Life Insurance’s New Endowment Plan (Plan No. 914) (UIN: 512N277V02)

LIC's New Endowment Plan is a participating non-linked plan which offers an attractive combination of protection and saving features. This combination provides financial support for the family of the deceased policyholder any time before maturity and a good lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility.

 

एलआईसी न्यू एंडोमेंट योजना

एलआईसी की न्यू एंडोमेंट योजना एक नॉन लिंक्ड जीवन बीमा योजना है जो आपको गारंटीड रिटर्न के साथ बोनस भी प्रदान करती है। इस योजना को 12 से 35 वर्ष की अवधि के लिए लिया जा सकता है। जिनकी उम्र 8 से 55 वर्ष तक है, वो इस योजना में निवेश कर सकते हैं तथा 75 वर्ष तक इसे जारी रख सकते हैं।

Premium Payment Mode: Yearly, Halfly, Quarterly, Monthly(ECS)

Term :  12 to 35 years

Minimum Entry Age :  8 Year Completed 

Maximum Entry Age :  55 Year (Nearest Birthday)

Maximum Maturity Age :  75 Year

Minimum Sum Assured : 1,00,000

Maximum Sum Assured : NO LIMIT (Depending upon Income, age and health)

Maximum Accidental Death and Disability Benefit Rider up to age 70.

Life Insurance Covers:

Accidental Benefits  & Disability Benefits:-

Equal to Sum Assured (if DAB opted). Max. 50 Lac. Additional amount is payable on death. In the even of death by accident Risk is upto 70 years of age. In the event of total permanent disability, the benefit is payable in 10 years on the monthly basis. Age at entry - 18 years (LBD). Charges Rs. 1p.a.In case of Police Duty Rs. 1.50% p.a.

Death benefit:

Sum Assured + Vested Bonus + FAB if any.,OR

10 times of Annualized Premium, OR 

105%of all Premiums paid as on death,

WHICHEVER IS HIGHER.

In case of death during the policy term provided all due premiums have been paid Death benefit, defined as sum of "Sum Assured on Death" and vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 10 times of annualised premium. This death benefit shall not be less than 105% of all the premiums paid as on date of death.

Where premiums exclude service tax, extra premium and rider premiums, if any.

Maturity Benefit: 

Basic Sum Assured, along with vested simple reversionary bonuses and Final Additional bonus, if any, shall be payable in lump sum on Survival to the end of the policy term provided all due premiums have been paid.

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, provided the policy is in full force.

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, provided the policy has run for certain minimum term.

Optional Benefit:

LIC’s Accidental Death and Disability Benefit Rider: LICs Accidental Death and Disability Benefit Rider is available as an optional rider by payment of additional premium. In case of accidental death, the Accident Benefit Sum Assured will be payable as lumpsum along with the death benefit under the basic plan. In case of accidental permanent 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 and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.

Grace Period: 

If premium payment is Yly, Hly & Qly. It is 1 month, but not less than 30 days. If the payment is monthly than maximum grace is 15 days.

Revival:

If premium are not paid within the grace period then the policy will lapse. A lapsed policy may be revived during the lift time of the Life Assured, but within a period of 2 consecutive years, from the date of first unpaid premium and before the date of maturity.   

Life Insurance Loan :

Loan Facility is available under this plan, after payment of premiums for at least 2 full years.

Nomination/Assignment/Surrender Value: 

Allowed

Cooling Off

15 days from the date of receipt of the Life Insurance Policy Bond. 

Income Tax Benefit :

• Premium paid under this plan is eligible for Tax Saving under section 80c.

• Maturity under this plan is free under sec 10(10D).

Life Insurance Proposal Form : 300/340/360 shall be used under this plan.

Additional Features and Benefits of LIC New Endowment Plan 

Bonus:

There are 2 types of Bonuses are available in this plan:

1) Simple Reversionary Bonus - is declared per thousand Sum Assured annually at the end of each financial year.  Once declared, they form part of the guaranteed benefits of the plan. Bonuses will be added during the selected term or till death, if it occurs earlier. Simple Reversionary Bonus accrues during the premium paying term and is paid at the end of the premium paying term or on earlier death along with the final additional bonus, if any. No bonus is paid on death after the premium paying term.

2) Final Addition Bonus may also be payable provided the policy has run for certain minimum period.

Let us understand with an example:

Ramesh has purchased a LIC New Endowment Plan for 25 years and for Sum Assured of Rs 10 lacs. Now, if the Simple Reversionary Bonus for a particular year is Rs 30, then the Bonus that accrues for Ramesh is:

Bonus= 30/1,000 X Sum Assured = 30/1,000 X 10,00,000= 30,000 for that year.

If the Bonus is assumed to be the same every year for the entire policy tenure of 25 years, then his Simple Reversionary Bonus = 30,000 X 25 = 7,50,000

The Final Addition Bonus does not get multiplied by the number of years. Thus, if Final Addition Bonus is Rs.200 per thousand Sum Assured, then Final Additional Bonus would be calculated as Rs 200/1,000 * Rs.10,00,000 = Rs.2,00,000

Total Bonus = Simple Reversionary Bonus + Final Addition Bonus

Total Bonus = Rs.7,50,000 + Rs.2,00,000 = Rs 9,50,000

What happens if?

You stop paying the premium – If the premiums are not paid within Grace Period, the policy lapses and all benefits cease. However, if at least 3 years’ premiums have been paid, the policy acquires a Paid up Value for a Reduced Sum Assured but the policy would be eligible for any future regular additions.

Reduced Sum Assured = Basic Sum Assured *(Number of Premiums Paid / Total Number of Premiums Payable)

The policy can however be revived within 2 consecutive years from the date of first unpaid premium.

You want to surrender the policy –The policy can be surrendered only after it accrues Cash Value after at least 3 years’ premiums have been paid.This percentage will depend on the policy term and policy year in which the policy is surrendered and specified as per the table mentioned.

You want a loan against your policy – Loan can be availed under the policy provided the policy has acquired a surrender value and subject to the terms and conditions.

For more details, Pooja Manoj Gupta www.giia26.com
Email pmgiia26.com Mobile 9868944340