LIC New Endowment Plan (814) Details:
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 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.
New Endowment (Table No: 814) of LIC, is a basic Life Insurance plan which provides adequate life cover during policy’s term and on maturity, this plan provides a healthy amount which can be used to fulfill financial requirements like children's higher education and marriage. This plan may be recommended for everyone because of the following reasons.
- A sound combination of Life insurance and investment.
- Low premium in comparison other plans in this category.
- Eligible for bonus and Final Addition bonus declared by LIC.
- Comparatively Higher Bonus
- Double Accidental benefit with the rider.
- Tax saving on premium paid.
- Tax-Free maturity amount.
Calculate all Benefits for You:
| Age of Entry | 8 to 55 years |
|---|---|
| Premium Paying Mode | Yearly, Half Yearly, Quarterly, Monthly (ECS Only) |
| Policy Term | 12 to 35 Years |
| Basic Sum Assured | 100000 and above ( in multiples of 5000) |
| Policy Revival | within 2 year |
| Premium Mode Rebate | 2% on yearly, 1% on Half Yearly, Nil on Quarterly |
| Higher Sum Assured Rebate | 0% on 0 to 1,95,000 of Sum Assured 2% on 2,00,000 to 4,95,000 of Sum Assured 3% on 5,00,000 and above Sum Assured |
| Loan | After 3 years |
| Surrender | After 3 years of full premium payment [ Surrender Value Calculator] |
Benefits you get from LIC New Endowment Plan:
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the Nominee would be paid the “Sum Assured on Death” along with vested Bonuses as Death Benefit and the policy would be terminated.
The Sum Assured on Death has been defined as higher of Basic Sum Assured or 10 times the Annualized Premium subject to a minimum of 105% of all Premiums paid.
Maturity Benefit – On survival till the end of the Policy Tenure, the policyholder will Sum Assured + accrued Reversionary Bonus + Final Addition Bonus (if any) as Maturity Benefit and the policy will be terminated.
Income Tax Benefit – Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C. The Maturity Benefit is also tax-free under section 10(10)D subject to fulfillment of all terms and conditions.
Check the Bonus rates of LIC New Endowment Plan
LIC New Endowment Maturity:
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Sample illustration of the premium of LIC New Endowment Plan
Illustration across Age for same Sum Assured of Rs 1 Lakh:
The below illustration is for a healthy male (non-tobacco user) opting for a sum assured = Rs.1,00,000 and policy term = 25 years respectively.
Additional Features and Benefits of LIC New Endowment Plan
Riders – There is an Additional Rider available with this plan:
1) Accidental Death and Disability Benefit Rider
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 a 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
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.
Year-wise Death Claims
If death happens during the policy term ( Before 21 years ), Sum Assured + Bonus + Final Addition Bonus(FAB) will be paid to the nominee and it is indicated as Normal Life Cover. In case of accidental death, an additional amount equal to sum assured is also payable to the nominee, the calculation is indicated as Accidental Life Cover. Calculation of year-wise and age-wise death benefit according to accumulated bonus and FAB is illustrated below.
| Year | Age | Normal Life Cover(approx) | Accidental Life Cover(approx) |
|---|---|---|---|
| 2015 | 26 | 524000 | 1024000 |
| 2016 | 27 | 548000 | 1048000 |
| 2017 | 28 | 572000 | 1072000 |
| 2018 | 29 | 596000 | 1096000 |
| 2019 | 30 | 620000 | 1120000 |
| 2020 | 31 | 644000 | 1144000 |
| 2021 | 32 | 668000 | 1168000 |
| 2022 | 33 | 692000 | 1192000 |
| 2023 | 34 | 716000 | 1216000 |
| 2024 | 35 | 740000 | 1240000 |
| 2025 | 36 | 764000 | 1264000 |
| 2026 | 37 | 788000 | 1288000 |
| 2027 | 38 | 812000 | 1312000 |
| 2028 | 39 | 836000 | 1336000 |
| 2029 | 40 | 875000 | 1375000 |
| 2030 | 41 | 901500 | 1401500 |
| 2031 | 42 | 930500 | 1430500 |
| 2032 | 43 | 959500 | 1459500 |
| 2033 | 44 | 1001000 | 1501000 |
| 2034 | 45 | 1042500 | 1542500 |
| 2035 | 46 | 1091500 |
Compare New Endowment Plan from LIC with other Endowment Plans. Click here.
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