LIC New Endowment Plan 2024 Benefits, Features, Details, Reviews

The New Endowment Plan from LIC is a standard savings-focused life insurance plan. In addition to assisting you in saving money and generating returns, the plan also provides insurance against the possibility of dying too soon. You can purchase the policy to achieve a variety of your future financial objectives.

This is a participating endowment plan with bonuses earned over the course of the policy. If you want to expand the policy’s coverage, you can add an optional rider to the plan. Premiums are paid over the course of the policy. Premium discounts are allowed under the plan to help reduce premiums.

Eligibility conditions of LIC Endowment Plan

The different types of benefits paid by LIC’s New Endowment Plan are as follows –

Death benefit

On the off chance that the protected bites the dust before the strategy residency reaches a conclusion, a passing advantage is payable. The Sum Assured on Death, vested reversionary bonuses, and any final bonuses are all included in this death benefit.

Maturity benefit

The term “mature” refers to the policy’s end of the specified term. The policyholder receives the sum assured, any vested reversionary bonuses, and any final additional bonus as maturity benefit upon the policy’s expiration.

Bonus 

In addition, depending on its profit history, LIC may also pay a final additional bonus at the time of maturity or death benefit payment.

Rider benefit

The Accidental Death and Disability Benefit Rider from LIC is an optional coverage benefit included in the plan. Accident-related injuries and deaths are covered by this rider. The rider provides an additional benefit in addition to the policy’s base benefit in the event of an accident that results in the insured’s death or permanent disability. The rider sum assured is paid in the event of an accidental death. On the other hand, in the event of a permanent disability, the rider sum assured is paid out over ten years in equal installments. Moreover, the policy continues even though future premiums are waived.

Eligibility Criteria for LIC’s New Endowment Plan

Other benefits offered by LIC’s New Endowment Plan are as follows

Paid-up value

You would not lose the benefits of the plan if you have paid premiums for all three policy years and are unable to pay future premiums. In this scenario, the plan would be paid for and operate at a value that was paid for. The reduced value of the sum assured that you selected for the plan would be the paid-up value. In addition, the amount referred to as the total paid-up value would be the sum of all bonuses accrued up to the time the policy becomes fully paid out.

Surrender value

You can also terminate the policy before the tenure ends if the policy has reached paid-up status and a paid-up value. The term “surrender of the life insurance policy” refers to this termination. The surrender value would be paid when you surrender LIC’s New Endowment Plan. The special surrender value or the guaranteed surrender value are both lower than this surrender value. LIC periodically determines the special surrender value.

Revival

You have the option of reactivating an expired policy with a paid-up value. The policy is reinstated, and the promised plan benefits are paid out in addition to the full sum assured. You would be required to pay the entire outstanding premium as well as interest on the outstanding premium to reinstate a policy that had expired. Additionally, a declaration of good health would be required, and the policy would be renewed if the company is satisfied with your insurability. Within two years of the date of the first unpaid premium, renewals are permitted.

Policy loan

A surrender value is added to the policy if all premiums for at least three policy years have been paid in full. After that, you can get a loan through the plan if you want to. The loan amount would be based on a percentage of your policy’s surrender value. The business will determine your maximum loan amount. Additionally, the loan would require the payment of interest, which would be determined periodically by LIC.

The New Endowment Plan of LIC includes suicide exclusions. These exclusions are as follows: The promised death benefit will not be paid if the insured dies by suicide within a year of purchasing the policy. In such a scenario, 80% of the paid premiums would be reimbursed. The promised death benefit would not be paid if the insured committed suicide within a year of the date the policy was reinstated. The higher of 80% of the premiums paid or the surrender value on the date of death would be reimbursed in such a circumstance.

If you purchase LIC’s New Endowment Policy, the typical rates of premiums that will be due are as follows:

• The following assumptions are used in the calculation of the rates: the sum assured is INR 5 lakhs;
• the life insured is healthy and nonsmoking;
• the premiums are paid annually;
• the rider is not selected under the plan;
• the premium amount does not include any taxes that may be applicable;
• the high sum assured rebate is not taken into account.

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