LIC’s New Endowment Plus Plan
LIC’s New Endowment Plus Plan is a simple unit linked insurance plan (ULIP), such that if the Life Insured dies within the policy tenure, the nominee would receive the Sum Assured or the Fund Value, whichever is higher, as Death Benefit. This plan has an additional rider where the coverage can be enhanced.
Being a vanilla ULIP, this plan helps the customer to have a policy without much complication such that his investment requirement is also fulfilled and coverage requirements are also met.
Key Features of LIC’s New Endowment Plus
- The higher of Sum Assured or Fund Value will be paid as Death Benefit
- There is an additional rider available in this plan: Accidental Death Benefit Rider
Benefits you get from LIC Endowment Plus
Death Benefit – In case of death of the Life Insured within the policy tenure, the nominee would get Sum Assured or Fund Value, whichever is higher subject to a minimum of 105% of the total premiums paid till date.
Maturity Benefit – On maturity, the Fund Value is paid to the policyholder as Maturity Benefit and the policy terminates
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
Eligibility conditions and other restrictions:
- Basic Sum Assured is equal to 10 times the Annualized Premium or 105% of Total Premiums paid, whichever is higher
- Policy Tenure: Minimum 10 years and a Maximum of 20 years
- Premium Paying Term: Same as Policy Tenure as chosen at the policy inception
- Age at Entry of the Life Insured – Minimum 90 Days (Completed) and Maximum 50 years (nearest birthday)
- Risk Age: 8 years (completed)
- Maturity Age of the Life Insured – Minimum 18 years (Completed) and Maximum 60 years (nearest birthday)
- Minimum Premium: Rs 20,000 in Yearly Mode, Rs 13,000 in Half Yearly Mode, Rs 8,000 in Quarterly Mode and Rs 3,000 in Monthly ECS Mode
Additional Features and Benefits:
Riders – There is an additional rider available in this policy
- Accidental Death Benefit rider
Investment Fund Options
There are 4 Investment Funds available
- Bond Fund
- Secured Fund
- Balanced Fund
- Growth Fund
You can switch between the four fund types for the entire Fund Value during the policy term subject to switching charges, if any. 4 switches in any policy year are free of cost and subsequently each switch will attract a fee of Rs 100 per switch.
- Partial withdrawals are allowed only after completion of 5 policy years or the life insured’s age is at least 18 years, whichever is later.
- Partial withdrawal will be allowed subject to at least 3 year’s premiums should remain in the Policyholder’s Fund Value or 50% of the Fund Value from the 6th to the 10th policy year and at least 25% of the Fund Value from the 11th Policy year onwards.
Loan – is not available in this plan.