LIC New Endowment Plan (LIC Plan No. 914) Details

The LIC's New Endowment Policy is a Non-linked, Participating, Individual Life Insurance Plan which provides the policyholders with an attractive combination of savings & protection. This policy offers a good lump-sum corpus at the maturity in the case of the policyholder’s survival at the end of the coverage term & financial protection to the nominees in case of death of the policyholder during the policy term. The plan also provides loan facilities to policyholders.

1.Benefits in LIC’s New Endowment Plan-

This plan offers the following benefits:

Death Benefit:

Death benefits of "Sum Assured on Death" along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable in case of death of the Life assured during the policy term. The "Sum Assured on Death" has been defined as an amount higher of:

Basic sum assured
7x of Annualized premium

The death benefit payable will be at least 105% of the total premiums paid till death.

2. Benefit at Maturity:

"Sum Assured on Maturity" along with the vested Simple Reversionary Incentives and Final Additional Bonus, if any, would be payable in case the policyholder survives during the policy term. Here, "Sum Assured on Maturity" has been defined as equal to Basic sum assured on the policy.

3. Profit Participation:

The policy will offer a participation in profits of the LIC and therefore, will pay Simple Reversionary Bonuses as declared by LIC during the term.

The Final Additional Bonus may also be paid at maturity or death of the policyholder.

2. Eligibility Criteria and other parameters

Minimum Sum Assured	Rs.1 lakh
Maximum Sum Assured	No upper limit
Entry Age	Minimum Age- 8 Years Maximum Age- 55 Years
Entry Age	Minimum Age- 8 Years Maximum Age- 55 Years	Maturity Age (maximum)	75 Years
Policy Term	Minimum - 12 Years
Policy Term	Maximum - 35 Years

3. Rider Options

The policyholders have the option to include additional riders along with the basic policy. There are 5 optional riders which can be purchased by paying an additional premium along with the basic premium applicable for the policy. The assured can opt for a maximum of 4 riders among the available options as one can only choose one between LIC’s Accidental Death and Disability Benefit Rider & LIC’s Accident Benefit Rider.

The riders are:

LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider
LIC’s New Term Assurance Rider
LIC’s New Critical Illness Benefit Rider
LIC’s Premium Waiver Benefit Rider

4. Death Benefit Payout Option

The policy also offers policyholders an option to choose to receive the death benefit payouts in installments for their nominee. Death benefits can be paid over the period of 5,10 or 15 years instead of a lump-sum amount. It can be exercised by the policyholder during the minority of the life assured, or by the life assured during his/her life-time. The option of installment payment may be selected for part or full death benefits payable upon the death of the policyholder.

The installments will be paid in advance for the selected mode of payout subject to minimum installment amount as under:

Installment Mode	Minimum Amount
Yearly	Rs.50,000
Half-Yearly	Rs.25,000
Quarterly	Rs.15,000
Monthly	Rs. 5,000

5. Premium Payment Options

Premium payments can be regularly made at monthly, quarterly, half-yearly, or yearly intervals or through salary deductions during the term of the policy.

6. Sample Illustration

Below we have shown an annual sample premium illustration for a policy with a sum assured of Rs.1 lakh.

Age	Policy Term (Years)
Age	15	25	35
20 Years	Rs.6,978	Rs.3,930	Rs.2,754
30 Years	Rs.7,007	Rs.3,994	Rs.2,881
40 Years	Rs.7,139	Rs.4,239	Rs.3,249

7. Rebates

The policy also offers a rebate to policyholders on premium in case of higher sum assured amount & for premium payments made on specified installment mode.

High Sum Assured Rebate

Basic Sum Assured	Rebate (as % of B.S.A.)
1 lakh to 1.95 lakhs	Nil
2 lakhs to 4.95 lakhs	2%
5 lakhs to 9.95 lakhs	3%

Mode Rebate

Mode	Rebate(as % of tabular premium)
Quarterly, Monthly & Salary Deduction Mode	Nil
Half Yearly	1%
Yearly	2%

8. Grace Period

The policy offers a grace period of 30 days for premium payments made on a yearly, half-yearly, or quarterly basis from the first unpaid premium date. And a grace period of 15 days is allowed for premium payments made on a monthly basis from the date of the first unpaid premium. The policy will be considered active along with the risk coverage without any interruptions during this period.

The policy will lapse in case the premium is not paid before the expiry of grace period.

9. Revival

The policy becomes inactive & lapses in case the premium is not paid before the completion of the grace period. Such policy can be revived within 5 consecutive years from the first unpaid premium date. The revival can be done after the policyholder makes the payment for the outstanding premium along with the applicable interest for that period and submit the required documents. The interest rate will be applicable as per the rates fixed by LIC which is subject to periodic changes.

10. Loan Facility

The policyholders can also avail the loan facility given that premium payments have been made for at least 2 full years and subject to other terms & conditions as specified by the LIC. The interest rate for the loan & the entire term of the loan will be applicable as per the rates declared by LIC based on the approval by IRDAI.

Any outstanding loan or interest at the time of exit will be recovered from the claim proceeds.

11. Free Look Period

The policyholder has the facility to return the policy to LIC within 15 days from the date of purchase in case he/she is not satisfied with the terms & conditions of the policy. The policy document can be returned by a policyholder to LIC while stating the reasons for dissatisfaction.

On receipt of the policy, the LIC will cancel the policy and refund the amount paid by the policyholder after deducting for expenses like medical tests, special reports, or any stamp duty charges.

12. Suicide Exclusion

This policy will become invalid:

i. If the Life Assured (whether sane or insane) dies by suicide at any time within 12 months of the risk commencement date, the LIC will not be liable to pay for any claims except for the 80% of total premiums paid during the policy term.

ii. If the Life Assured (whether sane or insane) dies by suicide at any time within 12 months of the revival of the policy, the LIC only pay for the amount higher of the surrender value available at the date of death or 80% of the premiums paid till death.

13. Surrender

The policy can be surrendered at any time given that at least premiums for 2 full years have been paid. On surrender, the LIC will pay an amount equal to the higher of the guaranteed surrender value or special surrender value. The special surrender value will be determined by LIC from time to time as per the approval of IRDAI.

The Guaranteed Surrender Value payable during the term of policy will be equal to the total premium payments made multiplied by the guaranteed surrender value factors applicable to total premiums. These factors will depend upon the age of the policyholder & the term of policy at the time of surrender.

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