LIC’s New Endowment Plus Plan is a unit-linked insurance plan popularly abbreviated as ULIPs. The New Endowment Plus is a mixture of insurance and investment. Premiums needed to be paid for the entire policy term. You have a choice of investing money in any of the 4 funds as per the risk appetite. The Fund Value is paid on policy maturity as Maturity Benefit to the policyholder. No Loan.
The available four funds are-
| Fund Name | Risk – Return | Investments |
| Bond Fund | Low Risk | At least 60% in Government Guaranteed Securities & Corporate Debt. Rest in other money market instruments and listed shares |
| Secured Fund | Low to Medium Risk – Steady Income | At least 45% in Government Guaranteed Securities & Corporate Debt. Rest in other money market instruments and listed shares |
| Balanced Fund | Medium Risk – Balanced Income & Growth | At least 30% in Government Guaranteed Securities & Corporate Debt. Rest in other money market instruments and listed shares |
| Growth Fund | High Risk – Long-term Capital Growth | At least 20% in Government Guaranteed Securities & Corporate Debt. Rest in other money market instruments and listed shares |
Benefit
Maturity benefit
The maturity benefit for the policyholder surviving the policy term, an equal amount to policyholder fund value will be payable. The maturity benefit can be payable either in lump-sum amount or in equal installment.
Death benefit
On the death of the policyholder before the date of maturity then an equal amount to the policyholder fund value will be paid for the death before the commencement of risk. For after the date of commencement of risk, higher of Basic Sum Assured or Fund Value will be paid. The Basic Sum assured is 10 times the annualized premium or 105% of the premium paid whichever is higher.
Additional benefit
LIC Linked Accidental Rider Plan
You have an option to link LIC Linked Accidental Rider Benefit with this plan. The benefit payable with this plan will be in the case of an accident occurred and the amount equal to the Accidental Rider Basic Sum assured will be payable and this amount cannot exceed the Basic Sum Assured for the main policy.
Partial Withdrawal
Partial withdrawal is allowed after the 5th policy year. The partial withdrawal will be allowed only if the minimum balance is maintained which is stated below-
From 6th to 10th policy year: The higher of 3 annualized premiums or 50% of Policyholders’ Fund Value.
From 11th to 20th policy year: The higher of 3 annualized premiums or 25% of Policyholders’ Fund Value.
Switching
Every year four free switching between the fund options is allowed after that a charge of Rs.100 is applicable.
Eligibility
| Maximum | Minimum | |
| Policy Term | 10 years | 20 years |
| Premium Payment Term | Same as policy | |
| Age at entry | 90 days | 50 years |
| Age at Maturity | 18 years | 50 years |
| Premium Payment Mode | Yearly, Half Yearly, Quarterly, Monthly | |
| Premiums | ||
| Yearly
Half Yearly Quarterly Monthly |
20,000
13,000 8,000 3,000 |
No Limit |
Charges Associated with the Policy
Premium Allocation Charge
| Policy Year | Charge |
| 1st | 7.5% of premiums |
| 2nd to 5th | 5% of premiums |
| 6th onwards | 3% of premiums |
Policy Administration Charge
| Policy Year | Charge |
| 1st year | Lower of Rs. 100 or (0.35% x Premium) |
| 2nd year | Lower of Rs. 70 or (0.25% x Premium) |
| 3rd year | 2nd-year charge x 1.03 |
| 4th year | 3rd-year charge x 1.03 |
| 5th year | 4th-year charge x 1.03 |
| 6th year onwards | Rs. 52.17 in 6th, increasing by 3% annually |
In case of a payment other than Annual, the following Factor needs to be multiplied to the Annual Mode charges shown above-
| Mode of Payment | Factor |
| Half-Yearly | 1.6 |
| Quarterly | 2.6 |
| Monthly | 7 |
Fund Management Charge
| Fund Type | Charge |
| Bond, Secured, Balanced & Growth | 0.7% per annum |
| Discontinued Policy Fund | 0.5% per annum |
Discontinuation Charge
| Year of Discontinuation | Annual premium <= Rs. 25,000 per annum | Annual premium > Rs. 25,000 per annum |
| 1st | Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs. 2,500 | Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs. 6,000 |
| 2nd | Lower of 7.5% of (Annual Premium or Fund Value) subject to a maximum of Rs. 1,750 | Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs. 5,000 |
| 3rd | Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs. 1,250 | Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs. 4,000 |
| 4th | Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs. 750 | Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs. 2,000 |
| 5th onwards | Nil | |
Surrender value
The policy can be surrendered at any time during the policy period. The fund payable in this condition will be transferred to the Discontinued Policy Fund and the amount has a lock-in period of 5 years
Surrender Value before the lock in the period- If the policy is discontinued before the period of 5-years then the fund value after deducting the discontinuation charge will be transferred to the Discontinued Policy Fund which will be released after the lock-in period. In case of death of the policyholder then this amount will be payable immediately to the nominee.
Surrender Value after the lock in the period- If the policyholder surrenders the policy after the 5 year lock-in period then the fund value in the account will be payable immediately.
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
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.
