LIC's New Endowment Plan (714)

How the plan works

LIC's New Endowment Plan offers protection and savings in one policy. You choose a Basic Sum Assured (minimum ₹2,00,000, no upper limit) and a policy term between 12 and 35 years, and pay premiums for the whole term. The policy earns Simple Reversionary Bonuses declared each year based on LIC's experience, and a Final Additional Bonus may also be declared when it results in a death or maturity claim. Risk cover starts immediately once the proposal is accepted. If the policy is on a minor's life, it automatically vests in the child on the policy anniversary on or after their 18th birthday.

The Basic Sum Assured must be chosen in these steps:

Sample annual premiums (excluding taxes) for a Basic Sum Assured of ₹2 lakh, standard life:

Death benefit

If the life assured dies during the policy term while the policy is in-force, the nominee receives the Sum Assured on Death plus vested Simple Reversionary Bonuses and Final Additional Bonus, if any. Sum Assured on Death is the higher of the Basic Sum Assured or 7 times the annualised premium. The death benefit will not be less than 105% of total premiums paid up to the date of death.

Maturity benefit

If the life assured survives to the end of the term with the policy in-force, LIC pays the Sum Assured on Maturity (equal to the Basic Sum Assured) plus vested Simple Reversionary Bonuses and Final Additional Bonus, if any. Bonus rates are declared by LIC based on its experience and are not fixed in advance; once declared, reversionary bonuses become part of the guaranteed benefits.

Optional riders

Available for extra premium (only one of the two accident riders can be chosen):

• LIC's Accidental Death and Disability Benefit Rider (UIN: 512B209V02) - for minors, from the policy anniversary after age 18
• LIC's Accident Benefit Rider (UIN: 512B203V03) - for minors, from the policy anniversary after age 18
• LIC's New Term Assurance Rider (UIN: 512B210V02) - at inception only
• LIC's Premium Waiver Benefit Rider (UIN: 512B204V04) - on the proposer's life, for policies where the life assured is a minor
• LIC's Critical Illness Health Rider (UIN: 512B227V01) - at inception only; Option 1 covers 15 major critical illnesses, Option 2 covers 40 including Assisted Living Benefit

Loan, surrender & revival

• Loan: available after the first policy year once one full year's premium is paid, within the surrender value. Limit: 50% of surrender value (in-force) or 40% (paid-up) before two full years' premiums; 75% (in-force) or 65% (paid-up) after two full years' premiums. For loans sanctioned from 1 May 2024 to 30 April 2025, interest was 9.5% p.a. compounding half-yearly.
• Surrender: possible after the first policy year once one full year's premium is paid. Guaranteed Surrender Value is acquired after at least two full years' premiums; you receive the higher of Guaranteed and Special Surrender Value.
• Paid-up: if at least one full year's premium is paid and premiums stop, the policy continues with proportionately reduced benefits and keeps bonuses already vested, but stops earning new bonuses.
• Revival: a lapsed policy can be revived within 5 consecutive years from the first unpaid premium and before maturity, by paying arrears with interest (9.50% p.a. compounding half-yearly for 1 May 2024 to 30 April 2025), subject to continued insurability.

Other key terms

• Grace period: 30 days for yearly, half-yearly and quarterly premiums; 15 days for monthly premiums.
• Free-look period: 30 days from receiving the policy document.
• Settlement option: all or part of the maturity amount, and also the death benefit, can be received in instalments over 5, 10 or 15 years. Minimum instalments: ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly. The maturity settlement option must be chosen at least 3 months before maturity.
• Mode rebate: 2% of tabular premium for yearly mode, 1% for half-yearly; nil for quarterly, monthly and salary deduction.
• High Sum Assured Rebate: nil for ₹2,00,000 to below ₹5,00,000; 2.50 per thousand of Basic Sum Assured for ₹5,00,000 to below ₹10,00,000; 4.00 per thousand for ₹10,00,000 and above.
• Suicide exclusion: within 12 months of start of risk, 80% of premiums paid is payable (policy in-force); within 12 months of revival, higher of 80% of premiums paid or surrender value.