LIC’s New Endowment Plus

Description

 

The LIC New Endowment Plus Plan offers a range of key attributes and benefits for policyholders. Here’s a summary of these features and advantages:

1. Investment Fund Options: With four investment fund options—Bond Fund, Secured Fund, Balanced Fund, and Growth Fund—the plan offers flexibility. The fund that best suits the policyholders’ risk tolerance and financial objectives might be selected.

2. Premium Payment Mode: Regular premium payments can be made by policyholders in a number of ways, such as quarterly, monthly, half-yearly, or annual installments. Premium payments are accepted on a monthly basis via Electronic Clearing Service (ECS).

3. Grace Period: The plan provides a thirty-day grace period for quarterly, half-yearly, and annual premium payments. The grace period for monthly premium payments is fifteen days. The policy is in effect throughout this time, and death benefits are paid out after any required deductions if the life guaranteed passes away during this period but before the premium due date.

4. Death Benefit: In the unfortunate event of the life assured’s demise, the nominee receives the higher of the following:

• 105% of total premiums paid
• 10 times the annualized premium
• Fund value

5. Maturity Benefit: If the life assured survives until the maturity date, they receive an amount equal to the unit fund value. This maturity benefit can be availed as either a lump sum payment or equal monthly installments.

6. Rider Benefit: If the policy has at least five years left on it, policyholders may choose to add LIC’s Linked Accidental Death Benefit Rider. Minors are not eligible to use this rider, however it is accessible until the maturity date. Once the life guaranteed reaches the age of 18, it becomes available.

7. Partial Withdrawals: After the fifth policy anniversary, policyholders can make partial withdrawals from the accumulated units, provided all outstanding premiums are paid. The basic or paid-up sum assured, whichever is applicable, will be reduced for two years following each partial withdrawal.

8. Switching Option: Policyholders can switch between different fund types during the policy term. Four free switches are allowed each policy year, and additional switches incur a fee of Rs. 100 per switch. The fund value is transferred to the newly chosen fund upon request.

9. Settlement Option: This option can be exercised one month before the maturity date. It allows policyholders to select the type and duration of installment payments (up to 5 years) for the maturity benefit.

10. Commencement of Risk: Depending on the age of the life insured upon entrance, different risks apply at different times. The risk begins one day before to the policy’s two-year anniversary or one day prior to the policy’s anniversary that falls on, precedes, or follows the eighth year, whichever comes first, for children under eight. The risk starts as soon as a person enters if they are eight years old or older.

 

Eligibility Conditions:

Date Of Launch	1.02.2020
Minimum Entry Age	90 Days (Completed)
Maximum Entry Age	50 Years (Nearest Birthday)
Minimum Maturity Age	18 Years (Completed)
Maximum Maturity Age	60 Years (Nearest Birthday)
Policy Term	10 To 20 Years
Basic Sum Assured	10 X Annualized Premium