The Life Insurance Corporation of India is known as the pioneer of insurance in India. With its wide customer base, the LIC is one of the most trusted brands in the insurance sector. The Life Insurance Corporation of India offers a wide range of insurance products available at the most affordable premium rates. With its expert customer support service, the LIC of India helps you to get the best insurance policy as per your requirements and suitability.
Buy LIC policy online
hassle free
Guaranteed maturity with life
cover
for securing family's future
Tax saving under Sec 80C &
10(10D)
Sovereign guarantee as per
Sec 37 of LIC
Act
One can choose from the array of plans like protection plan, child plan, retirement plan, ULIP plan, endowment plan, saving plan, group plan, retirement plan, etc.
Further in this article, we are particularly going to talk about LIC New Endowment Plan but, before that let’s give some insight on various endowment policies offered by the Life Insurance Corporation of India(LIC).
Endowment plans offered by LIC are: -
This plan is a single premium payment plan that provides no limit on the maximum sum assured amount. Moreover, the policy also offers guaranteed surrender value along with the death benefit and maturity benefit.
This plan is a saving cum protection plan that provides you an opportunity to save an ample amount so that you can fulfill your future financial goals. Moreover, it also provides life protection to the family of the insured.
This plan does not offer any limit on the maximum sum assured amount. At the time of maturity, the plan offers a revisionary bonus and a final addition bonus to the policyholder. Moreover, the policy also provides concession on the premium paid.
This is a participating endowment plan that is specifically designed to fulfill the requirements of the children. Under this plan the beneficiary i.e. (the child) receives the total sum assured amount in case of demise of their parent. Thus, the plan ensures proper financial support to the child so that he/she can accomplish the major milestones of life.
This plan offers the minimum sum assured amount of Rs3 lakh whereas there is no limit on the maximum sum assured amount. The policy can be availed in 3 tenures i.e. 12 years, 16 years, and 21 years.
So, apart from the LIC New Endowment plan, this was a brief description of the LIC Endowment Plans. In addition to this further, we will discuss elaborately the features and benefits offered by LIC New Endowment Plan.
The endowment plan offered by LIC is a participating endowment plan that offers the dual benefit of protection cum saving plan. As a simple vanilla policy LIC endowment plan comes with both death and maturity benefit. Unlike pure term insurance plans LIC endowment plan is beneficial for those who want to have a disciplined saving long with life coverage.
The combination of saving cum protection provides a financial cushion to the family of the deceased insurance holder during the tenure of the policy. Moreover, if the insurance buyer survives the entire tenure of the policy then they receive the lump-sum amount as maturity benefit at the time of policy maturity. Moreover, by providing a loan facility, LIC Endowment Plan also takes care of the liquidity needs.
LIC Endowment Plan participates in the profits of the company and the policy accumulates Simple Reversionary Bonuses and Final Additional Bonus which is declared based on the experience of the company. A simple reversionary bonus is offered to the insured in case of the death benefit or maturity benefit provided the policy has completed the certain minimum years.    Â
If the policyholder survives the entire tenure of the policy, then at the time of maturity of policy he/she will receive the basic sum assured amount along with accrued bonuses as maturity benefit and the tenure of the policy will lapse.
In case of demise of the insured person during the tenure of the policy, the beneficiary of the policy receives death benefit as the total sum assured on death along with the simple reversionary bonus or accrued bonus and the tenure of the policy lapses.Â
Sum Assured on Death is defined as higher of:
LIC Endowment Plan offers additional benefits as a rider under which the policy provides add-on benefit along with the basic coverage to the beneficiary of the policy in case of accidental demise of the insured person. Under this rider benefit, an extra sum assured amount is paid to the beneficiary of the policy along with the basic sum assured amount.
 |
Minimum |
Maximum |
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 the Policy term  |
|
Premium Paying Frequency |
Annual, half-yearly, quarterly and monthly  |
|
Sum Assured |
Rs 1, 00,000 |
No Limit |
Here is a sample illustration of annual premiums for the Basic Sum Assured of Rs. 1,00,000 /- (Tax not included)
Age / Policy Term |
Amount |
||
15 |
25 |
35 |
|
20 |
6,978/- |
3,930/- |
2,754/- |
30 |
7,007/- |
3,994/- |
2,881/- |
40 |
7,139/- |
4,239/- |
3,249/- |
Mode |
Rebate |
Yearly mode |
2% of Tabular Premium |
Half-yearly mode |
1% of Tabular premium |
Quarterly, Monthly mode & Salary Deduction |
NIL |
High Sum Assured Rebate: Basic Sum Assured (B.S.A) |
Rebate |
1, 00,000 to 1, 95,000 |
Nil |
2, 00,000 to 4, 95,000 |
2%o B.S.A. |
5, 00,000 and 9, 95,000 |
3%o B.S.A. |
In case, the insurance holder fails to pay the premium on time then a grace period of 30 days is offered under the policy under which the insured can pay the due premium within the 30 days. If the policyholder fails to make payment within the grace period, then 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.
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.
The LIC New Endowment Plan also comes with a surrender value under which a particular percentage of the premium amount is paid back to the insured in case the policyholder decides to surrender the policy after the 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 than 80% of premiums paid or acquired Surrender Value is paid
The policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. A medical examination may be required in some cases, based on the sum assured and the age of the person
By reading the above-mentioned features and benefits offered by the plan it is clear that the plan is best suited for those individuals who want to have a disciplined saving option along with the advantage of life cover. With the help of the LIC New Endowment plan, you can set your long-term financial goals and start saving for them in a more planned manner.
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