LIC New Endowment Plan

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LIC New Endowment Plan

LIC’s New Endowment Plan is a participating Endowment Plan. It is the simple vanilla endowment plan of lic with death and maturity benefit.

Key Features of LIC New Endowment Plan

  • This is a Participating Traditional Endowment Plan
  • Premium needs to be paid for the entire policy tenure
  • On survival till the end of the policy tenure, the maturity benefit is paid to the policyholder and the policy terminates
  • If the life insured dies within the policy tenure, the death benefit is paid to the nominee and the policy terminates
  • There is additional coverage which can be opted for additional premium

Benefits of New Endowment Plan

  • Bonus: This policy participates in the bonuses of the company and the policy accrues Simple Reversionary Bonuses and Final Additional Bonus
  • Maturity Benefit: On survival till the end of the policy tenure, the Basic Sum Assured + accrued bonuses are paid to the policyholder as Maturity Benefit and the policy terminates
  • Death Benefit: if the Life Insured dies within the policy tenure, then the Sum Assured on Death + accrued Bonuses would be payable to the nominee
  • Sum Assured on Death is defined as higher of:
    • Basic Sum Assured as chosen at the beginning of the policy
    • 10 times of annualized premium
    • Subject to a minimum of 105% of the total premiums paid as on date of death
    • Additional Rider available: LIC’s Accidental Death and Disability Benefit Rider
    • There is mode discount for yearly and half-yearly premium payments and for higher sum assured chosen
    • Income tax benefit on the premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act

Product Specification:




Entry Age (Last Birthday)

8 years

55 years

Maturity Age (Last Birthday)


75 years

Policy Term (PT) in years

12 years

35 years

Premium Paying Term (PPT) in years

Equal to Policy term

Premium Paying Frequency

Annual, half-yearly, quarterly and monthly

Sum Assured

Rs 1, 00,000

No Limit

Details about Premium

The annual premium is mentioned in Rupees for a Policy Tenure of 20 years. Basic Premium is mentioned below (Tax not included)


Rs 1 Lac Sum Assured

Rs 2 Lacs Sum Assured

Rs 5 Lacs Sum Assured

30 Years




40 Years




50 Years




Policy Details

Grace Period: 30 days’ grace period is allowed for premium payment. If policyholder fails to make payment within the grace period, the policy lapses. However, there is a period of 2 years from the due date of the first unpaid premium for the policy to be revived

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Policy Termination or Surrender Benefit: The policy acquires a surrender value after completion of 3 policy years and can also avail Loan


In case of suicide committed within 12 months of policy inception only 80% of premiums paid are returned to the nominee. In case of suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person.