Investment Plans 375 views August 6, 2020

LIC New Endowment Plus Plan

During such inflation, it is necessary for an individual to make investments and accumulate some funds for their future. But nowadays most of the individuals prefer an investment insurance plan because not only it helps to boost up their savings but also gives them a life cover. One such plan is LIC New Endowment Plus Plan that is a unit-linked plan and you will have to pay a regular premium for it. It is an individual life insurance plan that will also cover your life. On the other hand, it includes death and maturity benefits. The company also allows you to make partial withdrawals during the policy term. So, you can see the key features of this insurance plan so that you can make the best use of it.

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Key Features of New Endowment Plus Plan

  1. This plan is a non-participating unit-linked plan.
  2. It will also give you a life cover throughout the policy term.
  3. The payment of the premium has to be made on a regular basis.
  4. The minimum age of entry in this insurance plan is 90 days.
  5. You can make partial withdrawals during the policy term.
  6. You are free to between four funds available in this policy.
  7. The company also gives you a grace period if you are unable to pay the premium on time.
  8. The company allows you to take the death benefits in installments.

Key Benefits of New Endowment Plus Plan

There are some exciting benefits of this plan that will help you to understand this plan better. You must go through all of them before buying the plan.

Death Benefits

During the unfortunate death of the insured, the nominee is entitled to receive the death benefits. There are two conditions for the death benefits and they are:-

If the insured dies before the date of the commencement of risk:-

  1. Amount equal to the Unit Fund Value Shall be Payable.

If the insured dies after the date of the commencement of risk then the highest of the following will be payable:-

  1. Basic Sum Assured excluding partial withdrawals.
  2. Unit Value
  3. 105% of all the premiums paid until the time of death.

Maturity Benefits

If the insured survives the policy term then he is entitled to receive the maturity benefits in this insurance plan. The maturity benefits will include the Unit Fund Value and it shall be payable after the expiry of the policy term.

Rider Benefits

You can also add a rider to this plan to cover some extra risks related to an accident. The company allows you to add LIC Linked Accidental Death Benefit Rider to the LIC New Endowment Plus Plan in which all the risks related to the death due to an accident will be covered. There are some terms and conditions of this rider.

  1. The rider’s sum assured value cannot exceed the basic sum assured.
  2. You can add a rider to this plan in any policy year but there must be 5 years outstanding until the expiry of the policy.

Partial Withdrawals Benefits

The company allows you to make partial withdrawals after the 6th policy year in this insurance plan. If you go through any kind of emergency during the policy term then you can make partial withdrawals in order to meet them. You can see the percentage of the maximum partial withdrawals in the table given below:-

Policy YearPercentage of the Fund Value for Withdrawal
6th Year to 10th Policy Year3 Annualized Premiums or 50% of the Fund Value (Whichever is Higher)
11th Year to 20th Policy Year3 Annualized Premiums or 25% of the Fund Value (Whichever is Higher)

Switching Between Funds

The company also allows you to switch freely among 4 funds available in the New Endowment Plus Plan. The funds available in this plan are as follows:-

  1. Bond Fund
  2. Secured Fund
  3. Balanced Fund
  4. Growth Fund

Surrender Benefits

The company allows you to surrender the policy anytime during the policy term if you are in need of money. The surrender benefits will be paid as follows:-

  1. If you surrender the policy during the first five policy years then you will get Unit Fund Value as the surrender benefits and the discontinuance charges will be deducted.
  2. If you surrender the policy after the first five policy years then you will get Unit Fund Value without any deducting the discontinuance charges as the surrender benefits.

Free Look Period

There is a free-look period offered by the company during which you can return the policy if you don’t find it interesting. The free-look period offered are as follows:-

  1. 15 Days of Free-Look Period if the Policy is purchased directly from the company.
  2. 30 Days of Free-Look Period if the Policy is purchased online.

LIC New Endowment Plus Plan Eligibility Criteria

ParticularsDetails
Basic Sum Assured10 Times of the Annualized Premium
Minimum Age of Entry90 Days
Maximum Age of Entry50 Years
Minimum Maturity Age18 Years
Maximum Maturity Age60 Years
Policy Term10 Years to 20 Years
Premium Paying ModeRegular Premium
Minimum Premium AmountRs.20000 for Yearly Payment Mode
Rs.13000 for Half-Yearly Payment Modes.
Rs8000 for Quarterly Payment Mode
Rs.3000 for Monthly Payment Mode
Maximum Premium AmountNo Limit

Charges of the Policy

  1. Premium Allocation Charges
  2. Mortality Charges
  3. Fund Management Charges
  4. Switching Charges
  5. Partial Withdrawal Charges
  6. Discontinuance Charges
  7. Right to Revise Charges

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