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  • LIC New Endowment Plus Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    LIC's New Endowment Plus Plan is a unit linked, non-participating endowment assurance plan offered by Life Insurance Corporation of India. This ULIP offers life cover, optimise returns, partial withdrawals, and tax benefits. You can choose from 4 different fund options to invest in.

    Eligibility - Who is the LIC's New Endowment Plus Plan for?

    Entry age Minimum 90 days to maximum 50 years
    Maturity age Minimum 18 to maximum 60 years

    Sum Assured and Premium Range - What you get and what it costs?

    Policy Term 10 to 25 years
    Premium Payment Term Same as policy term
    Premium Paying Mode Monthly, quarterly, half-yearly, yearly
    Premium  
    Monthly payment mode Minimum premium Maximum premium
    Yearly Rs.20,000 No limit
    Half-yearly Rs.13,000 No limit
    Quarterly Rs.8,000 No limit
    Monthly Rs.3,000 No limit

    Premiums may vary depending upon factors like age, location, term of the plan and prevailing GST.

    Plan Coverage - What the LIC's New Endowment Plus Plan covers?

    This is how LIC's New Endowment Plus Plan works:

    • Death benefit: Upon death of the life assured before the date of commencement of risk, the fund value is payable as death benefit. Upon death of the life assured after the date of commencement of risk, the fund value or the basic sum assured which is higher of 10 times the annualised premium or 105% of the total premiums paid is payable.
    • Maturity benefit: Upon reaching policy maturity, you will receive the fund value as maturity benefit.
    • Reduced paid-up benefits: Upon the death of the life assured, higher of paid-up sum assured or fund value will be paid. Upon policy surrender or maturity, fund value as on date of surrender or maturity will be paid.
    • Switching funds: You have the option to switch funds any number of times during the policy term for a switching charge.
    • Partial withdrawal: From the 6th policy year, partial withdrawal can be made to meet any financial emergency. The minimum withdrawal amount is 3 times the annualised premiums or 25-50% of the fund value, whichever is higher.
    • Fund options: You can choose from 4 fund options to for your one-time investment:
      Fund name Asset category Risk profile
      Bond Fund Government Guaranteed Securities or Corporate Debt - 60-100%, Equity Shares - 0%, and Money Market Instruments - 0-40% Low risk
      Secured Fund Government Guaranteed Securities or Corporate Debt - 40-100%, Equity Shares - 15-55%, and Money Market Instruments - 0-40% Steady income, low to medium risk
      Balanced Fund Government Guaranteed Securities or Corporate Debt - 30-100%, Equity Shares - 30-70%, and Money Market Instruments - 0-40% Balanced income and growth, medium risk
      Growth Fund Government Guaranteed Securities or Corporate Debt - 20-100%, Equity Shares - 40-80%, and Money Market Instruments - 0-40% Long-term capital growth, high risk
    • Settlement option: You can opt to receive the maturity benefit in installments over a period of 5 years without insurance cover during that term.

    Riders or add-on plans – Additional coverage under LIC's New Endowment Plus Plan

    Get enhanced protection in the event of an accidental death of the life assured during the policy term by attaching LIC's Linked Accidental Death Benefit Rider to your New Endowment Plus Plan.

    Exclusions - What the LIC's New Endowment Plus Plan doesn’t cover?

    The LIC's New Endowment Plus Plan doesn't cover death by suicide of the life insured. In the case of death by suicide within 1 year from the date of policy inception or revival, fund value of the policy till the date of death is payable to the beneficiary.

    Other Key Features – Free-look Period, Surrender Values, Grace Period etc.

    • Free-look period: From the date of receipt of the policy document, you have 15 days to review the terms and conditions of the policy. The policy can be returned if there are any objections and the company will refund the fund value on the date of cancellation plus the unallocated premium and any charges for cancellation of units minus risk charges.
    • Grace period: You are given a period of 15 days for monthly payment mode and 30 days for all other modes within which to pay the due premiums or else the policy will lapse.
    • Surrender value: If the policy is surrendered within the first 5 policy years’ lock-in period, the surrender value which is the fund value minus discontinuance charge, will be transferred to the Discontinued Policy Fund. If the policy is surrendered after the lock-in period, the fund value is payable.
    • Revival: The policy can be revived within 2 years from the date of the first unpaid premium, provided you submit a written request, proof of insurability, and pay all due premiums.
    • Discontinuance of premium: If the policy is discontinued within the lock-in-period, you can choose to pay the premiums within the notice period of 30 days, revive the policy or complete withdrawal from the policy without risk cover. If the policy is discontinued after the lock-in-period, you can choose to pay the premiums within the notice period of 30 days, revive the policy, complete withdrawal from the policy without risk cover or convert the policy into paid-up policy.
    • Charges applicable for this ULIP:
      • Fund management charge is 1.35% p.a. for all funds and 0.50% p.a. for Discontinued Policy fund.
      • Policy administration charge is as follows:
        Policy year Policy Administration Charge
        1st year Rs.200
        2nd year Rs.140
        3rd year Rs.145
        4th year Rs.150
        5th year Rs.155
        6th year Rs.100
        Thereafter 3% p.a.
      • Discontinuance Charge is levied on the fund value upon the surrender or discontinuance of the policy.
      • Switching charge is Rs.200 per switch after the first 6 free switches.
      • Partial withdrawal charge is Rs.200 per request after the first 4 free withdrawals.
      • Miscellaneous charge is Rs.100 per alteration request.
      • Mortality charges are levied on a monthly basis based on the age of the life assured and the sum at risk.
      • Accident Benefit charge is levied if you have opted for the Accident Benefit Rider.
      • Premium allocation charge is as follows:
    Premium Premium Allocation Charge
    1st year 7.50%
    2nd to 5th year 5%
    Thereafter 3%

    Tax Benefits – How you can save with the LIC's New Endowment Plus Plan?

    Under the LIC's New Endowment Plus Plan, you can get tax benefits on:

    • Premiums paid under Section 80C of the Income Tax Act, 1961.
    • Maturity proceeds under Section 10(10D) of the Income Tax Act, 1961.

    Other Benefits – How you can save with the LIC's New Endowment Plus Plan?

    There are several other benefits of purchasing endowment assurance plans from Life Insurance Corporation of India such as:

    • Online application: You can apply for your chosen life insurance plan online through the company website.
    • Premium payment: You can renew your policy instantly by making online premium payments through the Online Payment Gateway initiative by LIC.
    • Premium calculator: With the online premium calculator, you can find out how much premium you need to pay for your chosen plan and how much life cover you require.
    • Customer service: For insurance policy related queries, customers can SMS or call the LIC helpline number. The company has a dedicated grievance redressal cell to resolve the complaints and queries of its customers.

    Why you should buy the LIC's New Endowment Plus Plan from LIC of India?

    With LIC's New Endowment Plus Plan, you can get life cover as well as long-term savings. Life Insurance Corporation of India has been successfully operating for almost 6 decades in the insurance industry catering to over 250 million customers across India. From individual and group term insurance plans to health and pension plans, LIC offers a wide range of insurance solutions to meet the varying needs of its customers. It also won India's Most Trusted Brand 2015 and the Indian Insurance Award 2015.