LIC New Endowment Plus Plan: Key features, minimum investment, benefits and how to buy policy

LIC New Endowment Plus (Table No. 935) is a unit-linked, regular premium, and non-participating insurance plan that offers the policyholder the dual benefit of savings and insurance options. This plan was introduced to provide a good combination of security and long-term savings to the policyholder.

Under this plan, the policyholder has the option to choose among the four investment funds, namely, the bond fund, Secured Fund, Balanced Fund, and Growth Fund.

The old Endowment Plus plan (Table No 835), which was launched in 2015, was discontinued by LIC on February 1, 2020, and the new Endowment Plus Plan (Table No 935) was introduced.

LIC New Endowment Plus Plan: Premium-Paying Term and Grace Period

The policyholder can pay premiums regularly at yearly, half-yearly, quarterly, or monthly intervals only through online payment mode over the life of the policy.

A grace period of 30 days will be available for payment of yearly, half-yearly, or quarterly premiums, whereas 15 days will be allowed for monthly premiums, in case the policyholder misses the due date.

LIC New Endowment Plus Plan: Eligibility, age limit, sum assured

The minimum age for purchasing LIC new Endowment Plus Plan is 90 days while the maximum entry age is 50 years. The minimum maturity age is 18 years and the maximum age limit for the maturity of the policy is 60 years.

The policyholder can choose from a 10 to 20 years policy term. The premium paying term is the same as the policy term. The minimum premium amount ranges between Rs 3,000 to Rs 20,000 depending on the premium paying mode.

The Basic Sum Assured value is 10 times of the annualised premium while there is no maximum limit for the sum assured value.

LIC New Endowment Plus Plan: Death Benefit and Maturity Benefit

The benefits are payable only for an in-force policy, where all due premiums have been paid. 

Death benefit: In the event that the policyholder dies prior to the risk commencement date, the nominee is paid the total fund value. On the other hand, if the policyholder dies after the risk commencement date, the higher of the below-mentioned amounts is paid out:

• 105 percent of the total premium paid
• 10 times the annualised premium
• Total Fund Value

Maturity benefit: If the policyholder survives the maturity period of the policy, he or she will be paid an amount equal to the unit fund value.

LIC's New Endowment Plus Plan: Optional Benefits

Rider Benefit: If the policyholder has a minimum remaining term of 5 years, then the linked Accidental Death Benefit Rider may be selected. This rider is valid only until the maturity date.

Partial Withdrawal: After 5 years of coverage, the policyholder may withdraw a part of the policy only if all the unpaid premiums have been paid.

Switching: During the policy period, the policyholder can change between several fund types. The cash was transferred once to the chosen new fund. Four free swaps are permitted every year. However, Rs 100 will be charged for any additional swaps beyond the four chances.

Settlement option: The policyholder has the opportunity to select this option one month prior to the maturity date.

Commencement of Risk: If the policyholder’s age while buying the policy is less than 8 years, the risk will begin either one day before the policy’s two-year anniversary or one day before the policy’s anniversary preceding the completion of eight years, depending on what occurs first.

In addition to the death certificate, any cost other than the Fund Management Charges must be added back to the Fund Value that was accessible at that time. This will not be applicable if the life assured’s age is less than eight years.