LIC New Endowment Plus Plan

The features of LIC New Endowment Plus - ULIP are listed below:

Benefits of LIC New Endowment Plus - Unit Linked Plan :

The benefits of LIC New Endowment Plus are listed below:

Death Benefit

Upon death of the Life Assured before the maturity date the following benefits are payable.

1. Death before commencement of risk: An amount equal to Policyholder's Fund Value will be paid.
2. Death after commencement of risk: An amount equal to the higher of Basic Sum Assured or Policyholder's Fund Value will be paid. Basic Sum Assured is equal to 10 x annualized premium or 105% of the total premiums paid, whichever is higher.
3. Charges such as policy administration charge, mortality charge, accident benefit charge and service tax will be paid to the nominee in addition to the death benefit.

Maturity Benefit

If the Life Assured survives the maturity date, an amount equal to the Policyholder's Fund Value is paid. The maturity benefit is paid either as a lump sum or in equal instalments.

Linked Accidental Death Benefit Rider

LIC's Linked Accidental Death Benefit Rider can be opted for within the policy term provided the minimum outstanding policy term is 5 years. This rider will be available till maturity date. However, this will not be available on the life of minors. It will be available from the policy anniversary after completion of 18 years of age. If a policyholder opts for this rider, an additional amount equal to accident benefit Sum Assured is paid in the event of death due to accident. Accident benefit charges will be deducted at the start of the policy month. Policyholders have the option to cancel this rider during the policy term. If this rider is cancelled, it cannot be revived during the policy term. If the basic policy is not in force, this rider will stand terminated. While this rider may not be revived in isolation, it can be revived along with the basic policy during the revival period.

1. Accident benefit charge: This covers the cost of the accidental death benefit rider at the start of each month by cancelling proportionate number of units from the Fund Value of the policyholder (level annual charge at the rate of Rs. 0.40 per 1000 accident benefit Sum Assured per policy year).Salient features of the accident benefit rider are listed in the table below:Minimum entry age18 yearsMaximum entry age55 yearsMaximum maturity age60 yearsMinimum accident benefit sum assuredRs.10,000Maximum accident benefit sum assured10 times of annualized premium, subject to aggregate limit of accident benefit Sum Assured (in-built riders taken under both individual and group policies) should not exceed Rs.1 crore

Eligibility Conditions :

The eligibility conditions of LIC New Endowment Policy are listed below:

Investment of Funds:

Allocated premiums are utilized to buy units of the fund type opted by customers. Policyholders have the option to choose any one of the four funds listed in the table below:

Discontinued Policy Fund

The pattern, in terms of investment of the discontinued policy fund, is the following:

1. Money market instruments: 0% to 40%
2. Government securities: 60% to 100%

Charges Involved in the Plan:

Premium Allocation Charge

It is the percentage of premium allocated towards charges from the premium. The allocation rate is the part of the premium used to buy units for the policy. The allocation charges are listed in the table below:

Policy Administration charge

It is deducted at the start of each policy month by cancelling the appropriate number of units out of the Fund of a policyholder. The details of charges are listed below:

K is taken as given in the table below:

Fund Management charge

The Fund Management Charge will be 0.70% p.a. of the Unit Fund for all the fund types and 0.50% p.a. of Unit Fund for 'Discontinued Policy Fund'. This charge is levied at the time of NAV computation, which which is done on a daily basis.

Switching charge

This charge is levied upon switching from one fund to another. Four switches are allowed free of charge within a policy year. Any subsequent switches, will incur a charge of Rs. 100 per switch.

Discontinuance charges

The 'Date of discontinuance of the policy' will be the date on which LIC receives intimation about discontinuance or surrender of the policy or on the expiry of the notice period of 30 days, whichever is earlier. The notice period will start from the receipt of notice by a policyholder. Details of discontinued charges are listed in the table below:

Service Tax charges

Service tax charge will be levied as per the current tax laws and rate of service tax. Service tax will be levied on all or any of the charges applicable as issued by Government of India.

Miscellaneous charge

Any alterations such as change in premium payment mode, addition of the Accident Benefit Rider after policy issuance will incur a fee of Rs.50 which will be deducted by cancellation of the appropriate number of units out of the Fund of a policyholder. The deduction will be made on the date of alteration.

Premium Discontinuation:

If premiums are not paid within the grace period, a notice will be sent to the policyholder within 15 days from the date of expiry of grace period. The policy will be considered as in force up to expiry of 30 days of the receipt of notice. Insurance cover will continue till the date of discontinuance of the policy. The benefits payable up to the expiry of 30 days will be same as under an in-force policy, except in the case of partial withdrawal.

If the policy is discontinued on or before the expiry of the 5 years' lock-in-period, policyholder can exercise one of the following options as listed below within thirty days.

If policyholder chooses option 1, he or she pays the due premium during the notice period, the policy will then be in force. If policyholder chooses option 2, the Fund Value after deducting the discontinuance charge will be converted into a monetary amount, which will then be transferred to the Discontinued Policy Fund. However, if policyholder opts for surrender within the revival period but ¾ before the expiry of 5 years' lock-in-period, the proceeds of the Discontinued Policy Fund will be paid upon completion of 5 years.

If a policyholder opts for surrender within the revival period but ¾ after the expiry of 5 years, the proceeds will be paid immediately. If a policyholder chooses option 3, then the Fund Value after deducting the discontinuance charge will be converted into a monetary amount. The proceeds will be payable upon completion of 5 years lock-in-period. However, if a request for revival is received within 5 years' lock-in-period or while the policy is revivable, whichever is earlier, the policy will be restored.

If the policy is discontinued after the expiry of 5 years' lock-in- period, the policyholder can choose any of options listed below within thirty days of receipt of such notice