LIC New Endowment Plus Plan
LIC New Endowment Plus Plan – Table No. 835
LIC’s New Endowment Plus Plan is a unit-linked insurance plan popularly called ULIP. The New Endowment Plus is a blend of insurance and investment. In this plan, a premium needs to be paid for the entire policy term. You can invest your money in a choice of 4 funds as per your risk appetite. The Fund Value is paid on policy maturity as Maturity Benefit to the policyholder.
Launch Date | 19th August, 2015 |
Plan Details | Table No. 835 |
Policy Type | ULIP |
Key Features
Fund Name | Risk - Return | Investments |
Bond Fund | Low Risk | At least 60% in Government Guaranteed Securities & Corporate Debt. Rest in other money market instruments and listed shares |
Secured Fund | Low to Medium Risk - Steady Income | At least 45% in Government Guaranteed Securities & Corporate Debt. Rest in other money market instruments and listed shares |
Balanced Fund | Medium Risk - Balanced Income & Growth | At least 30% in Government Guaranteed Securities & Corporate Debt. Rest in other money market instruments and listed shares |
Growth Fund | High Risk - Long term Capital Growth | At least 20% in Government Guaranteed Securities & Corporate Debt. Rest in other money market instruments and listed shares |
The Daily NAVs of these funds are mentioned in the links at the end. You can track how your funds are performing on a daily basis.
There are 4 free switches allowed in each policy year beyond which there is a charge of Rs. 100 applicable to each switch. Switching is basically moving your investments from one fund to another. In case you want to change the Fund Options you had earlier decided, you can do the Switch
Partial withdrawal is allowed after the 5th policy anniversary. Partial withdrawal shall be allowed subject to maintaining a minimum balance of:
- From 6th to 10th policy year: 3 annualized premiums or 50% of Policyholders' Fund Value, whichever is higher
- From 11th to 20th policy year: 3 annualized premiums or 25% of Policyholders' Fund Value, whichever is higher
Accidental Death Benefit Rider is available in this plan on payment of extra premiums.
Top Ups are not allowed in this plan.
if the policyholder is not convinced with the terms and conditions of the policy, s/he can cancel the policy within 15 days from the receipt of the policy document.
In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date.
This plan does not acquire any surrender value at any point of time.
Benefits
If the Life Insured dies, before the Risk commencement date: the Fund Value is paid to the nominee.
If the Life Insured dies, after the Risk commencement date: an amount equal to the higher of the following is paid out:
- 10 times the Annualized Premium
- 105% of the total premiums paid
- Fund Value
- In case the age of the policyholder is less than 8 years at the time of taking the policy - The risk cover benefits will start one day before the completion of 2 years from the policy start date OR one day before the policy anniversary after the policyholder becomes 8 years old, whichever is earlier.
- In case the age of the policyholder is 8 years or more - The risk cover starts immediately.
For better understanding, we have used some examples for the Risk Commencement Date in LIC New Endowment Plus Plan.
When the policy matures, the Fund Value is paid to the policyholder as Maturity Benefit.
How it works
The premium paid by you is invested into the 4 Funds of your choice. The details of the Fund Options are mentioned later in this page. You will receive Units of the Funds. The value of funds will be determined by the NAV of funds which keeps changing on a daily basis depending on how they are invested. The Units x NAV of the funds you hold gives you the Fund Value of your investments on a daily basis. There are a list of charges which are applicable in this plan - details will be explained in the “Charges” section later in this article.
Eligibility
Minimum | Maximum | |
Policy Term | 10 years | 20 years |
Premium Payment Term | Same as the policy term | |
Age of Entry | 90 days (completed) |
50 years (nearest birthday) |
Age at Maturity | 18 years (completed) |
50 years (nearest birthday) |
Premium Payment Modes | Yearly, Half-yearly, Quarterly & Monthly | |
Premiums | Yearly - Rs. 20,000 Half-yearly - Rs. 13,000 Quarterly - Rs. 8,000 Monthly - Rs. 3,000 |
No limit |
FAQs
The policyholder has the following options:
- Pay the due premium(s) within the 30 days from the due date - benefits under the policy shall continue
- Revive the policy at any time within a revival period of two years from the date of discontinuance - Fund Value after deducting the Discontinuance Charge, if any, shall be transferred to the Discontinued Policy Fund.
- Complete withdrawal from the policy without any risk cover: The fund value will be paid after 5 years.
The policyholder has the following options:
- Pay the due premium(s) within the 30 days from the due date - benefits under the policy shall continue.
- Revive the policy at any time within a period of two years from the date of discontinuance or up to the date of maturity, whichever is earlier
- Complete withdrawal from the policy without any risk cover - the policy shall be terminated on the date of intimation for complete withdrawal and the balance amount in the Policyholder's Fund shall be refunded.
- Convert the policy into paid-up policy - Policy will be treated as paid-up policy and no premiums shall be payable thereafter.
If the policy is surrendered on or before the expiry of the 5 years' lock-in period, then the Policyholder's Fund Value after deducting the Discontinuance Charges, if any, shall be transferred to the Discontinued Policy Fund and the amount shall be paid after 5 years. If the policy is surrendered after the expiry of 5 years' lock-in-period, then the fund value is paid immediately.
There is no loan available under this plan.