LIC's New Endowment Plan: Salient features

Published: Friday, January 3, 2014, 14:43 [IST]

LIC's New Endowment Plan is a with profits non-linked protection and savings plan. The plan offers financial security in case of an unfortunate event of death of the insured during the policy term with the provision for maturity benefits in case of survival of the insured.

Salient features of the policy:

Minimum and Maximum entry age: Minimum age to enroll in the scheme is 8 years while the maximum age to invest in the plan is 55 years.

Policy term: New Endowment Plan by LIC can be chosen for any term between 12 and 35 years.

Maturity Benefit: On completion of the policy term, the New Endowment Plan will pay out basic sum assured (SA) with vested simple reversionary bonus along with final additional bonus (if any).

Death Benefit: In the event of death of the insured, Sum Assured on Death together with vested simple bonus and final additional bonus, if any, shall be payable. Sum Assured on Death shall be higher than basic sum assured value or ten times the annualized premium. The death benefit amount shall not be lower than 105% of the total premiums paid until the death. For the purpose of calculating death benefit amount, extra premiums, premium in respect of riders and taxes will not be accounted for.

Loan Facility: The new plan also offers liquidity through the extended loan facility.
Riders: New Endowment Plan comes with disability benefit and accidental death riders.

About the Insurer: LIC with its headquarters in Mumbai is the largest state-owned insurance company in India. Among all the players in the industry, LIC has emerged as the most customer-friendly insurance company. Further, in terms of claims that is the most important aspect concerning insurance, IRDA reported better death claim settlement by LIC in 2012-2013 in comparison to private insurance players.

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Story first published: Friday, January 3, 2014, 14:43 [IST]