LIC’s New Endowment Plan is a participating non-linked plan which offers an attractive combination of protection and saving for the Policyholder for his financial goals as well as life protection. This combination provides financial support to the family of the policyholder in case of death any time before maturity and good lump sum amount at the time of maturity for the surviving policyholders. This plan comes with the loan facility that can solve the liquid needs of the Policyholder.
Benefit
Maturity benefit
On the survival of the policyholder a lump sum amount of Basic Sum Assured, along with vested simple reversionary bonuses and Final Additional bonus will be payable to the policyholder
Death benefit
On the death of the policyholder “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional bonus will be payable. The Sum Assured on Death is defined as higher of Basic Sum Assured or 10 times of annualized premium and the Sum Assured on Death cannot be less than 105% of all the premium paid.
Additional benefit
Participation in Profits:
This Policy is a profit participating policy and the policyholder is entitled to receive Simple Reversionary Bonus declared by the Corporation along with Final Bonus amount in the year when the policy results in the claim either by maturity or death.
LIC’s Accidental Death and Disability Benefit Rider:
The Policyholder is provided with an option to avail LICs Accidental Death and Disability Rider Benefit as an optional policy by paying an additional premium. In this policy, the accidental death Benefit Sum Assured will be payable as a lump sum along with the death benefit under the basic plan. In case of accidental permanent disability arising due to an accident, an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years.
Eligibility
| Maximum | Minimum | ||
| Entry Age | 8 years | 55 years | |
| Maturity Age | – | 75 years | |
| Policy term | 12 years | 35 years | |
| Premium Paying terms(In years) | Equal to the policy term | ||
| Premium Paying frequency | Annual, Half-yearly, Quarterly and Monthly | ||
| Sum Assured | 1,00,000 | No-Limit | |
Surrender value
The
New Endowment Plan offers surrender value under which a particular percentage of premium paid is paid back to the insurer in case he/she decided to return the policy after the completion of 3 years. The Guarantee surrender value will be paid and depends on the policy term and policy year.
Policy loan
This plan comes with the benefit of availing the loan after the completion of 3 years. The loan amount is subject to the corporation evaluation and is generally 80-90% of the surrender value.
Free lookup period
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days from the date of receipt of the policy bond stating the reasons of objections.
Revival
The policy can be revived within 2 years for the first unpaid premium. After the first unpaid premium a grace period of 30 days will be provided to the policyholder and premium can be paid within this time period and after that the policy will be lapsed if failed to pay the premium.
Exclusion
Suicide– If the policyholder ends his/her life prematurely within a year’s time from the receipt of the policy, then the policy will be discontinued and the nominee will be entitled to get Policyholder Fund Value.
