New Endowment Plus, New ULIP plan of LIC of India

New Endowment Plus (Plan No. 835) is the new ULIP plan which is going to be launched soon by LIC, As mentioned by LIC of India’s Chairman Mr. S K Roy in his interview to Business Standard published on 01/07/2015. This is the first ULIP plan by LIC after closure of all older products on 31/12/2013. Earlier LIC had one ULIP plan with same name Endowment Plus, Plan No. 802. New plan will be having four funds namely Bond Fund, Secured Fund, Balanced Fund and Growth Fund. Risk cover in this policy will be 10 times of the annulised premium. This plan will be available for sale from 19/08/2015.

LIC’s New Endowment Plus is a unit linked assurance plan, which offers investment-cum-insurance during the term of the policy. The Policyholder can choose the amount of premium he/she desires to pay, depending on which Policyholder will get the equivalent level of cover. Each premium paid by the Policyholder shall be subject to Premium Allocation charge. The allocated premium will be utilized to purchase units as per the selected fund type. The Policyholder’s Fund Value will be subject to deduction of charges as per policy conditions. Units will be allotted and cancelled based on the Net Asset Value (NAV) of the respective fund applicable to the date of allotment / cancellation. There is no Bid-Offer spread (both the Bid price and Offer price of units will be equal to NAV). The NAV will be computed on daily basis and will be based on the investment performance and Fund Management Charges (FMC) of each fund type.

Investment Fund Types:

Four fund types are available in this policy , which are mentioned below

Funds types in New Endowment Plus

Funds types in New Endowment Plus

Other Conditions of New Endowment Plus (Plan No. 835):

  1. Premium allocation charges: First Year: 7.5%, 2nd to 5th year: 5% and 6 year onward 3% of the premium paid.
  2. Mortality Charges: Will Be duducted from NAV on monthly basis as per the age of the policy holder.
  3. Accidental Benefit rider charge: Will also be deducted fromt he cancelling equivalent amount of NAV on monthly basis
  4. Policy administration charges: Will be deducated on first month of each policy year.
  5. Fund Management Charges: .70% per annum of he premium paid.
  6. Switching of Funds: 4 switching free in a year there after Rs. 100 will be charged per switch/
  7. Discontinuation charges: If policy is surrendered before the completion of the 5th year then policy holder will have to pay certain charges which will be deducted from NAV.
  8. Lock in Period: This policy have the lock in period of 5 years.

Policy Benefits: 

Benefits payable on death: On death of the Life Assured before the stipulated Date of Maturity provided policy is inforce, then,

On death before the Date of Commencement of Risk:

An amount equal to the Policyholder’s Fund Value shall be payable.

On death after the Date of Commencement of Risk:

An amount equal to the higher of Basic Sum Assured or Policyholder’s Fund Value shall be payable. Where, Basic Sum Assured is (10 * Annualized Premium) or (105% of the total premiums paid), whichever is higher.

Benefits payable on maturity:

On Life Assured surviving the stipulated date of maturity, an amount equal to the Policyholder’s Fund Value is payable. The maturity benefit can be payable either as an lumpsum amount on maturity or in equal instalments if settlement option is opted.

Eligibility Conditions for New Endowment Plus

Basic Sum Assured(10* Annualized Premium) or (105% of the total premiums paid), whichever is higher.
Minimum PremiumYearly                           Rs. 20,000
Half-Yearly                    Rs. 13,000
Quarterly                       Rs. 8,000
Monthly (ECS)              Rs. 3,000
Maximum PremiumNo limit (Annualized Premiums shall be payable in multiple of Rs. 1,000 for all modes other than ECS monthly. For monthly (ECS), the premium shall be in multiples of Rs. 250/-)
Minimum Entry Age 90 Days (completed)
Maximum Entry Age 50 years (nearest birthday)
Policy Term 60 years (nearest birthday)

“New endowment plus is good for those who want a long term investment and want a better growth than conventional plans, If switching options are used carefully and timely then any ULIP plan can give a good return to policy holder.”

3 Comments on "New Endowment Plus, New ULIP plan of LIC of India"

  1. sir goodevening

    It seems good scheme but for senior citizens with completed years60 are not benefitted rather as retired till recently and not dragging the interest of that oersons as they may like to invest in safe with moderate returns. But the launched scheme id for 50 years only. However please advise how for the said scheme is useful if I go in for my children who are aged 29,26 respectively.

    • This plan is good for your children if taken for the full term ie 20 years. Since it provides 10 times insurance of the annual premium, so not only it will provide risk cover but it will also help in wealth creation as return from capital market is good when invested for long term. Policy is also designed according to the current income tax regulations so rebate can be taken under section 80(C) by your children and maturity will be tax free under section 10(10)(D).

  2. ritikashah11998@gmail.com' Ritika shah | May 9, 2016 at 6:54 pm |

    Thank you for sharing such great information. It is informative, can you help me in finding out more detail.

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