LIC New Endowment Plan (Plan 914)
The LIC New Endowment Plan (Plan 914) is a non-liked, participant based life insurance plan that gives both safety and savings. It helps your family with money if something happens to you during the policy term. It's a good choice for people who want to save money regularly and also stay protected.
This plan gives money on death or when the policy ends, along with extra bonus amounts. If you ever need emergency money, you can also take a loan against this policy. You can add extra safety by choosing LIC's Accidental Death and Disability Benefit Rider. Many people like this plan because of its useful features and benefits.
Eligibility Criteria of LIC New Endowment Plan
| Parameters | Criteria |
|---|---|
| Min & Max Entry Age | Min: 8 YearsMax: 55 Years |
| Min & Max Sum Insured | Min: 1,00,000Max: No Limit |
| Min & Max Maturity Age | Min: 20 CompletedMax: 75 years |
| Policy Term (PT) | 12 to 35 years |
| Premium Paying Term (PPT) | Equal to the PolicyTerm |
Benefits of the LIC New Endowment Plan
The LIC New Endowment Plan gives you both savings and life protection. It helps you save money for the future and also keeps your family safe if something happens to you. Here are the main benefits of this plan:
- 01
Maturity Benefit
If you live through the full policy term, you will get the sum assured (the amount you chose at the start) plus any bonuses. After this, the policy ends.
- 02
Death Benefit
If you pass away during the policy term, your family will get the death benefit. This includes the sum assured on death plus bonuses. The sum assured on death will be the higher of:The basic sum assured7 times the yearly premiumMinimum of 105% of total premiums paid till the date of death
- 03
Bonus Benefit
This plan shares profits from LIC. You may get extra amounts called Simple Reversionary Bonus and Final Additional Bonus. These are added to your policy over time, either at maturity or on death, if you've paid premiums for a few years.
- 04
Extra Protection with Riders
You can also add extra safety to your policy with optional riders. These include:Accidental Death and Disability Benefit RiderAccident Benefit RiderNew Term Assurance RiderPremium Waiver Benefit RiderThese riders help you and your family during tough times like accidents, illness, or loss of income.
- 05
Option to Take Death Benefit in Installments
Instead of getting all the money at once after the policyholder's death, the family can choose to receive the money in small parts over 5, 10, or 15 years. These payments can be made every year, six months, three months, or every month based on what they choose. There is a minimum amount that will be paid in each installment.
How does the New Endowment Plan Work?
Let's understand how LIC's New Endowment Plan works with an example Mr. Sharma is 25 years old and wants to buy LIC's New Endowment Plan with a coverage of Rs. 25 lakhs. He will pay premiums for 35 years. Here's what will happen:
Mr. Sharma is 25 years old and wants to buy LIC's New Endowment Plan with a coverage of Rs. 25 lakhs. He will pay premiums for 35 years. Here's what will happen:
Premium
Mode Base Premium 1st Year 2nd Year Yearly RS. 62448 RS. 65258 RS. 63853 - If
Mr. Patel Survives the Policy Term
At the end of 35 years, if Mr. Patel is still alive, he will receive a lump sum payment of Rs. 63,50,000. This includes the original sum assured (Rs. 25 lakhs), a simple bonus, and a final additional bonus.
Maturity Details
Sum Assured Bonus (Estimated) Final Addition Bonus (estimated) Total (estimated) RS. 25,00,000 RS. 38,50,000 RS. 0 RS. 63,50,000 - If
Mr. Patel Dies During the Policy Term
If Mr. Patel passes away before the policy term ends, his nominee will receive a lump sum amount as the death benefit. This amount will be higher than the original sum assured and will include any earned bonuses up to the time of his death.
Additional Rider Available in LIC New Endowment Plan
Here are some add-ons available in this amazing LIC plan:
LIC's Accidental Death and Disability Benefit Rider
You can add this rider if:You've been paying premiums for at least 5 years.The person covered by the plan is under 65 years old.This rider offers:Coverage until the person is 70 years old or the end of the policy term.If the person dies in an accident, a lump sum is paid.If the person becomes disabled due to an accident within 180 days, they receive monthly payments for 10 years, and future premiums are waived.This rider is available for minors after they turn 18, if requested.
LIC's Accident Benefit Rider
This rider can be added at any time if:The person covered by the policy is under 65.There are at least 5 years left in the policy term.This rider offers:A lump sum payment if the person dies in an accident.It does not cover disabilities caused by an accident.Note: You can only choose one between the Accidental Death and Disability Benefit Rider and the Accident Benefit Rider.
LIC's New Term Assurance Rider
This rider must be chosen when the policy is first bought. If selected, the rider covers the entire policy term. If the person covered by the plan dies during the policy term, the sum assured is paid out.
LIC's Premium Waiver Benefit Rider
You can add this rider if:At least 5 years of premiums have been paid.The person covered by the plan is a minor.This rider offers:If the person who took out the policy dies, future premiums are waived.This rider can't be added if the proposer's age plus the rider term is more than 70 years.
How to Buy LIC New Endowment Plan
Buying the LIC New Endowment Plan online is simple and can be done from the comfort of your home. Just follow these easy steps:
Visit the LIC Website
Go to the official LIC website by typing www.licindia.in in your browser.
Click on “Buy Policies Online”
On the homepage, look for the option that says “Buy Policies Online” and click on it. Now you can choose the plan according to your needs.
Choose the LIC New Endowment Plan
From the list of available plans, find and click on LIC New Endowment Plan.
Click “Learn More” to Start
You'll be taken to a page with details about the plan. Click on the “Learn More” or “Buy Now” button to start your application.
Fill in the Application Form
A form will open where you'll need to fill in your basic details like name, age, contact information, income, and more. Be sure to enter everything correctly.
Upload Documents
You'll be asked to upload some documents like:ID proof (Aadhaar card, PAN card, etc.)Address proofA recent passport-size photoAge proof (if needed)
Submit and Make Payment
Once everything is filled and your documents are uploaded, submit the form. You'll then be taken to the payment page, where you can pay the premium amount safely online.
Confirmation and Policy Issue
After successful payment, you'll receive a confirmation message or email. LIC will process your application, and once approved, your policy document will be sent to you.
What is Not Covered in LIC New Endowment Plan?
The LIC New Endowment Plan does not cover the following in case of suicide:
Suicide within 12 months of policy start
If the person covered by the policy (whether mentally stable or not) dies by suicide within one year from the start of the policy, the nominee or beneficiary will receive 80% of the total premiums paid until the date of death. No further claims or benefits will be paid.
Suicide within 12 months of policy revival
If the person covered by the policy dies by suicide within one year of reviving the policy, the amount paid will be the higher of:80% of the total premiums paid until the date of deathSurrender value available on the day of deathIn both cases, no other claims or benefits will be paid under the policy.
FAQs
The LIC New Endowment Plan provides life coverage, savings, and tax benefits. It offers a lump sum amount at maturity, death benefits to the nominee, and the option to add riders like accidental death coverage. It also allows loans against the policy and tax-free maturity benefits.
The LIC New Endowment Plan is identified as Plan No. 814. It is a life insurance and savings plan that offers protection and maturity benefits, along with optional riders and tax advantages.
The LIC New Endowment Plan allows flexible sum assured options. You can choose an amount based on your financial needs, with a minimum coverage of Rs. 1 lakh.
The LIC New Endowment Plan offers bonuses that increase the policy's value. These bonuses, like simple reversionary bonuses and final additional bonuses, are added to your sum assured over time.
You can surrender your policy after paying premiums for at least 3 years, but the surrender value will be lower than the maturity amount.
If you miss a premium, you get a 30-day grace period to pay it. After that, your policy might lapse, but you can revive it by paying the due amount within 2 years.