LIC's New Endowment Plan (Table No. 914)

 LIC's New Endowment Plan (Plan No. 914) 

LIC's New Endowment Plan (Table No. 914) is a participating non-linked plan. Which offers an attractive combination of protection and saving features. This combination provides financial support for the family of the deceased policyholder any time before maturity and good lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility.

Benefits Payable on Death-

In case of death during the policy term, if the policyholder has paid all the due premiums then the death benefit, defined as the sum of "Sum Assured on Death" and Vested Simple Reversionary Bonuses and Final Additional bonus,  if any. if any, shall be payable. Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 10 times of annualized premium. This death benefit shall not be less than 105% of all the premiums paid as on date of death.

Benefits Payable on Maturity-

The "Sum Assured on Maturity" along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable on the Life Assured surviving the policy maturity date. Where "Sum Assured on Maturity" is equal to Basic Sum Assured. Provided that the policy is in-force till the date of maturity.

Participation in Profits-

The policy shall participate in the profits of the Corporation and shall be entitled to simple reversionary bonus declared as per the experience of the Corporation, provided the policy is in force.

The final (additional) bonus under the policy can also be declared in the year the death or maturity is claimed as a result of the policy. Final Additional Bonus will not be payable under paid-up policies.

Eligibility Conditions and Other Restrictions-

Riders Benefits For Policyholders-

In this LIC plan for the policyholder, the following five optional riders are available by paying additional premium. However, the policyholder can choose either LIC's Accidental Death and Disability Benefit Rider or LIC's Accident Benefit Rider. Hence, a maximum of four riders can be availed under one policy.

The optional riders available under LIC's New Endowment Plan (Plan No. 914) are as follows -

• Accidental Death and Disability Benefit Rider
• Accident Benefit Rider
• New Term Assurance Rider
• New Critical Illness Benefit Rider
• Premium Waiver Benefit Rider

Option to take Death Benefit in Installment-

The policy also offers policyholders an option to choose to receive the death benefit payouts in installments for their nominee. Death benefits can be paid over the period of 5,10 or 15 years instead of a lump-sum amount. It can be exercised by the policyholder during the minority of the life assured, or by the life assured during his/her life-time. The option of installment payment may be selected for part or full death benefits payable upon the death of the policyholder.

The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:

Payment of Premiums-

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through NACH only) or through salary deduction over the term of policy.

Grace Period-

In LIC's New Endowment Policy, if the policy has been chosen to pay premium in yearly, half yearly or quarterly mode. So in such a policy, a grace period of 30 days is given from the first unpaid premium. Whereas 15 days concession is given in the policy paying premium through monthly mode. The risk cover as per the terms of the policy remains in force during the grace period. If the premium of the policy is not paid before the expiry of grace period, the policy lapses.

The above exemption will also be applicable to the rider premium, which is payable along with the premium of the base policy.

Rebates-

Revival-

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium and before the date of maturity, as the case may be. The revival shall be effected on payment of all the arrears of premium(s) together with interest (compounding half yearly) at such rate as may be fixed by the Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured and/or Proposer (if LIC’s Premium Waiver Benefit Rider is opted for) on the basis of information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured/Proposer.

The Corporation reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of a discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Life Assured.

Revival of rider(s), if opted for, will be considered along with revival of the Base Policy, and not in isolation.

Policy Loan-

Loan can be availed under the policy provided at least two full years’ premiums have been paid and subject to the terms and conditions as the Corporation may specify from time to time.

The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.