• Market-linked returns combined with life insurance protection.
• Partial withdrawal facility after completion of the lock-in period.
• Settlement options for receiving maturity proceeds in instalments.
• Greater flexibility in premium payment choices.
• Availability of additional rider benefits for accident and critical illness protection.

Both plans followed a similar unit-linked structure, although Plan 935 incorporated revised charges and enhanced flexibility.

Important Points to Consider

• Investment returns depended on market performance and were not guaranteed.
• Fund selection played an important role in determining overall returns.
• Market volatility could affect fund values and maturity benefits.
• Rider benefits increased coverage but also added to policy costs.
• Loans and partial withdrawals offered liquidity but could impact future policy benefits.
• Policyholders should evaluate their financial goals and risk tolerance before choosing a market-linked insurance plan.

Frequently Asked Questions

What is LIC Endowment Plus Plan 802?

LIC Endowment Plus Plan 802 was a Unit Linked Insurance Plan (ULIP) that combined life insurance protection with market-linked investment opportunities. The plan was introduced by LIC in 2010 and later withdrawn from sale in 2014.

When was LIC Endowment Plus Plan 802 launched and discontinued?

The plan was launched on 20 September 2010 and was withdrawn from new sales on 1 January 2014.

What was the minimum entry age under this plan?

The minimum age required to enter the policy was 7 years, subject to the plan’s eligibility conditions.

What policy term options were available?

Policyholders could choose a policy term ranging from 10 years to 20 years based on their financial objectives and preferences.

How were premiums invested?

The premiums were allocated to the selected investment funds, such as Bond Fund, Secured Fund, Balanced Fund, or Growth Fund. The fund value depended on the performance of the chosen investment option.

What was payable on maturity?

On completion of the policy term, the accumulated fund value based on the units held and prevailing NAV was payable as the maturity benefit.

Conclusion

LIC Endowment Plus Plan 802 was a market-linked insurance plan that offered the dual advantage of life cover and investment growth through professionally managed funds. With multiple fund options and flexible investment choices, it catered to policyholders seeking long-term wealth creation along with insurance protection.

Although the plan was withdrawn from sale in 2014, it continues to be relevant for existing policyholders. The LIC Endowment Plus Plan 802 Calculator serves as a useful tool for estimating fund values, maturity proceeds, and policy benefits, helping policyholders better understand and monitor their investments.

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