Hello friends, today we will give you information about such a plan of Life Insurance Corporation of India which is an individual plan. We are talking about LIC’s new endowment plan 914, earlier the table number of this plan was 814 but from 1st February 2020, all the plans of LIC have been changed, then there were some changes in this plan too.
|Plan Name||LIC New Endowment Plan|
|Plan detail||Plan No. 914|
What is the LIC New Endowment Plan-914?
LIC’s New Endowment Plan is a regular premium non-linked individual life insurance plan that offers both savings and protection to the policyholders. It provides financial assistance to the policyholder’s family on completion of the policy or the death of the policyholder during the course of the policy. Along with this, the policyholder also gets the facility of loan in this plan. On completion of the policy, the policyholder receives a hefty sum.
What’s Endowment Plan?
Endowment is basically a life insurance plan which encourages an insured to protect his life as well as to make a regular savings. After a certain period a good amount is paid to the insured.
Let’s understand this policy with an Example:
Name: Mr. Archit Tomar
Age: 21 years
Policy Term: 35 years
Sum Assured: Rs. 5 Lakh
Plan: LIC New Endowment Plan
Premium Paying Term (PPT): 35 years
There is a person named Archit Tomar who is 21 years old and he has taken this policy for 35 years with a sum assured of Rs. 5 lakhs. So here Archit’s premium for a policy of 35 years will go to Rs 1,186 per Month or Rs. 13,923 per Year
Total Premium: Rs. 4,87,612
Maturity Benefit (After 35 Years)
Sum Assured of the policy: Rs. 8 Lakhs
Vested Simple Revisionary Bonus: Rs. 8.40 Lakhs
Final Additional Bonus: Rs. 11.50 Lakhs
Maturity: Rs. 24.90 Lakhs
When the policy’s 35 years are completed, Archit will get maturity something like this. He gets Rs. 8 Lakhs as sum insured, Rs. 8.40 Lakhs as bonus and Rs.11.50 Lakhs as final additional bonus. In this way the total amount will become Rs 24.90 Lakhs. It can be seen here that Archit deposited Rs 4,87,612 as premium and on maturity he will get around 25 lakhs.
So here we can see that in 35 years, we are getting tripple amount.
Eligibility requirement for LIC New Endowment Plan-914
Minimum Entry Age: 8 Years (Completed)
Maximum Entry Age: 55 Years (Nearest Birthday)
Maximum Maturity Age: 75 Years (Nearest Birthday)
Minimum Policy Term: 12 Years
Maximum Policy Term: 35 Years
Minimum Sum Assured: Rs 1,00,000
Maximum Sum Assured: No Limit
Key Features of LIC New Endowment Plan-914
- This is a participating traditional endowment plan.
- In this plan of LIC you will get guaranteed returns and bonus.
- On the completion of policy you will get Simple Revisionary Bonus with Final Additional Bonus as a maturity.
- This plan also provides you Death Benefits.
- You can start this policy with minimum sum assured of Rs. 1 Lakh.
- Rider’s option also available in this plan.
Benefits of LIC New Endowment Plan
- Death Benefit
The Death Benefit, whichever is vested in the policy, along with the Death Benefit, is paid to the nominee on the death of the policyholder during the policy term.
Death benefit here means 7x the annual premium payable or at least 105% of the premiums paid till death.
- Profit on Maturity
The Maturity Sum Assured whichever is vested in the policy shall be the normal bonus and the final bonus payable in the event of survival of the insured during the policy term. Here Maturity Sum Assured is meant as equal to the Basic Sum Assured on the policy.
- Profit Sharing
This policy will offer to share in the profits of LIC and hence, simple bonus declared by LIC during the plan term will be payable under this policy.
- Loan Facility
In this plan, the policyholder can avail the loan facility provided the premium has been paid for at least 2 full years and subject to other terms and conditions as specified by LIC. The interest rate for the loan and the entire tenure of the loan will be applicable as per the rates announced by LIC on the basis accepted by IRDI.
Any outstanding loan or interest at the time of policy completion or death benefit will be recovered from the claim proceeds.
- Surrender Benefit
In this plan, the policy can be surrendered at any time but if the minimum premium has been paid for full 2 years then the policyholder can surrender the policy. On surrender, LIC will pay the Guaranteed Surrender Value or the Special Surrender Value, whichever is higher.
Rider options in LIC New Endowment Plan-914
The insured also has the option of taking some additional riders along with the basic policy. There are 5 Optional Riders which can be purchased by paying an additional premium along with the basic premium of the policy. The insured can opt for a maximum of 4 riders from the available options as one can only choose between LIC’s Accidental Death and Disability Benefit Rider and LIC’s Accident Benefit Rider.
- LIC’s Accidental Death and Disability Benefit
- LIC’s Accident Benefit Rider
- term assurance rider
- LIC’s New Critical Illness Benefit Rider
- LIC’s Premium Waiver Benefit Rider
Important Policy period in LIC New Endowment plan-914
Grace Period: If the insured person fails to pay the premium on time, a grace period of 30 days is given under the scheme, under which the insured person have to pay the due premium within 30 days. If unfortunately he will fail to make the payment within the grace period, then their policy lapses.
Free Look Period: Free look period here means that the policyholder has the facility to return the policy to LIC within 15 days from the date of purchase of the policy in case the policyholder is not satisfied with the terms and conditions of the policy.
The policy document may be sent back to LIC by the policyholder stating the reasons for dissatisfaction.
On receipt of the policy, LIC will cancel the policy and refund the amount paid by the policyholder after deducting expenses such as medical examination, special report, or any stamp duty charges.
Policy Termination or Surrender Benefit: The LIC New Endowment Plan also comes with a Surrender Value under which a certain percentage of the premium amount is given back to the insured if he/she decides to surrender the policy after completion of 3 years of the policy and a loan can also be availed.
Revival Period: If the policy premium has not been paid for 6 months from the due date of the policy, then the policy lapses after 6 months.
Such a lapse policy can be revived at any time in the next 5 years with the premium due to the insured. Once the policy is reinstated, the risk cover of the insured gets reinstated.
Discount and Offer in LIC New Endowment plan
This policy also provides policyholders a discount on premiums in case of higher Sum Assured and for premium payments made on a fixed installment mode.
- High Sum Assured Discount
|Basic Sum Assured||Discount as % of BSA|
|1 lakh to 1.95 lakh||0|
|2 lakh to 4.95 lakh||2%|
|5 lakh to 9.95 lakh||3%|
- Premium Waiver as per Payment Mode
- Waiver of Premium Payment Time
In this policy, if after the first premium, you get a relaxation of the term as per your premium paying turn.
- For example, if your payment mode is yearly, half-yearly or quarterly, then you will get a grace period of 30 days from your due date in which you will not incur any penalty.
- If your payment mode is on monthly basis then you will get grace period waiver of 15 days from the due date.
- The policy shall be deemed to be active during this period with risk coverage without interruption.
- New Endowment Tax Exemption
The premium paid for the New Endowment Plan of LIC is exempted under Section 80C of the Income Tax Act. Also the maturity benefit is also free under section 10(10D) of the Income Tax Act.
Important Documents of LIC New Endowment Plan-914
- Identity Proof: One passport size photograph and any Government ID like Aadhar Card, PAN Card, Voter Card, Driving License etc.
- Bank Details: Bank Pass Book details
- Age Proof: Board Exam Marks sheet, Birth Certificate, Pan Card, etc.
- Medical Reports (if required)
Death Benefit Payment Option in LIC New Endowment Plan
This policy also provides an option for the policyholders to choose the option of receiving the death benefit payout in installments for their nominees, if they so desire. The death benefit can be paid over a period of 5, 10, or 15 years instead of a lump sum. Installment payment can be opted for partial or full death benefit payable on the death of the policyholder.
I hope you have got all the information about LIC New Endowment Plan-914 from this article of ours.