When it comes to securing your family’s future while building long-term savings, LIC’s New Endowment Plan stands out as a perfect solution. This dual-purpose policy not only protects your loved ones financially but also helps you systematically grow your wealth over time.
LIC Single Premium Endowment Premium Calculator
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Results Table
Installment Premium Details
| Premium Type | Without GST | With GST (4.5%) | With GST (2.25%) |
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Premium by Frequency
| Frequency | Without GST | With GST (4.5%) | With GST (2.25%) |
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Are you looking to explore more LIC plans and calculate their benefits? Check out our range of LIC Premium Calculators below to find the perfect plan for your needs:
- LIC Single Premium Endowment Plan Calculator
- LIC New Jeevan Anand Plan Calculator
- LIC Jeevan Lakshya Plan Calculator
- LIC Jeevan Labh Plan Premium Calculator
- LIC Amritbaal Plan Premium Calculator
- LIC Bima Jyoti Plan Premium Calculator
Key Features
- Dual Benefit: The policy provides financial protection and savings, giving you peace of mind and helping you meet long-term goals.
- Flexible Premium Payment Options: You can pay premiums yearly, half-yearly, quarterly, or monthly, depending on your needs.
- Policy Term: Choose a term from 12 to 35 years based on your financial plans.
- Enhanced Coverage: Additional riders, like Accident Benefits and Disability Benefits, can be added for extra security.
- Loan Facility: Loans can be availed against the policy’s surrender value to manage financial emergencies.
- High Sum Assured Rebates: Premium discounts are available for higher sums assured, making it economical to have larger coverage.
Eligibility Criteria
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| Feature | Details |
|---|---|
| Minimum Entry Age | 8 years |
| Maximum Entry Age | 50 years |
| Minimum Maturity Age | 20 years |
| Maximum Maturity Age | 75 years |
| Policy Term | 12 to 35 years |
| Minimum Sum Assured | ₹2,00,000 |
| Maximum Sum Assured | No Limit |
Benefits
1. Death Benefit
In case of the policyholder’s death during the policy term, the nominee receives:
- Sum Assured on Death: Higher of Basic Sum Assured or 7 times the annualized premium.
- Bonuses: Any vested Simple Reversionary Bonuses and Final Additional Bonus (if declared).
- The total death benefit is guaranteed to be at least 105% of the premiums paid.
If the Basic Sum Assured is ₹5,00,000 and the annual premium is ₹75,000:
- Sum Assured on Death: Higher of ₹5,00,000 or 7 × ₹75,000 = ₹5,25,000.
- Total Death Benefit = ₹5,25,000 + Bonuses (if any).
This ensures financial security for your loved ones in your absence.
2. Maturity Benefit
If the policyholder survives the term, they receive:
- Sum Assured on Maturity: Equal to the Basic Sum Assured.
- Bonuses: Vested Simple Reversionary Bonuses and Final Additional Bonus (if declared).
For a policy with a Basic Sum Assured of ₹7,00,000 and a term of 25 years, the maturity amount, including bonuses, could total ₹10,00,000. The final amount depends on the declared bonus rates.
3. High Sum Assured Rebates
Rebates on premiums are offered based on the Sum Assured:
| Sum Assured Range | Rebate on Premium |
|---|---|
| ₹2,00,000 to ₹5,00,000 | Nil |
| ₹5,00,000 to ₹10,00,000 | 2.5% |
| ₹10,00,000 and above | 4.0% |
This makes the plan economical for individuals opting for higher coverage.
4. Loan Facility
Loans can be availed after one year, subject to surrender value:
- For in-force policies: Up to 75% of the surrender value.
- For paid-up policies: Up to 65% of the surrender value.
- Interest Rate: 9.5% per annum (subject to change).
This feature helps address financial emergencies without disturbing the policy benefits.
Sample Premium Table
The annual premiums for a Basic Sum Assured of ₹2,00,000 are as follows:
| Age (Years) | Policy Term (Years) | Annual Premium (₹) |
|---|---|---|
| 20 | 15 | 14,543 |
| 30 | 25 | 8,497 |
| 40 | 35 | 6,958 |
These figures highlight the affordability of the plan for individuals of different ages and policy terms.
Example Scenarios
Example 1: Policy for a 30-Year-Old
- Policy Term: 20 years
- Basic Sum Assured: ₹3,00,000
- Annual Premium: ₹17,550
| Year | Total Premiums Paid (₹) | Guaranteed Surrender Value (₹) | Death Benefit (₹) | Bonuses @ 4% (₹) | Bonuses @ 8% (₹) |
|---|---|---|---|---|---|
| 1 | 17,550 | 0 | 3,00,000 | 0 | 0 |
| 2 | 35,100 | 26,325 | 3,00,000 | 12,000 | 24,000 |
| 5 | 87,750 | 65,000 | 3,00,000 | 30,000 | 60,000 |
| 10 | 1,75,500 | 1,20,000 | 3,00,000 | 75,000 | 1,50,000 |
| 15 | 2,63,250 | 2,05,000 | 3,00,000 | 1,20,000 | 2,40,000 |
| 20 | 3,51,000 | 3,10,000 | 3,00,000 | 1,80,000 | 3,60,000 |
Example 2: Policy for a 40-Year-Old
- Policy Term: 15 years
- Basic Sum Assured: ₹5,00,000
- Annual Premium: ₹50,000
| Year | Total Premiums Paid (₹) | Guaranteed Surrender Value (₹) | Death Benefit (₹) | Bonuses @ 4% (₹) | Bonuses @ 8% (₹) |
|---|---|---|---|---|---|
| 1 | 50,000 | 0 | 5,00,000 | 0 | 0 |
| 2 | 1,00,000 | 75,000 | 5,00,000 | 25,000 | 50,000 |
| 5 | 2,50,000 | 1,50,000 | 5,00,000 | 62,500 | 1,25,000 |
| 10 | 5,00,000 | 3,25,000 | 5,00,000 | 1,25,000 | 2,50,000 |
| 15 | 7,50,000 | 6,00,000 | 5,00,000 | 2,00,000 | 4,00,000 |
Why Choose LIC’s New Endowment Plan?
- Comprehensive Coverage: Combines life insurance with savings, securing your future and ensuring your family’s financial stability.
- Flexible Premium Payments: Offers multiple modes to align with your financial situation.
- Attractive Bonuses: Provides additional benefits through Simple Reversionary and Final Additional Bonuses.
- Liquidity: Loans help address financial needs during emergencies.
- High Rebates: Encourages larger coverage by reducing premiums for higher sums assured.
LIC’s New Endowment Plan is a thoughtful choice for individuals seeking long-term savings and life insurance. Its flexibility, security, and rewards make it a practical solution for diverse financial goals.
Basic Terms Explained
- Sum Assured: This is the amount of money you or your family will receive if something happens to you (death benefit) or at the end of the policy term (maturity benefit). Think of it as the promised amount.
- Policy Term: This is the number of years for which the policy will remain active. For example, if you choose a 20-year policy term, the plan provides coverage for those 20 years.
- Premium: This is the amount of money you pay to LIC to keep your policy active. You can pay it yearly, half-yearly, quarterly, or monthly, depending on what works best for you.
- Annualized Premium: This is the total premium you would pay in a year, excluding taxes, rider premiums, or extra charges.
- Maturity Benefit: If you survive until the end of the policy term, you will get a lump sum amount that includes the Sum Assured and any bonuses.
- Death Benefit: If something happens to you during the policy term, your nominee (family member or legal heir) will receive the Sum Assured on Death and any bonuses declared.
- Reversionary Bonus: This is a bonus LIC adds to your policy each year based on its profits. It is not paid immediately but is included in the total payout at maturity or death.
- Final Additional Bonus (FAB): This is a one-time bonus that LIC may add to your policy when it matures or in case of death. It is given only if the policy has been active for a long time.
- Surrender Value: If you decide to end the policy before the term is completed, LIC will pay you an amount called the surrender value. This is usually lower than the total premiums you’ve paid.
- Guaranteed Surrender Value: This is the minimum amount LIC promises to pay you if you surrender the policy. It is a percentage of the premiums you’ve paid, depending on how long you’ve held the policy.
- Loan Against Policy: You can borrow money against your policy after it has acquired a surrender value. LIC gives you a loan based on a percentage of this surrender value, which you can repay later.
- Riders: Riders are extra benefits you can add to your policy by paying an additional premium. For example, the Accident Benefit Rider gives extra financial protection if you die or become disabled due to an accident.
- Grace Period: LIC allows you extra time to pay your premium if you miss the due date. This period is usually 30 days for yearly, half-yearly, and quarterly premiums and 15 days for monthly premiums.
- Lapse: If you don’t pay your premium within the grace period, the policy will lapse. This means you lose the benefits of the policy unless you revive it by paying the overdue premium and interest.
- Paid-Up Policy: If you stop paying premiums after a certain period (usually two years), the policy becomes a paid-up policy. It will continue with reduced benefits based on the premiums you’ve already paid.
- Nominee: This is the person you choose to receive the policy benefits (death benefit) if something happens to you.
- Exclusions: These are specific situations where the policy does not provide coverage. For example, most LIC policies exclude suicide within the first year of the policy.
- Rebate: A rebate is a discount on your premium. LIC offers rebates for higher sums assured or if you pay premiums yearly instead of monthly.
