New Endowment Plan

LIC's New Endowment Plan is an Insurance plan which provides the combination of savings and protection against financial problems. This policy offers financial support for the deceased policyholder’s family any time before maturity and get the good value at the maturity for the surviving Life Assured (Policyholder).

Death benefit:

On death during the policy term: Sum Assured will be payable with vested Simple reversionary bonuses and Final Additional bonus, if any.

The Sum Assured is basic sum assured or 10 times of annual premium which is higher and the benefit is not less than 105% of all the paid premiums on date of death.

Note : - Where premiums exclude service tax, extra premium and rider premiums, if any.

Maturity Benefit:

Sum Assured will be payable with vested Simple reversionary bonuses and Final Additional bonus, if any.

Simple Reversionary Bonus: The policy shall take part in profits of the Life Insurance Corporation and shall be eligible to get Simple Reversionary Bonuses declared as per the experience of the Corporation.

Final (Additional) Bonus: Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity on such terms and conditions as may be declared by the Life Insurance Corporation from time to time.

Optional Benefit:

LIC’s Accidental Death and Disability Benefit Rider:

Optional Benefits are available under this plan with paying additional premium. LICs Accidental Death and Disability Benefit Rider is available for this plan.

In case of accidental death, Accident Benefit Sum Assured will be payable with the basic plan sum assured on death.

In case of permanent disability person due to accident, Accident Benefit Sum Assured will be payable in equal monthly instalments for 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.

Eligibility Conditions and Other Restrictions:

For Basic plan
  • Age Eligibility: 8 to 55 years
  • Policy Term: 12 years to 35 years
  • Sum Assured: Rs.1, 00, 000 to No limit

(The Basic Sum Assured shall be in multiples of Rs. 5000/-)

  • Premium Payment Mode: Yearly, Half-yearly, Quarterly and monthly (through ECS) or Salary Deduction Method
  • Grace Period: 30 days for Yearly, Half-yearly, Quarterly; 15 days for Monthly Payment.

Grace Period: After the premium payment due date the certain time is given by LIC India to make due premium payment.

For LIC’s Accidental Death and Disability Benefit Rider
  • Minimum Accident Benefit Sum Assured: Rs. 100,000
  • Maximum Accident Benefit Sum Assured: An amount equal to the Sum Assured under the Basic Plan subject to the maximum of Rs.50 lakh Accident Benefit Sum Assured taking all existing policies of the Life Assured under individual as well as group schemes including policies with in-built accident benefit taken with Life Insurance Corporation of India and the Accident Benefit Sum Assured under the new proposal into consideration.

(The Accident Benefit Sum Assured shall be in multiples of Rs. 5000/-)

  • Minimum Age at entry : 18 years (completed)
  • Maximum Age at entry : The cover can be opted for at any policy anniversary during the policy term but before the policy anniversary on which the age nearer birthday of the Life Assured is 70 years.
  • Maximum cover ceasing age : 70 years (nearest birthday)


LIC India offers some benefits to the policyholders by choosing specific mode and high sum assured of the plan.

High Sum Assured Rebate
Basic Sum Assured (B.S.A) Rebate
1,00,000 to 1,95,000 NIL
2,00,000 to 4,95,000 2.00 % of B.S.A.
5,00,000 and above 3.00% of B.S.A.
Premium Payment Mode Rebate
Yearly mode2% of Tabular Premium
Half-yearly mode1% of Tabular premium
Quarterly & Salary deduction NIL

Revival Period:

The policy will lapse when the policyholder does not pay the premium even after the completion of the grace period.

Life Insurance Corporation gives the 2 consecutive year revival period from the date of first unpaid premium and before the date of maturity to revive the lapsed policy. In the two years revival period the policy holder may pay the all arrears of premium with interest to make the policy in-force.

Note:- the interest rate fixed by the corporation at the time of payment.

Paid-up Value:

If the policyholder paid premium for minimum three years LIC offers the policyholders to convert their normal policy into paid-up policy.

After that the policyholder unable to pay next premium the policy is not cancelled. Instead, the sum assured of the policy reduced depending on the paid premiums, which is Paid up value.

The paid-up Sum assured is payable on the date of maturity or in case of prior death.

Rider(s) do not acquire any paid-up value and the rider benefits cease to apply, if policy is in lapsed condition.

Surrender Value:

If the policy holder terminates the policy before the end of the policy term or before the maturity. It is called Surrender.

The amount will be payable to the policy holder after the termination of policy that is Surrender Value is available under this plan.

The Guaranteed Surrender Value allowable shall be percentage of total premium paid excluding service tax, extra premium, if any and premiums for riders, if opted for.

In addition, the surrender value of vested simple reversionary bonuses, if any, shall also be payable, which is equal to vested bonuses multiplied by the surrender value factor applicable to vested bonuses .These factors will depend on the policy term and policy year in which the policy is surrendered.

The Corporation may, however, pay Special Surrender Value as applicable as on date of surrender provided the same is higher than Guaranteed Surrender Value.


Loan facility is available for this plan after the first policy year and subject to the terms and Conditions of Life Insurance Corporation that may specify and vary any time.


Taxes, if any, shall be as per the Tax laws and the rate of tax as applicable from time to time. The amount of tax payable as per the prevailing rates shall be payable by the policyholder on premiums including extra premiums, if any.

The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan.

Cooling-Off Period:

15 days are the cooling-off period for this plan. If the policyholder is not satisfied with the policy, the policy may be given back to the LIC Corporation within 15 days from the policy receipt.Then the Corporation shall cancel the policy and return the payment of first premium after deduction of premium for the period on cover, charges for medical examination, special reports, if any, and stamp duty.


If Life Assured commits suicide within one year from the date of risk commencement, the policy will be cancelled and cannot claim death benefit. LIC will return the extent of 80% of the single premium paid excluding taxes and any extra premium paid.

If the Life Assured commits suicide within one year from the date of revival, the amount which is higher 80% of premium paid till the date of death (excluding taxes, any extra premium paid,rider premium) or surrender value if the policy in force will be payable.