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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 brand in the insurance sector. The Life Insurance Corporation of India offers wide range of insurance products available in 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. 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.
Endowment plan offered by LIC are:-
So, apart from LIC New Endowment plan this was the brief description about the LIC Endowment Plan. In addition to this further we will discuss elaborately about 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 plan 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 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 he/she receives the lump-sum amount as maturity benefit at the time of policy maturity. Moreover, by providing loan facility, LIC Endowment Plan also takes care of the liquidity needs.
|
|
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 Policy term |
|
|
Premium Paying Frequency |
Annual, half-yearly, quarterly and monthly |
|
|
Sum Assured |
Rs 1, 00,000 |
No Limit |
The annual premium is mentioned in Rupees for a Policy Tenure of 20 years. Basic Premium is mentioned below (Tax not included)
|
Age |
Rs 1 Lac Sum Assured |
Rs 2 Lacs Sum Assured |
Rs 5 Lacs Sum Assured |
|
30 Years |
5062 |
9723 |
23809 |
|
40 Years |
5248 |
10096 |
24740 |
|
50 Years |
5753 |
11105 |
27263 |
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 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.
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 LIC New Endowment Plan also comes with a surrender values under which a particular percentage of premium amount is paid back to the insured in case he/she decides to surrender the policy after the completion of 3 policy years and can also avail Loan.
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 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
Conclusion
By reading the above mentioned features and benefits offered by the plan it is clear that the plan is best suited for those individual who wants to have a disciplined saving option along with the advantage of life cover. With the help of LIC New Endowment plan you can set your long term financial goals and start saving for it in a more planned manner.
