LIC’s New Endowment Plus Charges : LIC’s New Endowment Plus plan is a vanilla Unit Linked Insurance Plan with a wide investment variety to suit the needs of the modern investors.
The various types of charges that are being charged to the policyholders are summarized below:
Premium Allocation Charge – This charge is deducted from the Premium Paid by you
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.
Where K is mentioned as
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.
Mortality Charge — is charged as per the Sum at Risk
Switching Charge—the first 4 switches in this plan are free and subsequently a charge of Rs 100 would be levied for any additional switch.
Partial Withdrawal Charge – A flat charge of Rs 100 is levied for every partial withdrawal in this plan after the first 5 policy years
Accidental Benefit Rider Charge – Rs 0.4 per thousand of Accidental Death Benefit rider charge is charged to the policyholder as additional premium
Thus, a quick summary of the charges for LIC’s New Endowment Plus plan gives a vivid description of the plan and the associated costs!