LIC Endowment Plan in the UAE – A Comprehensive Overview

LIC India is a reputed name in the life insurance industry, with the company also being India’s largest life insurance provider. Since 1989, it has made its presence in the Middle East for insurance products via LIC International, with the countries being Oman, Bahrain, Kuwait, and the UAE.

With respect to LIC endowment plans in the UAE, you can certainly look out for the LIC New Endowment plan. It is a participating non-linked plan which offers comprehensive benefits of life insurance, investment, and liquidity. Once the policy matures, you would be able to receive the sum assured along with the bonus accrued.

With that said, in case of the demise of the policyholder before maturity, the nominee will get the sum assured along with the bonus. It is, thus, different from a traditional life insurance policy that pays only upon the death of the policyholder.

Let’s go through all the important features and aspects of the LIC endowment policy in the UAE and how it can be useful for you and your financial planning over the long-term horizon.

LIC Endowment Plan Key Features

Discussed below are some of the key attributes of the LIC endowment plan –

• Sum assured: You can select the sum assured for your plan from a wide range for the same. With a minimum amount of $4000 that can be increased by multiples of $100 afterwards, this plan is certainly among the LIC best endowment plans in terms of the offered coverage. A maximum limit does not exist universally and is subject to financial underwriting limits mentioned in the company policy.
• Age at the time of buying the policy: If you are over the age of 8 years and under 65 years, you can easily opt for the LIC endowment plan.
• Age at maturity: To avail of the maturity benefits, you must be between 18-75 years of age at the time of policy maturity.
• Term: The term for this LIC endowment policy can be anywhere between 10 and 35 years as per your preferences and user profile.
• Premium payment: The flexibility in the payment of premiums is another defining feature of this LIC plan, as you may choose to make premium payments either for the full term or limited term (5 or 7 years). Depending on your budget, you can make premium payments yearly, half-yearly, quarterly, or monthly.
• Grace period: The grace period allowed for quarterly, half-yearly, or annual premium payments is 1 month. For monthly premiums, on other hand, the maximum permitted grace period is of 15 days.
• Paid-up value: If, after paying the premiums for 2 years, you are unable to pay them further, the policy will be changed into a paid-up policy. The sum assured of the policy will be reduced accordingly and the payout will be made upon maturity or after the death of the policyholder.
• Surrender options: As a policyholder, you can choose to surrender your LIC endowment plan after 2 years of paying the premiums regularly.
• Loan against policy: If you have paid the policy premiums regularly for 2 years after buying the policy, the policy will acquire a surrender value. Post this, you can easily apply for a loan against the policy.

Benefits of the LIC Endowment Plan

After exploring the major aspects of the mentioned LIC endowment plans, let’s now discuss the primary advantages of purchasing the LIC endowment assurance policy –

• Lumpsum payment on maturity date: Unlike traditional life insurance policies, the LIC endowment plan is not limited to providing only death benefits. If the policyholder outlives the maturity date of the policy, this plan offers an assured sum to them as well. With this feature, this LIC plan can be a suitable option for covering your insurance and safe-investment requirements in one place.
• Accident rider: Another benefit of this plan is that policyholders can choose an accident rider for the entire policy term or up to 70 years of age (whichever is earlier). In case of their death due to an accident during the policy term, their beneficiaries would be eligible for an additional accident benefit sum along with the sum assured. Keep in mind that the sum assured should be not more than $10,000 to avail the said rider – this includes the total sum assured by all LIC policies that the policyholder is enrolled for.
• A disciplined approach to investment: As the LIC endowment plan helps you financially secure your family by requiring regular premiums, you end up saving money for the future with the premiums acting as regular investments. As a result, you can withdraw a lump sum amount at the time of maturity and be financially covered if you are able to make the premium payments on time and more.

To Conclude

LIC endowment assurance policies are ideal for those who wish for a comprehensive policy that combines the benefits of insurance and investment. With benefits like high sum assured, affordable and flexible premiums, loan facility against the policy, and more, this LIC plan certainly makes for one of the best investment places in UAE.