MODIFIED VERSION OF LIC’s NEW ENDOWMENT PLAN (Plan No. 914)
The modifications are as under:
i) Definition of “Sum Assured on Death” has been modified from “higher of Basic
Sum Assured or 10 times of annualised premium” to “higher of Basic Sum Assured or 7 times of annualised premium”.
ii) In addition to the existing Riders available under the plan, the following additional
Riders have been allowed:
a) LIC’s Accident Benefit Rider (UIN:512B203V03)
b) LIC’s Premium Waiver Benefit Rider (UIN:512B204V03)
iii) The following Options have also been allowed:
a) Settlement Option for Maturity Benefit
b) Option to take Death Benefit in instalments
iv) Revival period has been extended from 2 years to 5 years.
v) Policy shall now acquire Surrender Value if premiums are paid for at least two consecutive years as against earlier condition of three years. Accordingly, the policy shall become paid-up and policy loan shall also be available after payment of two full years’ premiums.
vi) Guaranteed Surrender Value factors applicable to “total premiums paid” have been modified.
vii) Special Surrender Value factors have been annexed to this Circular.
viii) Quantum of policy loan as a percentage of Surrender Value has been modified.
ix) Grace Period has been modified from “1 calendar month but not less than 30 days to “30 days” for yearly/ half-yearly/ quarterly mode of premium payment.
x) The relaxation of claim payment under discontinued policy shall not be applicable
LIC’s New Endowment Plan is a participating non-linked plan which offers an attractive combination of protection and saving features. This combination provides financial support for the family of the deceased policyholder any time before maturity and good lump sum amount at the time of maturity for the surviving policyholders.
• Minimum Basic Sum Assured: Rs. 1,00,000/-
• Maximum Basic Sum Assured: No Limit
• Minimum Policy Term: 12 years
• Maximum Policy Term: 35 years
• Minimum Entry Age: 8 years (completed)
• Maximum Entry Age: 55 years (nearer birthday)
• Maximum Age at Maturity for Life Assured: 75 years
• Mode of Premium Payment: Yearly, Half-yearly, Quarterly & Monthly
• Accidental Death & Disability Benefit Rider is available on payment of additional premium.
LIC’s New Endowment Benefit Details
• On Death: “Sum Assured + Vested Bonus + FAB if any.”
• Where ‘S.A. on Death’ is defined as the higher of
i. 7 times of Annualised Premium, OR
ii. 105%of all Premiums paid as on death
• On Survival : On survival Basic Sum Assured + Vested Bonus + FAB if any.
• Surrendered Value: The Policy can be surrendered at any time during the policy term provided at least 2 full years premiums have been paid.
• Loan : Loan Facility is available under this plan, after payment of premiums for at least 2 full years.
• Income Tax Benefit: Premium paid under this plan is eligible for TAX rebate under section 80c.
• Maturity under this plan is free under sec 10(10D).