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.Read more
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.
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.
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.
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.
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
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
|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|
|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
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*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:- http://bit.ly/3J20bXZ
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