Lic New Endowment Policy review and features

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Lic New Endowment Policy Plan no. 814 Introduction

Lic New Endowment Policy plan no 814 was introduced on 3rd January 2014. Lic New Endowment Policy 814 is an endowment policy where sum assured along with Vested simple reversionary bonus and Final additional bonus will be paid to the policyholder, at the end of the policy term.

Lic New Endowment Policy plan 814 provides optional benefit, Accidental Death and Disability Benefit Rider by payment of additional premium. Lic New Endowment policy also takes care of liquidity needs through its loan facility. This plan offers a combination of protection and saving features.

Lic New Endowment Policy Conditions

Eligibility Conditions for basic plan are,

Entry age:	Minimum: 8 years (completed) Maximum: 55 years (nearest birthday)
Maximum Maturity age:	75 years (nearest birthday)
Policy term:	Minimum: 12 years Maximum: 35 years
Premium Payment mode:	Yearly, Half-yearly, Quarterly or Monthly mode (through ECS only or through salary deductions)
Sum Assured:	Minimum: Rs.1,00,000/- Maximum: No limit. Sum Assured shall be in multiples of Rs. 5000/-
Documents required for fresh policy:	Application form/Proposal form along with photo. Address proof Age proof Medical reports (if required)

Lic New Endowment Policy Rebates

There are two rebates for the basic Lic New Endowment policy, they are

Mode Rebate
Sum assured Rebate

Mode Rebate:

Mode	Percentage
Yearly mode	2% of tabular premium
Half-yearly mode	1% of tabular premium

Sum assured Rebate:

Basic Sum assured	Rebate
Rs. 1,00,000/- to Rs. 1,95,000/-	NIL
Rs. 2,00,000/- to Rs. 4,95,000/-	2.00 % Basic Sum Assured
Rs. 5,00,000/- and above	3.00 % Basic Sum Assured

Lic New Endowment Policy Premium and Maturity Calculator

You can calculate the premium and Maturity benefits using Lic New Endowment Policy Premium and Maturity calculator. Policy period, Age and Sum assured are required to calculate the premium and maturity benefits.

Lic New Endowment Policy Maturity Benefits

Maturity Benefits:

On survival of the Life Assured to the end of policy term,

Maturity benefit (Benefits payable on maturity) = Basic Sum Assured + vested Simple Reversionary Bonuses + Final Additional Bonus, if any.

Lic New Endowment Policy Death Benefits

Death Benefits:

On death of the Life Assured during the policy term,

Death benefit (Benefits payable on death) = ‘Sum assured on Death’ + vested Simple Reversionary Bonuses + Final Additional Bonus, if any.

‘Sum assured on Death’ is higher of basic sum assured or 10 times of annualised premium.
Death benefit shall not be less than 105% of total premiums paid as on date of death.
The premiums mentioned above exclude taxes, extra premium and rider premiums, if any.

Lic New Endowment Policy Additional Benefits

Accident death and Disability Benefit Rider:

Accidental Death and Disability Benefit Rider (AD and DB) is available as an optional benefit by payment of additional premium.
In case of accidental death, an additional amount equal to Accident Benefit Sum assured is payable along with the death benefit.
In case of accidental permanent disability (within 180 days from the date of accident), an amount equal to Accident Benefit Sum assured will be paid in equal monthly installments spread over 10 years.
Future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured under the Lic New Endowment policy, shall be waived.

Eligibility conditions for Accidental Death and Disability Benefit Rider:

Entry age:	Minimum: 18 years (completed) Maximum: 55 years (nearest birthday)
Maximum Cover Ceasing age:	70 years (This cover can be opted for at any policy anniversary during the policy term but before the policy anniversary on which the age nearer birthday of the Life Assured is 70 years)
Minimum Accident Benefit Sum assured:	Minimum: Rs. 1,00,000/- Accident Benefit Sum assured shall be in multiples of Rs. 5000/-
Maximum Accident Benefit Sum assured:	An amount equal to the Sum Assured under the Basic Plan subject to the maximum of Rs.50 lakh Accident Benefit Sum Assured taking all existing policies of the Life Assured under individual as well as group schemes including policies with in-built accident benefit taken with Life Insurance Corporation of India and the Accident Benefit Sum Assured under the new proposal into consideration.

Additional Information about Lic New Endowment Policy

Grace period for payment of premium:

Under Lic New Endowment policy 814, grace period of one month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly mode.

Paid-up Value:

Paid-up Value = Basic Sum assured x (No. of premiums paid/ Total no. of premiums payable)

Example:

Suppose, if you have taken the policy of 1,00,000 basic sum assured and Total no. of premiums payable are 20, and if after 5 full years’ premium have been paid and any subsequent premiums be not duly paid, then

Paid-up value = 1,00,000 x (5/20) = 25,000

Surrender Value:

Lic New Endowment policy can be surrendered at any time during the policy term, provide at least three full years premiums have been paid.

Revival:

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy may be revived during the lifetime of the life assured, but within a period of 2 consecutive years from the date of first unpaid premium and before the maturity date.

Loan:

Loan facility is available under Lic New Endowment policy.

Suicide clause:

If the life assured commits suicide before 12 months from the date of commencement of risk, he/she will be returned back with 80% of premiums paid excluding any taxes and extra premium, if any.

Taxes:

Taxes, if any, shall be as per the Tax laws and the rate of tax as applicable from time to time. For more information regarding Income Tax Benefits, visit www.taxqueries.in.

Cooling-Off Period:

If the policyholder is not satisfied with the “Terms and Conditions” of the Lic New Endowment policy, the policy may be returned to the company within 15 days from the date of receipt of the policy stating the reason of objections.

Backdating Interest:

The policies can be dated back with in the same financial year.

Policy Stamping:

Under Lic New Endowment Policy plan 814, stamping charges will be 20 paise per thousand sum assured.

Assignments/Nominations:

Assignments and Nominations is possible under this Lic New Endowment Policy plan no 814.

Lic New Endowment Policy Example

Suppose if Raju of age 20 years has opted for Lic New Endowment plan for Sum Assured of Rs. 6,00,000/- and for policy term of 15 years then,

First Year Premium
Mode of Payment	without tax	Tax	with tax
Yearly Premium	40666	1257	41922
Half-Yearly Premium	20546	635	21181
Quarterly Premium	13840	428	14268
Monthly Premium	3460	107	3567
Second Year onwards Premium
Mode of Payment	without tax	Tax	with tax
Yearly Premium	40666	628	41294
Half-Yearly Premium	20546	317	20863
Quarterly Premium	13840	214	14054
Monthly Premium	3460	53	3513

Maturity benefit will be Rs. 9,54,000/-

Frequently Asked Questions (FAQ’s) of Lic New Endowment policy

What happens if you stop paying the premium?

If the premiums are not paid within Grace Period, the policy lapses. However, if at least 3 years’ premiums have been paid, the policy acquires a Paid up Value for a Reduced Sum Assured but the policy would be eligible for any future regular additions.

Paid-up value = Basic Sum Assured x (Number of Premiums Paid / Total Number of Premiums Payable)

The policy can however be revived within 2 consecutive years from the date of first unpaid premium.

What happens if you want to surrender the policy?

Lic New Endowment policy can be surrendered at any time during the policy term, provide at least three full years premiums have been paid. This percentage will depend on the policy term and policy year in which the policy is surrendered and specified as per the table mentioned.

What happens if you want a loan against your policy?

Loan can be availed under the Lic New Endowment policy provided the policy has acquired a surrender value and subject to the terms and conditions.

Lic New Endowment policy Documents and Forms

Lic New Endowment Policy Revival form 720

Lic New Endowment Policy Revival Form 700

Lic new endowment policy Proposal form 300

Lic life insurance Proposal form 340

Lic life insurance Maturity Claim Form

Lic New Endowment Policy 814 circular

Lic New Endowment Policy Plan no. 814