LIC New Endowment Plus Plan

Here are some of the key attributes and benefits of the plan that you need to consider before buying it:

• 4 Investment Fund Options: Under the plan, the policyholder has the option to choose from 4 investment funds namely, Bond Fund, Secured Fund, Balanced Fund, and Growth Fund. Therefore, you can choose an appropriate option according to your needs and budget.

• Premium Payment Mode: Regular premium payments can be made in annual, half-yearly, quarterly, or monthly installments. Customers should be aware that only ECS is accepted for monthly installments.

• Grace Period: Yearly, half-yearly, and quarterly premium payments have a grace period of 30 days, whereas monthly premium payments have a grace period of 15 days under the plan. The insurance will remain in effect if the life assured passes away during the grace period but before the due date for premium payments. Therefore, the death benefits will be provided following the deduction of all necessary fees.

• Death Benefit: In case the life insured dies prior to the risk commencement date, the nominee is paid with the fund value. However, if the life insured dies after the risk commencement date, higher of the following is paid out:

• • 105% of the total premiums paid
  • 10 X annualized premium
  • Fund value

• Maturity Benefit: If the life assured survives the stipulated date of maturity, he/she is paid with an amount equal to the unit fund value. Either a lump sum payment or equal monthly installments are made for the maturity benefit.

• Rider Benefit: If the policy has a minimum remaining term of 5 years, then the LIC’s Linked Accidental Death Benefit Rider may be selected during the policy term. This rider is valid until the maturity date. This won’t be accessible on a minor’s life, though. Following the completion of 18 years of age, it will be available on the anniversary of the policy.

• Partial Withdrawals: After the fifth policy anniversary, you may withdraw some of the units as long as all unpaid premiums have been paid up to that point. If a partial withdrawal has been made, the basic sum assured or paid-up sum assured, depending on which is applicable, will be decreased by the amount of the partial withdrawals made for two years starting from the date of the withdrawal.

• Switching Option: During the policy period, policyholders can change between several fund types. The cash is transferred once to the chosen new fund. A free four swaps are permitted each policy year. However, there will be a charge of Rs. 100 for each additional swap. A policyholder’s fund value will be transferred to the new fund upon receipt of an application for a switch.

• Settlement Option: One month prior to the maturity date, policyholders have the opportunity to select this option. This option may be activated at any time while the policy is still in effect by indicating the kind of installment and the duration in years (not more than 5 years).

• Commencement Of Risk: If the life assured’s age at entrance is less than eight years, the risk will begin either one day before the policy’s two-year anniversary or one day before the policy’s anniversary that falls on, precedes, or follows the completion of eight years, depending on which occurs first. Risk will start right away if the age of the life assured is 8 years or greater at admission.