LIC New Endowment Plus Plan
LIC New Endowment Plus (Plan No. 935, UIN No. 512N301V02) is a unit-linked insurance plan that provides access to both investment and insurance alternatives to the policyholder. Each premium that the policyholder pays is subject to a premium allocation charge under this policy. The designated premium will be used to purchase the units. This plan was created especially for you to give you a very good combination of security and long-term savings and to give you more freedom to improve your life and realize your aspirations.
Eligibility Criteria Of LIC New Endowment Plus Plan
|Date Of Launch||1.02.2020|
|Minimum Entry Age||90 Days (Completed)|
|Maximum Entry Age||50 Years (Nearest Birthday)|
|Minimum Maturity Age||18 Years (Completed)|
|Maximum Maturity Age||60 Years (Nearest Birthday)|
|Policy Term||10 To 20 Years|
|Basic Sum Assured||10 X Annualized Premium|
Key Attributes & Benefits Of 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.
Charges Under LIC New Endowment Plus Plan
Below are the charges involved under the plan:
- Premium Allocation Charges: It is the portion of the premium allotted to charges derived from the premium. The portion of the premium utilized to purchase units for the policy is known as the allocation rate. The following table includes a list of the allocation fees:
Premium Premium Allocation Charge 1st Year 7.50% 2nd To 5th Year 5.00% 6th Year & Thereafter 3.00%
- Mortality Charge: This is the age-specific cost of life insurance coverage, which will be deducted at the start of each policy month by canceling the necessary number of units from the unit fund.
- Accident Benefit Charges: If selected, the Accident Benefit Charge is the price of the LIC’s Linked Accidental Death Benefit Rider. While the policy is in effect, this charge will be collected at the beginning of each month by withdrawing the necessary number of units from the unit fund at a rate of Rs. 0.40 per thousand Accident Benefit Sum Assured each policy year.
- Fund Management Charge: For all fund types, the fund management charge will be 0.70 percent per year of the unit fund, and for the “Discontinued Policy Fund,” it will be 0.50 percent per year of the unit fund. This fee is assessed at the time of the NAV computation, which is carried out every day.
- Policy Administration Charge: This is the fee for the administration of the policy, and it is subtracted each month by unit cancellation. These prices only apply to annual premiums; they are slightly higher for other types of premium payments.
- Switching Charge: When switching from one fund to another, this fee is assessed. Within a policy year, four switches are permitted at no additional cost. There will be a charge of Rs. 100 for each additional swap.
- Partial Withdrawal Charge: This fee is assessed to the unit fund when a portion of the fund is withdrawn within the term of the contract. On the day when a partial withdrawal occurs, a fixed sum of Rs. 100 will be taken out of the unit fund by cancelling the corresponding number of units.
- Discontinuance Charge: The “date of discontinuance of the policy” shall be the earlier of the day LIC is notified of the discontinuance or surrender of the policy or the expiration of the 30-day notice period. The notice period will begin when a policyholder receives the notification.
The discontinuance fee will be assessed by removing the appropriate number of units from the unit fund as of the surrender date or policy cancellation date. The required amount of units from the unit fund must be cancelled in order to deduct the discontinuance charge.
- Tax Charge: Service tax will be charged in accordance with the applicable tax regulations and service tax rate. Service tax shall be applied to all applicable charges as determined by the Government of India.
- Miscellaneous Charges: A cost of Rs. 50 will be charged for any modifications, such as changing the way premium payments are made or adding the Accident Benefit Rider after the policy has been issued. This price will be withdrawn by cancelling the appropriate number of units from the policyholder’s fund. The deduction will be applied to the modified date.
Premium Calculation Of LIC New Endowment Plus Plan
If you are planning to buy LIC New Endowment Plus Plan, you might be wondering how much premium amount you need to pay. Therefore, we have calculated the premium amount for you with respect to various criteria:
|Name||Age (In Years)||Gender||Sum Assured||Policy Term (In Years)||Premium Amount|
|Shobha Kumari||29||Female||Rs. 2,00,000||10||Rs. 20,000|
|Ganesh Aggarwal||42||Male||Rs. 3,00,000||12||Rs. 30,000|
|Priyanka Joshi||50||Female||Rs. 5,00,000||15||Rs. 50,000|
|Rachit Singh||47||Male||Rs. 3,50,000||10||Rs. 35,000|
What’s Not Included In LIC New Endowment Plus Plan?
The nominee or beneficiary of the policyholder shall be entitled to the Unit Fund Value available in the event of the policyholder’s suicide within 12 months of the date on which the risk first became apparent or from the date on which the policy was revived.
In addition to the death certificate, any costs other than Fund Management Charges (FMC) that are recovered after the date of death must be added back to the Fund Value that was accessible at that time. If the Life Assured’s age at admission or age at revival is less than eight years old, this clause won’t apply.
How To Purchase LIC New Endowment Plus Plan?
As the plan is not available to buy online on the LIC’s website, you can purchase this plan by any offline method. Just contact the customer care personnel and he/she will guide you through the buying process. You can also visit any nearby branch office of LIC and ask the agent to help you throughout the process. However, before buying this plan, it is advised to go to the official website of the company to know about the plan details.
Frequently Asked Questions
Yes. You may! Within 15 days of the free look period, you can cancel the insurance if you are unhappy with its terms after purchasing it. The amount will be repaid once stamp duty and, if applicable, medical examination fees have been paid. This amount includes the value of the fund units and the unallocated premium with charges removed.
Yes, you may surrender your policy at any moment during the policy term. However, there are some terms and conditions you need to follow, which you can check in the respective plan’s brochure.
Loans are not permitted under this scheme, thus no.
You can surrender only after the completion of 5 years and the fund value as on the surrender date will be paid to the policyholder.
The minimum premium amount under the LIC’s New Endowment Plus Plan on a yearly, half-yearly, quarterly, and monthly basis are Rs. 20,000, Rs. 13,000, Rs. 8,000, and Rs. 3,000 respectively. However, if we talk about the maximum premium amount to be paid under the plan, there is no limit to that.