LIC Endowment Plus Plan 802

LIC Endowment Plus Plan 802 is a unit-linked insurance product that combines investment and risk cover. Unlike traditional endowment policies with fixed returns, this plan’s returns are linked to the performance of units in selected funds, offering the potential for higher returns with market growth. At the same time, it provides life insurance cover to protect the policyholder’s family in case of an untimely demise.

The key appeal of this plan was the flexibility it offered—policyholders could choose among different types of funds based on their risk appetite and investment preferences. It aimed to balance the safety of bonds with growth-oriented units.

Launch and Withdrawal Dates

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

Since its withdrawal, LIC introduced newer plans like LIC New Endowment Plus (Plan 935), but many still seek information and tools related to Plan 802 for reference or legacy policy management.​

Eligibility and Policy Term

• Entry Age: 7 years to 60 years (Per policyholder’s eligibility)
• Policy Term: 10 years to 20 years, which can be chosen according to your financial goals
• Premium Payment Term: Equal to the policy term
• Modes of Premium Payment: Yearly, half-yearly, quarterly, monthly (via ECS), or single premium

Investment Options and Fund Choices

The plan offered the following fund options for investing the premiums:

• Bond Fund: For conservative investors, primarily invested in government and corporate bonds
• Secured Fund: Moderate-risk investment mainly in fixed-income securities with some equity
• Balanced Fund: A mixed investment fund consisting of equity and debt instruments aimed at balanced growth
• Growth Fund: High-risk equity-oriented fund for those seeking maximum investment appreciation

Policyholders could switch between these funds up to 4 times a year free of cost, enabling dynamic management of investment as per market conditions.​

Premiums and Charges

• Minimum Annual Premium: Rs. 20,000 for regular modes (other than monthly ECS)
• Minimum Monthly ECS Premium: Rs. 1,750
• Minimum Single Premium: Rs. 30,000
• Premium Allocation Charges: 7.5% in the first year, 5% from the 2nd to the 5th year, and 3% thereafter
• Fund Management Charges (FMC): Around 0.7% per annum (may vary)

The premium amount determines the number of units allotted in the chosen funds based on Net Asset Value (NAV) on the premium payment date. Thereafter, the policyholder’s fund value changes according to the market performance.​

Benefits of LIC Endowment Plus Plan 802

Maturity Benefit

On survival till the end of the policy term, the fund value accumulated in the chosen investment fund(s) is paid to the policyholder as the maturity amount. The maturity benefit depends entirely on the performance of the chosen funds and the number of units held, making this a market-linked return product.

Death Benefit

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

• Sum Assured on Death (adjusted for partial withdrawals if any in the last 2 years), or
• Fund value of the policy units at the time of death

This ensures financial protection to the family against uncertainties.

Partial Withdrawals

Partial withdrawals from the unit fund are permitted after the completion of 5 policy years. This provides flexibility to meet financial needs without surrendering the entire policy. Withdrawals can be made in fixed amounts or in fixed units.

Loan Facility

Loans can be taken against the policy after 3 years from commencement and if premiums are paid up to date. The loan amount can be up to 30% of the fund value.

Fund Switching

Policyholders can switch between the four available funds up to 4 times per year at no additional charges. This helps manage risk and returns actively.

Riders

Optional riders were available for additional benefits on payment of extra premium:

• Critical Illness Rider
• Double Accident Benefit Rider

These riders provide extra financial cushion for unforeseen events.​

How LIC Endowment Plus Plan 802 Works

When you pay your premium, LIC invests it in the selected funds by allotting units according to the prevailing NAV. The NAV fluctuates daily based on market conditions. The total value of your policy is calculated as the number of units multiplied by the NAV.

Over time, the fund may grow, providing mature returns, or it may also reduce in value due to market risks. Since it is a unit-linked plan, the investment risk is borne by the policyholder.

Throughout the policy term, you can monitor your fund value and make changes such as switching funds, partial withdrawal, or loan against policy. On maturity or in case of death, the unit fund value or sum assured (whichever applicable) benefits are paid.

LIC Endowment Plus Plan 802 Calculator

The LIC Endowment Plus Plan 802 Calculator is an essential tool for prospective or existing policyholders to estimate premiums, fund values, maturity benefits, and death benefits based on input parameters such as age, policy term, premium amount, and fund choice.

Purpose of the Calculator

• To estimate the premium amount required for a desired sum assured or maturity benefit
• To compute maturity benefits based on assumed growth rates of NAV
• To project death benefits payable in case of policyholder’s demise
• To help compare with other LIC plans or investment products

Factors Considered in Calculator

• Age at entry and policy term
• Mode and amount of premium payment
• Type of fund(s) selected for investment
• Fund NAV projections (simulated growth rates like 4% or 8%)
• Charges including premium allocation, fund management, and policy administration
• Additional rider premiums if selected

Limitations

• Returns are market-linked and not guaranteed; calculator assumes hypothetical growth rates.
• Actual returns depend on NAV fluctuations and fund performance.
• Charges and terms as per latest LIC policies may vary.

Using such a calculator helps in making informed financial decisions before committing to the policy.​

Tax Benefits

Premiums paid towards LIC Endowment Plus Plan 802 were eligible for tax deductions under Section 80C of the Income Tax Act, 1961, subject to prevailing limits. The maturity benefits and death claims generally were exempt from tax under Section 10(10D), subject to conditions.

How to Buy and Documentation

As the plan was withdrawn on January 1, 2014, it is no longer available for fresh sale. Existing policyholders can continue their policies and manage them through LIC’s servicing channels.

Documents typically required for LIC plans included:

• Proof of age and identity
• Completed application form
• Address proof
• Nominee details
• Medical reports (if applicable)

In case of claims, additional documents such as a death certificate, policy papers, and bank mandate form are required.​

Comparison with New Endowment Plus Plan 935

Since the withdrawal of Plan 802, LIC introduced the New Endowment Plus Plan 935 with enhanced features like

• Similar unit-linked, market-linked returns with life cover
• Facility for partial withdrawal after 5 years
• Settlement option for receiving maturity proceeds in installments
• Additional flexible premium payment options
• Rider benefits for critical illness and accidents

Both plans share the concept of fund-based growth and insurance cover, but Plan 935 features updated charges and broader flexibility.​

Important Considerations

• The policyholder bears investment risk, as the maturity value depends on fund NAV.
• Market fluctuations can lead to lower returns than traditional endowment plans.
• Fund selection and switching are key to optimizing plan benefits.
• Riders enhance protection but increase premium costs.
• Partial withdrawals and loans provide liquidity but may affect maturity benefits.
• Always review your goals and risk appetite before choosing such a plan.

Frequently Asked Questions

Conclusion

LIC Endowment Plus Plan 802 was a pioneering unit-linked insurance plan from LIC that offered a blend of market-based investment gains and life insurance cover. Though it was withdrawn in 2014, it set the foundation for newer ULIP plans with flexibility in fund choice and premium payment.

The LIC Endowment Plus Plan 802 Calculator remains useful as a reference tool for understanding how premiums convert into fund values and eventual maturity or death benefits. For those seeking new policies, considering LIC’s New Endowment Plus Plan or other ULIPs with similar benefits is recommended.