LIC Whole Life Policy - Limited Payment Plan 05 Calculator
Table No. 05 | UIN: 512N035V01
Plan Type: With Profits Limited Payment Whole Life Policy
Launch Date: Historical Plan (Pre-2013)
Withdrawal Date: 16th November 2013
Status: Discontinued (No longer available for new policies)
Calculation Results
The Whole Life Policy – Limited Payment Plan 05 is a popular life insurance plan offered by LIC India, designed to give lifelong coverage with a limited premium payment term. This plan ensures financial security for your family while requiring you to pay premiums only for a specific period. It combines the benefits of protection, savings, and a guaranteed payout at the end of the term.
Introduction to Whole Life Policy – Limited Payment Plan 05
The Whole Life Policy – Limited Payment Plan 05 was launched by LIC India in 2013 to cater to individuals seeking life insurance for their entire lifetime but prefer to pay premiums for a limited number of years. This plan provides financial protection to the policyholder’s family in case of untimely death and also offers maturity benefits if the policyholder survives the term.
This plan has become popular due to its dual benefit of protection and savings, where the insured enjoys coverage for life, but premium payments are made only for a predetermined limited period. The policyholder thus gets a position of financial security without the burden of lifelong premium payments.
Launch and Withdrawal Details
- Launch Date: The Whole Life Policy – Limited Payment Plan 05 was launched on November 1, 2013, by LIC India [LIC Source].
- Withdraw Date: LIC India announced the withdrawal of new sales of this plan starting from August 15, 2025, as part of their plan rationalization to introduce new products in line with modern customer needs. However, existing policyholders will continue to enjoy the benefits as per policy terms [LIC Withdrawn Plans].
Despite withdrawal from new sales, the plan remains a good reference for understanding whole life insurance plans with a limited premium payment feature.
Key Features of Whole Life Policy – Limited Payment Plan 05
This plan offers several attractive features that make it suitable for customers looking for lifelong financial security.
- Limited Premium Payment Term: Choose to pay premiums for 5, 7, or 10 years while getting lifetime coverage.
- Lifelong Coverage: The insurance risk cover remains for the lifetime of the policyholder, protecting the family even in old age.
- Sum Assured Payout: On the death of the policyholder, the nominee receives the sum assured along with applicable bonuses.
- Maturity Benefit: If the policyholder survives till the maturity age of 100 years, the sum assured plus accrued bonuses are paid to the policyholder.
- Bonuses: The plan participates in LIC’s profits and offers terminal and reversionary bonuses, which increase the policy’s value over time.
- Loan Facility: Policyholders can avail of loans against the policy after it acquires a surrender value.
- Tax Benefits: Premiums paid and benefits received are eligible for tax exemption under the Income Tax Act, subject to prevailing norms.
These features provide a blend of insurance protection and long-term savings for the policyholder.
Eligibility and Premium Payment Terms
- Entry Age: Minimum age at entry is 8 years, and maximum age is 50 years.
- Policy Term: The policy matures when the policyholder reaches the age of 100 years.
- Premium Paying Term: This is limited to 5 years, which means all premiums must be paid in this period for lifelong coverage.
- Sum Assured: Minimum sum assured is Rs. 1,00,000; higher amounts depend on the applicant’s age and income.
- Mode of Payment: Premiums can be paid yearly, half-yearly, quarterly, or monthly based on convenience.
The limited payment structure makes this plan affordable as the premium burden is restricted to just five years.
Benefits Explained
Death Benefit
If the policyholder dies during the premium payment term or after it, the nominee receives:
- Sum Assured on death.
- Accrued bonuses till the date of death.
- The total amount acts as financial support for the family, ensuring their needs are met.
Maturity Benefit
If the policyholder survives till the maturity age (100 years), LIC pays the sum assured plus the accumulated bonuses. This amount serves as a significant corpus for retirement or other future needs.
Bonuses
The plan qualifies for reversionary bonuses annually based on LIC’s performance. These bonuses accumulate over the years and are paid at maturity or on death. Additionally, a terminal bonus may be declared at maturity or surrender time, adding to the policy’s overall value.
Loan Facility
Once the policy acquires surrender value, policyholders can take loans from LIC against the policy security. This feature helps in emergencies without surrendering the policy.
Tax Benefits
Premiums paid under this plan are eligible for tax deduction under Section 80C of the Income Tax Act, while the maturity proceeds are exempt under Section 10(10D), making it tax-efficient.
How the Limited Payment Plan 05 Calculator Works
To help customers understand their premiums, maturity value, and benefits, LIC provides an online calculator specific to the Whole Life Policy – Limited Payment Plan 05. This tool allows the user to input:
- Age of the policyholder.
- Sum assured desired.
- Premium payment mode.
- Premium paying term (for this plan, it is usually 5 years).
Using actuarial tables and LIC’s bonus rates, the calculator estimates:
- Annual/regular premium amount.
- Expected maturity amount, considering accrued bonuses.
- Death benefit payouts.
This calculator helps customers plan their finances effectively by giving a clear picture of the plan’s monetary aspects before purchasing.
Why Choose Whole Life Policy – Limited Payment Plan 05?
- Lifelong protection with fewer premiums: Pay premiums for just 5 years but remain insured for life.
- Financial security for family: Offers guaranteed sum assured along with bonuses.
- Savings with returns: Bonuses build up a corpus for old age.
- Affordability: Limited payment terms reduce the burden of long-term premium payments.
- Tax efficiency: Benefits on tax deductions and exemptions.
- Loan option: Access liquidity when needed without policy surrender.
How to Buy the Plan and Who Should Consider It?
LIC agents or LIC’s official website can facilitate the purchase of this plan until its sales withdrawal date. It’s best suited for individuals who:
- Want lifelong insurance coverage.
- Prefer limited premium payment duration for affordability.
- Desire tax savings.
- Seek financial security for their family with savings benefits.
- Are comfortable paying premiums upfront for future benefits.
Frequently Asked Questions
What is the Whole Life Policy – Limited Payment Plan 05?
It is a life insurance plan by LIC India that provides lifelong coverage while requiring premium payments for a limited period, typically 5 years.
When was this plan launched?
The plan was launched on November 1, 2013, to offer a combination of lifelong protection and limited premium payments.
Can new customers still buy this plan?
No, LIC India withdrew this plan from new sales starting August 15, 2025. Existing policyholders will continue to enjoy its benefits.
Who can buy this plan?
Individuals between 8 and 50 years of age can purchase this plan, which matures when the policyholder turns 100 years old.
How long do I have to pay premiums?
Premiums are paid for a limited term of 5 years only, after which the coverage continues for life without further payments.
Conclusion
The Whole Life Policy—Limited Payment Plan 05 by LIC India is a valuable option for those seeking comprehensive life insurance coverage with the convenience of limited premium payments. Launched in 2013 and withdrawn from new sales in August 2025, it remains a notable product in LIC’s legacy of trustworthy insurance plans. With lifelong protection, maturity benefits, bonuses, and tax advantages, this plan offers both security and savings in a single package.