LIC New Endowment Plan

LIC New Endowment Policy is an endowment plan wherein the policyholder can avail of the benefits of both investment and protection under the single plan. The plan offers financial protection to the family in case of the policyholder's demise. Other than this, the plan will offer a maturity benefit if he/she survives till the end of the policy term.

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LIC New Endowment Plan- An Overview

LIC New Endowment Plan offered by LIC of India is a participating endowment plan that offers the dual benefit of protection cum saving plan. LIC New endowment plan comes with both death and maturity benefit.

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 a maturity benefit at the time of policy maturity. Moreover, by providing a loan facility, LIC New Endowment Plan also takes care of the liquidity needs.

Unlike pure-term insurance plans, the LIC endowment plan is beneficial for those who want to have disciplined saving long with life coverage.

Key Features of LIC New Endowment Plan

  • This is a Participating Traditional Endowment Plan

  • Under this plan the policyholder requires to pay a premium for the entire tenure of the policy.

  • The LIC New Endowment plan also offers surrender benefits and loan facilities to fulfill liquidity needs.

  • 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

  • LIC plan offers additional coverage as optional accidental death and disability benefit rider which can be opted for additional premium along with the basic coverage offered by the policy.

Benefits of the New Endowment Plan

  1. Participation in Profit:

    LIC New Endowment Plan participates in the profits of the company, and the policy accumulates Simple Reversionary Bonuses and a Final Additional Bonus, which are 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.

  2. Maturity Benefit:

    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.

  3. Death Benefit:

    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. 

    Sum Assured on Death is defined as higher of:

    • Basic Sum Assured as chosen at the beginning of the policy

    • 7 times of annualized premium

    • Subject to a minimum of 105% of the total premiums paid as on date of death

  4. Rider Benefit for Enhanced Protection

    LIC New Endowment Plan offers 5 optional riders such as LIC’s Accidental Death and Disability Benefit Rider, LIC’s Accident Benefit Rider, and LIC’s New Term Assurance Rider,. LIC’s New Critical Illness Benefit Rider and LIC’s Premium Waiver Benefit Rider. These riders financially protect the policyholder and their family from life’s uncertainty such as death, disability and diseases

Product Specification:

Parameters 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

Details About Premium

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.

Policy Details

  1. Grace Period

    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.

  2. 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.

  3. Policy Termination or Surrender Benefit

    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.

  4. Exclusions

    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

Documents Required

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


  • Q: Can the policy be surrendered before maturity?

    Ans: Yes, the policy can be surrendered before maturity. However, the surrender value will depend on the number of premiums paid and the policy term completed.
  • Q: Is there any tax benefit available under LIC's New Endowment Plan?

    Ans: Yes, the premiums paid towards LIC's New Endowment Plan are eligible for tax benefits under, Section 80C of the Income Tax Act, 1961. Also, the maturity amount or the death benefit is tax-free under Section 10(10D) of the Income Tax Act, subject to certain conditions.
  • Q: Can I change the nomination under LIC's New Endowment Plan?

    Ans: Yes, you can change the nomination during the policy term by submitting a written request to LIC. The change will be effective upon acceptance by LIC.
  • Q: Can I revive a lapsed LIC New Endowment Plan?

    Ans: Yes, you can revive a lapsed LIC New Endowment Plan within a two consecutive years from the date of the first unpaid premium. Revival can be done by paying the outstanding premiums along with any applicable interest or penalties.
  • Q: Can I take a loan against the LIC New Endowment Plan?

    Ans: Yes, once the policy acquires a surrender value, you can take a loan against LIC's New Endowment Plan. The loan amount can be up to 90% of the surrender value, subject to certain terms and conditions.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:-


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