fbpx
+91 77 392 75892 info@licworld.co.in
Why is LIC’s New Endowment Plan the Best Choice for Young People?

Why is LIC’s New Endowment Plan the Best Choice for Young People?

LIC New Endowment Plan

LIC New Endowment Plan is a non-linked, participating plan that offers an attractive combination of security and savings features. Offers guaranteed returns and bonuses. This is a traditional life insurance plan. You can take this endowment plan with the many benefits in mind. With its expert customer service, the LIC of India helps you get the best insurance policy according to your needs and suitability. You can choose the policy term from 12 to 35 years. Anyone between the ages of 8 and 55 can take this policy and it can continue for up to 75 years. You pay a premium for the entire term of the policy. This plan is included in the basic LIC plans that provide death and maturity benefits. The maturity benefit is equal to the Sum Assured plus the Simple Reversionary Bonus acquired + the Final Addition Bonus. Here you have everything you want to know.

Plan No.932
Launch Dated1 Feb 2020

Why we should buy this New Endowment Plan?

The New Endowment Plan is one of the best plans of LIC that offers both protection and saving features. The following are the key features that make it a perfect plan for young people.

LIC New Endowment Plan

  • It assures you good returns and bonuses.
  • It is one of the traditional plans of LIC.
  • If the insured person dies before the maturity period, the nominee will get the death benefit and the policy will be terminated.
  • It pays a good lump sum amount to the surviving policyholder at the end of the maturity period and then the policy terminates.
  • It allows a flexible entry age from a minimum of 8 years to a maximum of 55 years.
  • The policy premium can be paid through annually, half-yearly, quarterly or monthly installments.
  • It provides to the policyholder through its loan facility in case of liquidity needs.

What are the benefits available for this New Endowment Plan?

  • Death Benefit

This plan offers the death benefit (sum assured) too, in terms of Simple Reversionary Bonus acquired and the Final Additional Bonus to the family of the insured in the event of the death of the insured during the term of the policy. Thereafter, the policy ends.

Provided that the policy includes “Sum insured in case of death”, where the given term is defined as greater than the basic sum insured or 10 times the annual premium with a minimum of 105% of the total premium paid.

  • Maturity Benefit

On survival of insured person till the maturity date, he/she will get the Basic Sum Assured with vested Simple Reversionary Bonus and Final Additional Bonus( if any) and the policy will then terminate.

  • Income Tax Benefit

The policyholder of this plan entertains a tax exemption up to Rs 1,50,000 under Section 80(C) of  Income Tax act on the annual insurance premium to be paid and also the maturity amount is exempted from tax, terms, and conditions are there.

  • Participation in Profit

This New Endowment Plan of LIC also includes a share of the profit of the company. It gives Simple Reversionary Bonuses with Final Additional bonus, calculated on the basis of experience of the company, terms and conditions are there.

What are the Provisions and restrictions of this New Endowment Plan?

  • Entry Age

Minimum8 years
Maximum55 years
  • Basic Sum Assured (in Rs.)

Minimum1,00,000
MaximumNo Limit (multiple of 5000)
  • Policy Term

Minimum12 years
Maximum35 years
  • Maturity Age

Maximum75 years
  • Monthly Premium (in Rs.)

Minimum250
Maximum10000

What will be the date of commencement of risk under the New Endowment Plan?

The risk will commence immediately on acceptance of the risk

What are the options available for this New Endowment Plan?

This plan has five optional riders when you pay an additional premium. A maximum of four riders one can avail of whereas the policyholder has to choose either LIC’s Accidental Death and Disability Benefit Rider or LIC’s accidental benefit rider.

The five riders are:

  • Accidental Death and Disability Rider
  • Accidental Benefit Rider
  • New Critical Illness Benefit Rider
  • New Term Assurance Rider
  • Premium Waiver Benefit Rider

Sum assured under each rider cannot exceed the Basic Sum Assured under the policy.

For more details, please refer to the Rider Brochure on the LIC’s official website or contact the nearest branch of LIC.

What is the option to take Death Benefit in installments?

Yes, instead of taking the lump sum amount you can split it into a number of installments over a period of 5 or 10 or 15 years. The insured person will be paid the installments in advance at monthly or quarterly or half-yearly or yearly intervals.

The minimum installment amount for different intervals are:

Mode of installment paymentMinimum Instalment Amount (in Rs.)
Yearly50000
Half-yearly25000
Quarterly15000
Monthly5000

What is the Payment of Premiums mode available for this New Endowment Plan?

Premiums are to be paid at regular intervals such as monthly, quarterly, half-yearly, or yearly (through NACH only) or through salary deductions.

What is Grace Period for this New Endowment Plan?

In case the policyholder cannot pay the premium on time, a grace period of 30 days is available for yearly, half-yearly and quarterly payments whereas a 15 days grace period for monthly payments is available. If the premium is not paid before the expiry date of the grace period, the policy lapses.

Such grace period also covers the rider’s premiums along with the base policy premium.

What are the Rebates available for this plan?

  • Mode Rebate

Yearly mode2% of Tabular Premium
Half-yearly mode1% of Tabular Premium
Quarterly, monthly and Salary DeductionNIL
  • Basic Sum Assured (B.S.A.) Rebate (in Rs.)

100000-195000NIL
200000-4950002% of B.S.A.
500000 and above3% of B.S.A.

What is Revival?

If the policyholder fails to pay the premium within the grace period and the policy lapses, then a revival period is also there. The revival period is of 5 consecutive years from the due date of first unpaid premium but before the date of maturity, as the case may be.

The revival of policy will come into effect only after the submission of all the due premiums with its interests compounding half-yearly at the rate fixed by the corporation from time to time and on the satisfaction of Continued Insurability of the life assured and/or proposer (if Premium Waiver Benefit Rider is opted for).

What is Paid-up Value?

If the premiums are paid regularly on time for at least two full policy years, and after that, any subsequent premium is not paid within the grace period, then the policy will not become wholly void but will subsist as a paid-up policy till the end of the policy term.

Such paid-up policy cannot participate in future profits but bonus remains attached to the reduced paid-up policy.

What is the Surrender Value?

After the payment of premiums without any lapse for at least two years, the policy can be surrendered with the interest of the policyholder and the corporation will pay the surrender value equal to higher of Guaranteed Surrender Value or Special Surrender Value.

If there is any bonus or rider opted for, it will be calculated on the basis of the ratio of Surrender Value.

What is Policy Loan?

After at least two full years premium have been paid, the loan can be granted under the policy subject to the terms and conditions of the corporation.

What is the Free Look Period?

In case the Policyholder has some personal problems or he is not satisfied with the terms and conditions of the policy, there is a Free Look Period of 15 days from the date of accepting the bond within which he/she has to return the policy to the corporation by citing the reason. Then the policy will be canceled and after deducting the processing charges, the premium will be returned.

What are the Exclusions?

  • By the way, if the insured (whether sane or insane) commits suicide within 12 months from the date of commencement of risk. As a result, the corporation will not accept any claim on the policy. Only 80% of the total premium paid would be returned provided the policy is in force.
  • Similarly, if the insured (whether sane or insane) commits suicide within 12 months from the date of revival then an amount that is higher of 80% of the total premiums paid till the date of death or the surrender value available as on the date of death shall be payable. The corporation will not entertain any other claim on this.

This clause will not be applicable for a lapsed policy without acquiring paid-up value and nothing will be paid under said policy.

Read to know more about this:

LIC की बहुत ही जबरदस्त स्कीम, 27 रुपये रोजाना करें निवेश, मिलेगा एकमुश्त 10.62 लाख।

Also, read this – Why is LIC’s New Jeevan Anand Plan the Best Choice for Young Couple?

Plan Illustration (7)

Plan Illustration

New Endowment Plan Illustration (1) New Endowment Plan Illustration (2) New Endowment Plan Illustration (3) New Endowment Plan Illustration (4)

Disclaimer:
The Premium amount shown here is indicative and informational. The actual premium amount can vary according to underwriting rules. Maturity calculations shown here are also based on the current bonus rates. It can also vary based on the actual performance of the corporation. For more details on risk factors, terms, and conditions, please read the policy documents carefully before concluding a sale.

FAQsFAQs on LIC’s New Endowment Plan

Dummy
Invisible
How much bonus is declared under the plan?
It is not fixed. It depends upon the performance of the corporation and is paid only if the corporation makes a profit.
Is it possible to date back the policy?
Yes, it can be dated back within the same financial year with additional charges.
What type of bonus is declared under the policy?
The plan pays simple reversionary bonuses for every year till the policy is in force. In case of death during the policy term or on maturity, a Final Bonus might also be paid in addition to the vested bonuses.
Does the plan provide a loan facility?
Yes, after 3 years, policyholders can avail loan facility as per the Surrender Value.
Are there any rebates on the premium?
Yes, there are two types of premium rebates available.

The first on the high Sum Assured like 1.50% to 3%.

The second on premium paying Mode like 2% on Yearly or 1% on half-yearly mode.

Are riders available under the plan?
Yes, the plan offers an optional rider like Accidental Death and Disability Benefit Rider.
LIC

LIC's Market Share 75.9%, Growth in NB Premium 39.46%, Growth in 1st Year Premium 25.17%, Growth in Total Premium 12.42%, Growth in Gross Total Income 9.83%, Growth in Total Asset Value 2.71%, Growth in Digital Transaction 36% in FY 2019-20.

It also has a Claim Settlement ratio of 98.33%.

It is the most trusted Life Insurance Company in the country. It has a Sovereign Guarantee which other Companies don't have.

coolWHY GO SOMEWHERE ELSE?

Why should We Buy LIC’s Single-Premium Endowment Plan?

Why should We Buy LIC’s Single-Premium Endowment Plan?

LIC’s Single Premium Endowment Plan

LIC Single Premium Endowment Plan No. 917 – is a participating, non linked endowment plan. In this plan, the premium is paid at the beginning, which is paid in a Lumpsum. It serves the investment purpose and even ensures it if one faces premature disappearance. There is a sure short return on this plan, this means that these plans are safe and provide financial benefits to you. The Single Premium Endowment Plan offers twin benefits of life protection and savings. Single Premium Endowment plans to provide coverage against risks and offer guaranteed returns. You can select the amount of coverage you want, depending on the details of the policy and the term that suits you best. Also, plans like the LIC Single Premium policy offer considerable premium discounts if you decide on a higher sum insured. This dual combination of protection and savings ensures that the family is always in a good financial position at all times. If the policyholder dies, it pays the Sum Insured plus the bonuses that can be declared every year (called the reversionary bonus) and at the end of the policy (called the terminal bonus). If the policyholder survives the term, this plan grants a Lumpsum payment based on the maturity benefit. These plans, therefore, allow you to create a secure corpus for your future. Single Premium Endowment plans are suitable for people who are looking for guaranteed returns on their investments and also want to have insurance coverage. These policies are basically for a long period of time since it helps to increase the overall returns that a person obtains at the end of the policy tenure. Even rebates exist on a Single Premium Endowment Plan if the highest sum is quoted. You can even avail of loans on this plan after 1 year. Here is everything you want to know.

Plan No.917
Launch Dated1 Feb 2020

Why we should buy this Single Premium Endowment Plan?

LIC’s Single Premium Endowment Plan is a Non- Linked, Participating, Individual, Life Assurance saving plan which offers an attractive combination of savings and protection features. The premium is paid in lump-sum at the outset of the policy. This combination provides financial protection against death during the policy term with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.

What are the Benefits available for this Single Premium Endowment Plan?

Death Benefit:

  • On death during the policy term before the date of commencement of risk: Return of single premium (excluding taxes extra premium and rider premiums if any), without interest.
  • On death during the policy term after the date of commencement of risk: Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus if any.

Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 1.25 times of Single premium (excluding taxes, extra premium and rider premiums, if any).

Maturity Benefit:

On Life Assured surviving the policy term, Sum Assured on Maturity, along with vested Simple Reversionary Bonuses and Final Additional Bonus if any, shall be payable.

Participation in Profits:

The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation.

Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity on such terms and conditions as may be declared by the Corporation from time to time.

What are the eligibility conditions and other restrictions?

  1. Minimum entry age: 90 days (completed)
  2. Maximum entry age:  65 years (nearest birthday)
  3. Maximum maturity age: 75 years (nearest birthday)
  4. Minimum policy term: 10 years
  5. Minimum age at maturity: 18 years (completed)
  6. Maximum policy term: 25 years
  7. Minimum Sum Assured: Rs.50,000
  8. Maximum Sum assured: No limit

Sum Assured will be in multiples of Rs.5,000 /- only.

  1. Premium payment mode: Single premium only

Date of Commencement of Risk: In case the age of Life Assured at entry is less than 8 years, f risk under this plan will commence either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.

What are the options available for this Single Premium Endowment Plan?:

Rider Benefits:

The following two optional riders are available under this plan by payment of additional premium.

LIC’s Accidental Death and Disability Benefit Rider

This rider is available at the inception of the policy only. If this rider is opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan. In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years.

LIC’s New Term Assurance Rider

This rider is available at the inception of the policy only. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, an additional amount equal to Term Assurance Rider Sum Assured shall be payable on the death of the Life Assured during the policy term.

The premium for LIC’s Accidental Death and Disability Benefit Rider shall  not exceed 100% of premium under the base plan and the premiums under all other life insurance riders put together shall not exceed 30% of premiums under the base plan

Each of the above Rider Sum Assured cannot exceed the Basic Sum Assured under the Basic plan.

For more details on the above riders, refer to the rider brochure or contact LIC’s nearest Branch Office.

What is the option to take Death Benefit in installments?

This is an option to receive a death benefit in installments over the chosen period of 5 or 10 or 15 years instead of a lump-sum amount. This option can be exercised by the Policyholder during the minority of the Life Assured or by Life Assured aged 18 years and above, during his/her lifetime; for full or part of Death benefits payable under the policy. The amount opted for by the Policyholder/Life Assured (i.e. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable.

The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:

Edit Table

 

If the Net Claim Amount is less than the required amount to provide the minimum installment amount as per the option exercised by the Policyholder/Life Assured, the claim proceeds shall be paid in lump sum only.

The interest rates applicable for arriving at the installment payments under this option shall be as fixed by the Corporation from time to time.

For exercising an option to take Death Benefit in installments, the Policyholder during the minority of the Life Assured or the Life Assured, if major, can exercise this option during his/her life while in the currency of the policy, specifying the period of Instalment payment and net claim amount for which the option is to be exercised. The death claim amount shall then be paid to the nominee as per the option exercised by the Policyholder/Life Assured and no alteration, whatsoever, shall be allowed to be made by the nominee.

How can I understand through a sample illustrative premium?

The sample Illustrative Single premium (exclusive of taxes) for Basic Sum Assured of Rs 1 lakh for Standard lives are as under:

 

How much rebate can I avail for High Sum Assured?

High Sum Assured Rebates:

 

How can I avail policy loans in this plan?

A loan can be availed under this plan any time after completion of the first policy year and subject to terms and conditions as the Corporation may specify from time to time.

The interest rate to be charged for policy loan and as applicable for the entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

How and when can I surrender my policy?

The policy can be surrendered at any time during the policy year. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value or Special Surrender Value.

The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI

The Guaranteed Surrender Value allowable shall be as under:

  • First-year: 75% of the Single premium
  • Thereafter: 90% of the Single premium.

Single premium referred above shall not include taxes, extra premium & rider premium(s) if any.

In addition, the surrender value of vested simple reversionary bonuses, if any, shall also be payable, which is equal to vested bonuses multiplied by the Guaranteed Surrender Value factor applicable to vested bonuses. These factors will depend on the policy term and policy year in which the policy is surrendered.

The Corporation may, however, pay Special Surrender Value as applicable as on date of surrender provided the same is higher than Guaranteed Surrender Value.

What are the taxes implication?

Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of applicable taxes, as per the prevailing rates, shall be payable by the policyholder on the single premium including extra premium & rider premium(s), if any, which shall be collected over and above in addition to the premiums payable by the policyholder. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.

Regarding Income tax benefits/implications on the premium paid and benefits payable under this plan, please consult your tax advisor for details.

How many days I would get for a free look period for this Single Premium Endowment Plan?

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 stating the reason for objections. On receipt of the same, the Corporation shall cancel the policy and return the amount of single premium deposited after deducting the proportionate risk.

premium (for the base plan & rider(s) if any) for the period of cover, an expense incurred on medical examination, special reports, if any, and stamp duty charge.

What are the exclusions for this Single Premium Endowment Plan?

Suicide:

The policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and under such case an amount which is higher of 90% of the Single Premium for Base Policy (excluding any taxes extra premium and rider premiums other than term assurance rider premium if any) or Surrender Value available as on the date of death shall be payable. The Corporation will not entertain any other claim under this policy. 

Read to know more about this:

LIC के Single Premium Endowment Plan में रहता है ड्यूल बेनेफिट, पॉलिसी के 1 साल बाद लोन का भी विकल्प; जानें डिटेल्स।

Also, read this – Why is LIC’s New Endowment Plan the Best Choice for Young People?

Plan Illustration (4)

Plan Illustration

Single Premium Endowment Plan (1) Single Premium Endowment Plan (2) Single Premium Endowment Plan (3) Single Premium Endowment Plan (4)

Disclaimer:
The Premium amount shown here is indicative and informational. The actual premium amount can vary according to underwriting rules. Maturity calculations shown here are also based on the current bonus rates. It can also vary based on the actual performance of the corporation. For more details on risk factors, terms, and conditions, please read the policy documents carefully before concluding a sale.

FAQsFAQs on LIC’s Single Premium Endowment Plan

Dummy
Invisible
What are the modes of premium payment?
Yearly/Half-yearly
×