LIC’s New Endowment Plus

New Endowment Plus

New endowment plusNew Endowment Plus plan is a unit linked investment plan which provides insurance as well. In this plan the amount paid as premium by the policyholders are used to buy units from a 4 different funds as pre-decided by the policyholder.

According to the amount of risk and expected returns the policyholder is ready to take, there are four funding options available for him to opt from. Every month some units are used for risk cover of the policyholder and rest go of the units contribute to the investment.


Fund Types to Invest in

Fund Type Govt./Govt. Guaranteed Securities/Corporate debts Money market instruments Listed in equity Shares Risk & Returns
Bond Fund Not less than 60% Not more than 40% Nil Low Risk
Secured Fund Not less than 45% Not more than 40% 15% to 55% Steady Income – Lower to Medium Risk
Balanced Fund Not less than 30% Not more than 40% 30% to 70% Balanced income & Growth – Medium Risk
Growth Fund Not less than 20% Not more than 40% 40% to 80% Long Term Capital & Growth – High Risk


Plan Features

Min/Max Age at Entry  90 days to 50 Years
Min/Max Policy Term  10 to 20 Years
Max Maturity age  60 years
Min Premium Yearly – Rs 20,000 | Half Yearly – Rs 13,000 | Quarterly – Rs 8,000 | Monthly – Rs 3,000
Max Premium  No Limit (Incremental Annual Premium in multiples of Rs. 1,000 and Monthly in multiple of Rs. 250)
Loan Facility  No
Premium Payment  Monthly, Quarterly, Half-Yearly & Yearly


Benefits of New Endowment Plus

  • Maturity Benefits – If the policyholder survives till the end of the policy term, then an amount equal to the policyholder’s Fund Value shall be paid to him/her. There is an option available as to how the policyholder wants the maturity amount to be settled, in a lump sum or in instalments.
  • Death Benefits – If unfortunately the life insured dies before the completion of the policy term then the death benefits would be paid to the nominee. However the death benefits paid would be different depending, if the death of the policyholder was before or after the Date of Commencement of Risk.

The actual risk cover of the child starts after he/she completes 8 years or after 2 years of commencement of the policy, whichever comes first is known as the Date of Commencement of Risk.

  • Death before the Date of Commencement of Risk – If the policyholder dies before the date of commencement of risk then the proposer would be given back the entire amount of the premiums paid till the date of the death of the child excluding taxes and extra premiums.
  • Death after the Date of Commencement of Risk – If the policyholder dies after the Date of Commencement of Risk then the nominee would be paid Death Benefits which is 105% of the total premiums paid.


Accidental Death and Disability Benefit Rider

  • This is an optional benefit which can be added to the policy by the payment of additional premium.
  • In case of accidental death of the policyholder an additional sum equivalent to the Accident Benefit amount assured is paid in addition to the Death Benefit which is 105% more than that of the total premiums paid by the policyholder till the date of death.
  • In case of permanent disability after an accident, within the time period of 180 days from the precise date of accident, the policy holder 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 Plus Plan would be waived off.
  • You should be a minimum of 18 years completed and a maximum of 55 years to apply for this rider.


  • The maximum age for accidental death cover is 70 years.
  • The minimum Accident Benefit Sum Assured is Rupees 10,000/-
  • A maximum amount of Rs. 100, 00,000 Accident Benefit Sum Assured can be made including all the plans with accidental benefits taken in the Life Insurance Corporation of India. The incremental amount of the rider should be in multiples of 5,000.


Grace period & Revival Policy

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

If the premium is not paid on time and the grace period then a notice shall be sent to the policyholder from the reinsurance department as a reminder to pay the premium.


Charges in New Endowment Plus Plan

Fund Management Charges – These charges are dependent on the type of fund and are deducted on the date of NAV calculation:

  • 0.70% per annum of unit fund is charged irrespective of the type of fund.
  • 0.50% per annum of unit fund is charged on “discontinued policy fund”.


Switching – The policyholder is allowed 4 switches free of charge to different fund types during the policy term. Any switch made after the 4 free switches is chargeable as Rs. 100 per switch.

There are few more charges such as Policy Administration Charges, Misc. Charges, Mortality Charges etc. for a detailed list of charges and their calculations you are requested to visit LIC India’s official website.



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.