LIC Whole Life Policy – Limited Payment Plan 05 Calculator
Plan Type: Whole Life Assurance With Profits
Death Benefit: Sum Assured + Vested Bonuses
Overview of Whole Life Policy – Limited Payment Plan 05
LIC’s Whole Life Policy – Limited Payment Plan 05 is a traditional whole life insurance policy that provides lifelong financial protection while allowing policyholders to complete premium payments within a fixed and shorter duration. The plan combines life insurance coverage with long-term wealth accumulation through bonus participation.
What is LIC Whole Life Policy – Limited Payment Plan 05?
Whole Life Policy – Limited Payment Plan 05 was introduced by LIC for individuals who wanted permanent life insurance protection without the obligation of paying premiums throughout their lifetime. Under this plan, premiums are paid only for a selected limited period, while life cover continues up to the age of 100 years.
The policy offers financial security to the family in the event of the policyholder’s death and also provides maturity benefits if the life assured survives until the policy maturity age.
LIC Whole Life Policy – Limited Payment Plan 05
This plan successfully combines lifelong insurance protection, bonus accumulation, and limited premium commitments, making it suitable for long-term financial planning.
Launch and Withdrawal Information
- Launch Date: 1 November 2013.
- Withdrawal Date: New sales were discontinued from 15 August 2025 as part of LIC’s product restructuring initiative.
Although fresh policies are no longer available, existing policyholders continue to enjoy all benefits according to the original policy conditions.
Major Features of Whole Life Policy – Limited Payment Plan 05
- Limited Premium Commitment: Premiums are payable only for a selected period such as 5, 7, or 10 years.
- Lifelong Insurance Protection: Risk cover remains active up to the age of 100 years.
- Death Benefit: Nominees receive the Sum Assured along with applicable bonus benefits.
- Maturity Benefit: Sum Assured together with accrued bonuses becomes payable on survival up to age 100.
- Participation in Profits: Eligible for Simple Reversionary Bonuses and Terminal Bonuses declared by LIC.
- Loan Facility: Loans can be availed after the policy acquires surrender value.
- Tax Advantages: Eligible for tax benefits under applicable provisions of the Income Tax Act.
Eligibility Criteria and Premium Payment Conditions
| Particulars | Details |
|---|---|
| Minimum Entry Age | 8 Years |
| Maximum Entry Age | 50 Years |
| Maturity Age | 100 Years |
| Premium Payment Term | 5 Years, 7 Years, or 10 Years |
| Minimum Sum Assured | ₹1,00,000 |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly |
The policy is ideal for individuals seeking lifelong coverage while completing premium payments within a shorter period.
Benefits of LIC Whole Life Policy – Limited Payment Plan 05
One of the biggest advantages of this policy is its limited premium payment structure. The policyholder completes premium payments within a fixed period while continuing to enjoy life insurance protection for several decades thereafter.
Eligibility Criteria for LIC Whole Life Policy – Limited Payment Plan 05 Calculator
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age | 12 Years | 60 Years |
| Sum Assured | ₹50,000 | No Upper Limit |
| Premium Payment Term | 5 Years | 40 Years |
| Policy Term | 5 Years | 55 Years (Premium Ceasing Age 70 Years) |
| Maturity Age | Not Applicable | Whole Life Coverage (Up to 80 Years in Certain References) |
Detailed Policy Benefits
Death Benefit
In the event of the policyholder’s death during the policy term, LIC pays the applicable death benefit to the nominee.
The death claim generally includes:
- Basic Sum Assured on Death.
- Accrued Simple Reversionary Bonuses.
- Any applicable Final Additional or Terminal Bonus.
This financial support helps provide stability and protection to the family during difficult times.
Maturity Benefit
If the life assured survives until the policy maturity age, the policy pays the accumulated maturity proceeds.
The maturity benefit typically consists of:
- Basic Sum Assured.
- Vested Reversionary Bonuses.
- Applicable Terminal Bonus, if declared.
This payout can serve as a substantial financial corpus for future requirements.
Bonus Benefits
As a participating insurance plan, the policy qualifies for bonus declarations based on LIC’s performance.
- Simple Reversionary Bonuses may be declared annually.
- Bonuses continue to accumulate throughout the policy duration.
- Final Additional Bonus or Terminal Bonus may be payable at claim settlement.
These additions significantly enhance the overall policy value over time.
Loan Facility
After the policy acquires surrender value, policyholders may obtain a loan against the policy.
This feature provides access to funds during emergencies while allowing the policy to remain active.
Tax Benefits
The policy offers tax advantages subject to prevailing tax regulations.
- Premiums paid may qualify for deduction under Section 80C.
- Maturity and death claim proceeds may be eligible for exemption under Section 10(10D).
How the LIC Whole Life Policy – Limited Payment Plan 05 Calculator Works
The LIC Whole Life Policy – Limited Payment Plan 05 Calculator helps policyholders estimate premiums and future benefits before purchasing the policy.
Information Required
- Age of the Life Assured.
- Desired Sum Assured.
- Premium Payment Frequency.
- Selected Premium Paying Term.
Calculator Outputs
Based on the entered details, the calculator can estimate:
- Annual or periodic premium payable.
- Projected maturity value.
- Expected bonus accumulation.
- Estimated death benefit.
- Overall policy benefits.
This allows prospective buyers to understand the financial commitment and expected returns before investing.
Why Consider LIC Whole Life Policy – Limited Payment Plan 05?
- Lifelong Insurance Protection: Coverage continues for life while premiums are paid only for a limited period.
- Family Financial Security: Death benefits help protect dependents from financial uncertainty.
- Bonus-Based Wealth Creation: Annual bonuses increase the overall policy value.
- Limited Premium Commitment: Premium obligations end much earlier than the insurance coverage.
- Tax Savings: Eligible tax benefits improve overall financial efficiency.
- Liquidity Support: Loan facility offers financial flexibility without terminating the policy.
Who Should Consider LIC Whole Life Policy – Limited Payment Plan 05?
Before its withdrawal from sale, this policy was available through LIC branches and authorized agents. It was particularly suitable for individuals seeking lifelong insurance protection while avoiding the burden of paying premiums throughout their lifetime.
This plan was generally ideal for people who:
- Wanted lifelong life insurance coverage.
- Preferred completing premium payments within a limited period.
- Looked for tax-saving opportunities through insurance.
- Wanted to create long-term financial security for their family.
- Preferred a traditional insurance plan with bonus benefits.
- Were comfortable making higher premium payments over a shorter duration for long-term protection.
Frequently Asked Questions (FAQs)
What is LIC Whole Life Policy – Limited Payment Plan 05?
LIC Whole Life Policy – Limited Payment Plan 05 is a participating whole life insurance plan that provides lifelong coverage while allowing premiums to be paid only for a limited period.
When was LIC Whole Life Policy – Limited Payment Plan 05 introduced?
The plan was introduced by LIC on 1 November 2013 as part of its traditional life insurance portfolio.
Is this plan available for new purchases today?
No. New sales of the plan have been discontinued. However, policies already issued continue to remain active and enjoy all benefits according to the original policy conditions.
Who was eligible to purchase this policy?
Eligible individuals generally fell within the prescribed entry-age limits specified by LIC, with life cover continuing up to the policy maturity age.
How long are premiums payable under this plan?
The policy offers limited premium payment options, allowing policyholders to complete premium payments within the selected premium-paying term while continuing to enjoy lifelong insurance protection.
Does the policy participate in LIC bonuses?
Yes. Being a participating plan, it qualifies for Simple Reversionary Bonuses and may also be eligible for Final Additional Bonus or Terminal Bonus, depending on LIC’s declarations.
Is a loan facility available under the policy?
Yes. Once the policy acquires surrender value, loans can generally be availed against the policy subject to LIC’s prevailing rules and conditions.
Conclusion
LIC Whole Life Policy – Limited Payment Plan 05 was designed to provide a powerful combination of lifelong financial protection, limited premium commitments, bonus accumulation, and long-term wealth creation. By allowing policyholders to complete premium payments within a shorter period while retaining coverage for life, the plan offered both convenience and financial security.
Although the plan is no longer open for new business, it continues to hold significance for existing policyholders. Features such as lifetime risk cover, maturity benefits, participation in bonuses, loan availability, and tax advantages make it one of LIC’s notable traditional whole life insurance solutions.
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