LIC Endowment Plus Plan 2023 Benefits, Features, Details, Reviews

LIC’s New Endowment Plus Plan

The New Endowment Plus insurance plan from LIC is a non-participating unit linked plan. After the IRDAI (Insurance Regulatory and Development Authority of India) issued new product regulations in August 2015, LIC launched this ULIP policy. The plan permits you to put resources into value and obligation in four different blends of asset types to browse. The funds in which your premiums are invested are selected based on your risk tolerance. As a survival or maturity benefit, your investment’s fund value is repaid upon maturity. If there should arise an occurrence of a sad occasion during the approach term, demise advantages would be paid out to candidate/recipient. Let us know everything about the plan.

Features of LIC’s New Endowment Plus Plan

  • The new unit-linked endowment assurance plan from LIC, the endowment plus, gives you the option to invest in either the equity or debt markets using any of the four funds available to you. After premium allocation fees have been deducted, the premium you have paid is invested in the funds. However, because the fund value of your investment is dependent on the market-driven unit price or net asset value (NAV), there is a market risk associated with the investment.
  • Four investment fund options LIC’s new endowment plus plan gives you the option of choosing from four distinct investment funds based on your risk tolerance and investment objective. The premium paid will be used to purchase fund units after charges have been deducted. Here are four investment funds that can be combined in a variety of ways.
Growth fund 40% to 80% Not more than 40% Not less than 20%
balanced fund 30% to 70% Not more than 40% Not less than 30%
Secure Fund 15% to 55% Not more than 40% Not less than 45%
Bond Fund Nil Not more than 40% Not less than 60%

Pattern of investment for discontinued policy fund

  • Money market instruments : 0% to 40%
  • Government securities : 60% to 100%
  • Flexibility to choose premium amount and payment frequency
    The premium amount for LIC’s new endowment plan is yours to choose from. If there should be an occurrence of normal installment of premium, recurrence can be picked by you according to your comfort – yearly, half-yearly, quarterly or month to month (through ECS mode as it were). You can also invest with a single premium under the plan.
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Benefits of LIC’s New Endowment Plus Plan

If you’re looking for tax advantages and want to do something good for the world, then you should consider a charitable donation through your employer. One way to do this is through a donation in lieu of taxes (also known as an endowment), and LIC’s new Endowment Plus Plan is a great way to do this. With this plan, you can make a donation to LIC and receive a tax deduction as well as significant benefits for your charity. Let’s take a closer look at some of the benefits of this plan.

  • Transparency Given that it is a ULIP plan, the investor can track fund performance by knowing the investment fund’s daily net asset value.
  • Customize with an optional rider The new endowment plan from LIC lets you add an additional accidental death benefit rider to your policy. Your policy’s benefits and coverage are enhanced by the rider. Premium is an additional cost associated with the rider.
  • Free fund switches The new endowment plus plan from LIC has a switching option that lets you switch your investments between different types of funds based on market conditions and your risk tolerance. In each policy year, four free fund changes are allowed. There will be a charge of INR if you switch more than four times in a policy year. 100 for each switch.
  • Liquidity The new endowment plus plan from LIC provides liquidity by allowing partial policy withdrawals after five policy years. However, withdrawals are permitted provided a minimum balance of is maintained:
  • Sixth through tenth of the policy: whichever is greater, 50% of the fund’s value or three times the annualized premium.
  • 11th through 20th years of the policy: whichever is greater, 25% of the fund’s value or three times the annualized premium.
  • Benefits from taxes The new endowment plus plan from LIC also helps you save taxes. Under Section 80C of the Income Tax Act of 1961, you are entitled to a tax deduction for the premiums you pay. Under Section 10 (10D) of the Income Tax Act, benefits received at the conclusion may also be exempt from tax.

Who should buy LIC’s New Endowment Plus Plan?

Any kind of investor who wants to get both long-term savings and protection can buy LIC’s new endowment plus. Investors with varying risk profiles can tailor their choices and invest accordingly with a variety of fund options.
Let’s examine whether investment funds are suitable.

  • Growth capital: Growth funds are an excellent option for capital appreciation if you are an aggressive investor with a long-term objective.
  • Fund with a balance: Balanced funds are a great option for investors who want to strike a balance between income generation and capital appreciation. secure
  • funds: A secured fund can assist you in obtaining a steady income if you have a moderate risk appetite.
  • The bond fund: For conservative investors with a low tolerance for risk, this fund may be the best option.
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There is likewise a choice to change starting with one asset then onto the next relying upon your decision.

Eligibility criteria for LIC’s New Endowment Plus Plan

If you’re looking to invest in the stock market, LIC’s new Endowment Plus Plan may be a good option for you. This plan offers a variety of eligibility criteria that make it a great choice for investors of all levels of experience. Plus, the plan offers a generous return on investment, so you can be sure that you’ll be receiving top dollar for your money. Read on to learn more about the eligibility criteria for this new plan, and whether or not it’s right for you.

Let’s take a look at the eligibility requirement for LIC’s new endowment plus

Entry age 90 days (completed) 50 years (nearest birthday)
Maturity age 18 years (completed) 60 years (nearest birthday
Policy term 10 years 20 years
Premium payment term Same as policy term

The eligibility requirements for the premium amount vary depending on the chosen method of payment. Additionally, the premium amount determines the sum assured. The requirements for being eligible to pay the premium are listed below.

Yearly 20000 no limit
half-yearly 13000
Quarterly 8000
Monthly (through ECS) 3000
  • The risk cover will begin one day before the completion of two years from the date of policy commencement or one day before the policy anniversary after the life assured turns eight years old, whichever comes first, in the event that the life assured is younger than eight years old at the time of taking out the policy.
  • The risk cover will begin immediately if the life assured is over 8 years old.

Charges in LIC’s New Endowment Plus

LIC, the life insurance company, has just announced the launch of their new Endowment Plus product. This product allows LIC customers to invest their premiums into a variety of stocks and other securities to generate income. The Endowment Plus is a great option for those who want to create a diversified investment portfolio with the potential for growth.

Below are some of the major charges applicable for LIC’s new endowment plus.

Premium allocation charges

Premium allocation costs are deducted before the money is invested each time you pay a premium. The percentage of charges based on the policy year is shown here.

1st year 7.5% premium
2nd year to 5th year 5% premium
6th year awards 3% premium

Mortality charges

Mortality fees are essentially the cost of providing life insurance. This is age-dependent and dependent on the amount guaranteed. By removing an appropriate number of units from your investment fund at the beginning of each month, these costs are deducted.
Here is a mortality rate for various ages of healthy life.

Charges per annum per INR. 1000 INR. 1.23 INR. 1.60 INR.3.59 INR. 6.18

Fund management charges

When calculating the net asset value (NAV), these costs are added daily. The following are the fees:

All four types of funds (Bond fund, Secured fund, Balanced fund and Growth fund 0.7%pa
discounted fund 0.5% pa

policy administration charges

By removing an appropriate number of units from your investment fund at the beginning of each month, these costs are deducted. Month to month charges are as per the following

1st year (0.35%*installation premium) or INR. 100, whichever is lower
2nd year (0.25%*installation premium) or INR. 70, whichever is lower
3rd year 2nd year charge*1.03
4th year 3rd year charge* 1.03
5th year 4th year charge* 1.03
6th year awards INR. 52.17 In 6th year and yearly increase at 3% thereon.

These fees apply to the annual payment method; for other payment methods, the fees must be multiplied by the following factors.

1 Lower of 15% Lower of 6%
2 Lower of 7.5% Lower of 4%
3 Lower of 5% Lower of 3%
4 Lower of 3% Lower of 2%
5th year awards Nil Nil

Accidental death benefit charges (in case rider is availed)

If you choose to add a rider, the cost of the protection will be deducted each month at the beginning of each month by deducting an appropriate number of units from the fund value at the rate of INR. 0.40 percent of the rider’s assured sum for each policy year.

Documents required to buy LIC’s New Endowment Plus Plan

The following are the required documents for LIC’s new endowment plus:

  • Proof of age (birth certificate, voter ID, driving license,
  • 10th grade mark sheet, passport, etc.)
  • Proof of identity (PAN card, Aadhaar card, driving license, voter’s ID, passport)
  • Proof of address (passport, ratio card, voter’s ID, driving license, most recent utility bills, passport-sized photos)

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Scope of Coverage under LIC’s New Endowment Plus Plan

The new endowment plus plan from LIC offers both a survival benefit and life insurance coverage. Let’s examine each scenario to comprehend the coverage’s scope.

death benefits

  • In the event that the life assured dies before the risk begins, the fund value of the investment will be paid out.
  • If the life assured passed away after the risk began, the nominee or beneficiary would receive the higher of the basic sum assured or the fund value.
  • Benefits for survival The investment’s fund value at the end of the policy term is the survival benefit.

Exclusions for LIC’s New Endowment Plus Plan

  • Life assureds under the age of eight at the time of purchase or renewal are exempt from the suicide clause.
  • Clause for suicide: The beneficiary or nominee of the life assured will be entitled to the fund value available on the death of the life assured within a year of the date of policy start or renewal in the event of suicide-related death.
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