Introduction
LIC’s New Endowment Plan is a participating non-linked plan which offers an attractive combination of protection and saving features. This combination provides financial support for the family of the deceased policyholder any time before maturity and good lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility.
In this plan, premium needs to be paid for the entire policy tenure. The Sum Assured along with vested Simple Reversionary Bonus + Final Addition Bonus would be paid to the Life Insured on survival till the end of the Policy Tenure as Maturity Benefit.
Table No.
814
Plan Type
Participating Non-Linked Plan
Plan Basis
Individual
Eligiblity Criteria
Entry Age
Minimum :
8 Years
Maximum :
55 Years
Maturity Age
Minimum
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Maximum
75 Years
Basic Sum Assured
Maximum
100000 and above
Minimum
No Limit
In Multiples of 5000
Policy Term
12 To 35 Years
Policy Paying Term
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Premium Payment Frequency
Yearly, Half Yearly, Quarterly, Monthly (ECS Only)
Coverage
Death Benefit
- Death Benefit
- Maturity Benefit
- Participation In Profit
- Sum Assured on Death
- Simple Reversionary Bonus
- Final (Additional) Bonus (if any)
Key Features
- A sound combination of Life insurance and investment.
- Low premium in comparison other plan in this category.
- Eligible for bonus and Final Addition bonus declared by LIC.
- Comparatively Higher Bonus
- Double Accidental benefit with rider.
- Tax saving on premium paid.
- Tax Free maturity amount.
IC New Endowment Plan is a participating traditional plan.
The premium payment is to be paid for the entire tenure.
On survival at the end the policy tenure, the policy pays the benefits to the survivor.
In the case of the death of the insured person, the death benefits are paid to the nominee and the policy terminates.
The insured person seeks additional coverage, the plan can be extended with additional premium payment.
The plan also pays simple reversionary bonus on maturity or death whatever be the condition.
There is a massive sum assured rebate available in the plan.
The plan guarantees assured returns and bonus.
An insured person can also avail LIC’s Accidental Death and Disability Benefit Rider.
Policy Benefits
Death Benefit
In case of death of the Life Insured within the Policy Tenure, the Nominee would be paid the “Sum Assured on Death” along with vested Bonuses as Death Benefit and the policy would be terminated.
The Sum Assured on Death has been defined as higher of Basic Sum Assured or 10 times the Annualized Premium subject to a minimum of 105% of all Premiums paid.
Maturity Benefit
On survival till the end of the Policy Tenure, the policyholder will Sum Assured + accrued Reversionary Bonus + Final Addition Bonus (if any) as Maturity Benefit and the policy will be terminated.
Rebate
There is a massive sum assured rebate available in the plan.
Profit Participation
Simple Reversionary Bonuses and Final Additional Bonus which is declared on the basis of the experience of the company. Simple reversionary bonus is offered to the insured in case of death benefit or maturity benefit provided the policy has completed the certain minimum years.
Ideal Plan
This plan is ideal for those who want to have a disciplined saving long with life coverage.
Tax Benefits
Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C. The Maturity Benefit is also tax free under section 10(10)D subject to fulfilment of all terms and conditions.
Loans
Loan will be available from policy subject to the payment of atleast 3 full years of the payment.
Riders
Accidental Death and Disability Rider
- There is mode discount for yearly and half-yearly premium payments and for higher sum assured chosen by the policyholder.
- The insured can save bundles on taxes as the premium paid and the maturity proceeds are eligible for tax deduction under section 80C and 10(10D) of Income Tax Act.
Disability Benefit Rider
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LIC’s New Term Assurance Rider
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Surrender Value
Once the policy accrues Cash Value, that is, when a minimum of three years of premiums has been paid, you can surrender it. The percentage, however, depends upon policy term, year of surrender and as specified in the table.
Guaranteed Surrender Value
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Special Surrender Value
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Stop Paying Premium
If the premiums are not paid within the Grace Period, the policy lapses and all benefits associated with the same will cease. However, if at least 3 years’ premiums have been paid, the policy acquires a Paid up Value for a Reduced Sum Assured but the policy will be liable for any future regular additions.
Basic Sum Assured *(Number of Premiums Paid / Total Number of Premiums Payable)
The policy can however be revived within 2 consecutive years from the date of first unpaid premium.
Rebates
Rebate on Premium Payment Mode
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Rebate on Sum Assured
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High Sum Assured and Mode Rebate
0% on 0 to 1,95,000 of Sum Assured
2% on 2,00,000 to 4,95,000 of Sum Assured
3% on 5,00,000 and above Sum Assured
Other Details
Revival Period
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Free Look Period
In case you are hesitant to purchase the policy and have confusion regarding the terms and conditions, the company provides you a provision of free look up period. Under this period you have the authority to cancel the policy within 15 days of the receipt of the policy paper. The only prerequisite is that no claim should be made.
Grace Period
In the case of delay in the premium payment, a grace period of 30 days is provided by the company. If the insured person fails to pay the premium during the grace period, the policy lapses. To revive the policy, the premium must be paid within two years of the last unpaid premium.
Nomination
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Assignment
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Exclusions
Suicide
In case an insured person commits suicide within 12 months of policy commencement, the nominee is entitled to 80% the premiums paid.
In the case of the suicide occurs within 12 months of policy revival 80% of the premium paid or acquired surrender value, whichever is higher, is paid.
Claim Process
Death Claim
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Maturity Claim
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Surrender Claim
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Examples
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FAQs
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