LIC’s New Endowment Plan

New Endowment Plan – UIN: 512N277V01

LIC New endowment plan logo

LIC’s New Endowment Plan is a non-linked conventional insurance policy introduced on 3rd January 2014 which helps both with protection and savings.

This insurance policy insures your life throughout the policy term, on maturity, this policy offers a good amount which can be used for various reasons like Children’s education or marriage, buy a house or fulfil other financial needs.

The New Endowment Plan is a policy recommended for people of all age group because of reasons such as:

  • It has comparatively higher bonuses than the other policies.
  • The premium amount is low compared to other plans of the same category.
  • It is a combination of investment as well as life insurance, both the purposes are solved under one plan.
  • The Policyholders are entitled to bonuses and an additional final bonus as well.
  • The accidental benefit covers the rider as well.
  • You will save tax on the premiums paid.
  • Enjoy tax-free maturity amount.


Plan Features

Min/Max Age at Entry  8 to 55 Years
Min/Max Policy Term  12 to 35 Years
Maximum Maturity Age  75 Years
Min/Max Sum Assured  1 Lac to No Limit** (Incremental Sum Assured in multiples of 5000)
Min/Max Policy Term  12 to 35 Years
Tax Rebate  Yes, both premium payments & death/maturity under section 80(c) and 10(10d) of I.T Act
Loan Facility  Yes, after 3 years from date of policy inception
Premium Payment  Monthly ECS*, Quarterly*, Half-Yearly & Yearly

*There are no rebates in these payment modes since a 1% & 2% rebate is provided in half-yearly & yearly modes respectively.

** Depends on Income


Benefits of New Endowment Plan

  • On Maturity – If the policyholder survives till the end of the policy term then he/she would be eligible to claim the Maturity Benefits which are payable at the end of the maturity term.
Includes Basic Sum Assured + Vested Simple Reversionary Bonus (Depends on Company’s Experience) + FAB (Final Additional Bonus, if any)


  • On Death – If the policyholder dies during the policy term then he/she would be eligible for Death Benefits which are payable to the nominee after the demise of policyholder.
Includes Basic Sum Assured or 10 times Annualized Premium* (whichever is higher) + Vested Simple Reversionary Bonus (Depends on Company’s Experience) + FAB (Final Additional Bonus, if any).


The sum assured on death can not be less than 105% of the total premiums paid by the policyholder till the date of the death.

*Premium means amount excluding taxes, rider premiums and extra premium.


Accidental Death & Disability Riders

  • These are optional benefits which can be added to the policy by the payment of additional premium.
  • In case of accidental death of the policyholder double of sum assured is payable (Max Rs 50 lac.)
  • The maximum age for accidental death it covers is 70 years.
  • In case of permanent disability after an accident, within the time period of 180 days from the precise date of accident, the policyholder would be paid the Accident sum assured in equal monthly instalments spread out over a period of 10 years.
  • All the future premiums of the Basic and Accident Benefit Sum assured of the New Endowment Plan would be waived off.
  • The minimum Accident Benefit Sum Assured is Rupees 1,00,000/-
  • A maximum amount of Rs. 50, 00,000/- Accident Benefit Sum Assured can be made including all the plans with accidental benefits taken in the Life Insurance Corporation of India.


Grace Period & Revival of Policy

For Monthly mode of premium payment a grace period of 15 days are given to make the payment. For Yearly, Half-yearly and Quarterly mode of payment a grace period of 30 days are allowed in case the policy holder has been unable to pay the premium on the due date.

Revival of New Endowment Plan – If the premium is not paid on time and the grace period lapses as well without the payment being made, then the policy expires. However, the policy can be revived at any time during the policy term within a period of 2 years from the last premium paid & before maturity.


Surrender & Suicide Cases

Surrender of New Endowment Plan – The policyholder of the New Endowment Plan is free to surrender the policy at any given time of the policy term, provided that the payment of the premiums of three full years have been successfully made. (Check for penalties)

If the policyholder happens to commit suicide before a year from the commencement of the policy then 80% of the premiums would be returned with the exclusion of tax and extra premiums.


Documents Required

  • Plan application form with a photograph
  • Residence proof
  • ID & Age proof
  • Medical reports if necessary


Disclaimer – Though we try our best but we do not guarantee correctness of information hence you are advised to be cautious & do thorough research before reaching to a conclusion. If you find any discrepancies you’re welcome to contact us.