(Table No 814)
New Endowment Plan
LIC’s New endowment plan is introduced with effect of 3rd Jan 2014. This is conventional with profit Endowment assurance plan.
Eligibility conditions and restrictions:
1) Minimum Age at entry for Life Assured : 8 years (completed)
2) Maximum Age at entry for Life Assured : 55 years (nearest birthday)
3) Minimum Policy Term : 12 years
4) Maximum Policy Term : 35 years
5) Minimum age at Maturity : 18 years (Completed)
6) Maximum age at Maturity : 75 years (Nearest Birthday)
7) Premium payment mode : Yearly, Half-yearly, Quarterly, Monthly (SSS or
8) Minimum Sum Assured : Rs 1,00,000/-
9) Maximum Sum Assured : No Limit
The Sum Assured shall be in multiple of Rs 5000/-
Maturity Benefit – Basic Sum Assured along with Vested Simple Reversionary Bonuses and Final Additional Bonus.
Death Benefit – “Sum Assured on Death” along with Vested Simple Reversionary Bonuses and Final Additional Bonus.
The death benefit as defined above shall not be less than 105% of total premiums* paid as on the date of death.
What is Sum Assured on Death?
Sum Assured on Death shall be Higher of ~ Basic Sum Assured (BSA)
OR 10 times Annualized Premium(10 x AP).
Note: The premiums mentioned in death benefit are excluding taxes, extra premiums and premiums for riders, if any
Guaranteed Surrender Value – Available after payment of 3 full years premiums.
Guaranteed Surrender Value shall be a percentage of total premiums paid excluding extra premium, if any and premium paid for riders, if opted for.
Examples of Guaranteed Surrender Value factors applicable for total premiums paid are as under:
S.No. Policy Year Guaranteed Surrender Value factor
1 3 30%
2 5 50%
3 t -1 80% (t=Policy Term)
Note: Guaranteed Surrender Value factor applicable to vested bonus
Examples of Vested bonus factors are as under:
Surrender Value shall be the discounted value of the Paid-up Sum Assured and vested simple reversionary bonuses.
Year of SV Policy Term Factor
3 12 18.60%
19 25 20.85%
29 30 30%
( In multiples of 5000)
Special Surrender Value (SSV) – The discount factors shall be surrender value factors as provided in Table-1A of the Special Surrender Value Booklet and will depend upon the policy term and duration elapsed since the commencement of the policy.
Surrender Value payable – The Higher of Guaranteed Surrender Value and Special Surrender Value shall be payable.
Loan – Available after payment of 3 full years premiums.
The maximum amount of loan that can be granted as a percentage of Surrender Value shall depend on the Policy Term.
Foreclosure action shall not be taken under fully paid-up and in force policies even if there is default of loan interest.