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LIC New Endowment Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

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LIC New Endowment Plan - Table no 814

Click here to read the new version of LIC New Endowment Plan (914) - UIN 512N277V02

LIC New Endowment Plan is a non-linked life insurance policy which offers guaranteed returns and bonus. The policy can be availed for duration of 12 to 35 years. Policy can be taken for anyone between 8 to 55 years of age and can be continued till 75 years of age.

In this plan, premium needs to be paid for the entire policy tenure. The Sum Assured along with vested Simple Reversionary Bonus + Final Addition Bonus would be paid to the Life Insured on survival till the end of the Policy Tenure as Maturity Benefit.

Key Features of LIC New Endowment Plan

  • Plan with guaranteed returns and bonus
  • Simple Reversionary Bonus is payable on maturity or earlier death
  • Large Sum Assured Rebate is available
  • LIC’s Accidental Death and Disability Benefit Rider can be taken




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 fulfilment of all terms and conditions.

Check the Bonus rates of LIC New Endowment Plan

LIC New Endowment Maturity Calculator

You can use this to get a fairly accurate estimate of the Maturity Value of LIC New Endowment plan of yours. The amount of LIC New Endowment Plan Returns are totally tax free.

LIC New Endowment Plan Maturity Value Calculator
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Eligibility conditions and other restrictions in LIC New Endowment Plan

  Minimum Maximum
Sum Assured (in Rs.) 1,00,000, in multiples of 5,000 No Limit
Policy Term (in years) 12 35
Premium Payment Term (in years) Equal to Policy Term
Entry Age of Life Insured (in years) 8 55
Age at Maturity(in years) - 75
Payment modes Yearly, Half Yearly, Quarterly or Monthly


Sample illustration of 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.

LIC New Endowment Plan 

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


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 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


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.

Read Review of  LIC New Endowment in Marathi >  |  LIC New Endowment in Hindi >


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