LIC New Endowment Plan Table No. 814 is a non-linked policy plan. This is a basic life insurance plan. It is a savings plan which gives a healthy amount after the policy term as well as the Life assurance of the policyholder. This plan is also best for investment purposes. It is having a low premium in comparison with the other plan of LIC. There is a fixed amount as the premium that the policyholder will have to pay monthly, quarterly, half-yearly, or yearly.
Features of new LIC endowment plan.
- It is a basic life insurance plan.
- The policyholder will have to pay the premium to the entire policy term.
- If the insured person survives till the end of the policy term the maturity benefit will be given to the policyholder as the benefit of the policy and the policy will be terminated.
- If the insured person meets death within the policy term the nominee will get the death benefit and the policy will be terminated.
- There is also an option for additional coverage such as accidental coverage + disability coverage on the selection of additional premium.
Benefits provided under LIC’s new endowment plan.
Maturity benefit
In case of policyholder service throughout the period of the policy term, the basic sum assured + assured bonus will be provided to the policyholder and then the policy gets terminated.
Death benefit
In case of death of the policyholder within the policy term, the sum assured on death + assured bonus will be given to the nominee of the policyholder. Sum assured on death is as higher of the basic sum assured or it will be 10 times the annualized premium. This benefit would not be less than 105% of all the premiums paid till the date of death.
Accidental death and disability benefit
This is the additional benefit provided to the policyholder on the payment of extra additional premiums. In case of accidental death, the accident benefit sum will be paid + the death benefit of the basic plan. If any permanent disability occurs in the accident within 180 days after the accident the disability benefit will be provided in such conditions.
Tax benefit
There is a tax benefit as the premium paid under this scheme is fully tax-free and the maturity amount is also tax-free. According to the Indian Act, the amount paid as insurance premium is tax-free. One can file an income tax return on that amount.
Details and eligibility criteria for LIC new endowment plan
- The minimum age for entry of this endowment plan is 8 years and the maximum age for entry is 55 years.
- The maximum maturity age is 75 years.
- The minimum policy term that can be fixed is 12 years and the maximum policy term that can be fixed is 35 years.
- The premium can be paid annually, half-yearly, quarterly, or monthly. For annual and half year policy there is some discount provided by LIC
- The minimum sum that can be assured is Rupees 1 lakh and there is no upper limit of sum assured.
Premium Calculation Ready Reckoner:
Documents required for LIC new endowment plan
- Application form with full details filled in it.
- Accurate medical history of the person.
- Address proof and KYC document
- In some cases, there is a need for medical examination based on the sum assured and the age of the person.
Questions and answers related to LIC new endowment plan
1. What will happen when the policy premium is not paid within time?
Ans. There is a provision of 30 days as the grace period for the late payment. If the premium has not been paid within 30 days, the policy will lapse but it can be revised under the period of 2 years from the date of lapse of the policy.
2. What can be done if the buyer does not pleased with the coverage and the terms and condition of the LIC single premium endowment plan after buying the policy?
Ans. LIC provides a free look period for LIC single premium endowment plan for canceling the policy within 15 days after the receipt of the policy document in this period one can completely read the policy terms and condition and understand it after that within 15 days you can go for cancellation or keep it with yourself if you are pleased with the coverage and terms and condition.
