LIC New Endowment Plan Review
Life Insurance Corporation launched the LIC New Endowment Plan (Table 814) on 3rd January 2014. LIC Plan no 814 was a simple investment plan with high bonus and liquidity facility incorporated. Under this LIC Endowment Plan 814, the insured have to pay the premium for the entire policy tenure and with-profits Endowment Assurance Plan. The New Endowment policy also provides a healthy amount which can be used to fulfill financial requirements such as higher education of the children and marriage.
LIC Policy 814 can be taken for anyone whose age is between 8 to 55 years and can be continued till 75 years old. The Unique Identification Number (UIN) of this policy is 512N277V01. This UIN should be quoted in all relevant documents provided to the policyholders. The Key features, Eligibility Conditions, Benefits, Rebates, etc. of LIC’s Single Premium Endowment Plan are mentioned in detail below.
What are the Features of LIC Plan 814?
- New Endowment Plan with guaranteed returns and bonus.
- Large Sum Assured Rebate is available.
- Low premium when compared with other endowment plans.
- Double Accident Benefit with Rider.
- Premium payment modes are available in Yearly, Half Yearly, Quarterly, and Monthly modes.
- High Bonus, High Liquidity, and Saving point.
- Optional Benefit of Accidental Death and Disability Benefit Rider is available for this LIC New Endowment Plan.
- Sum Assured + Bonus shall be payable on Maturity or earlier Death.
LIC New Endowment Policy Eligibility Conditions
| S.No |
Eligibility Conditions & Restrictions |
Details |
| 1. |
Minimum Age of Entry for Life Assured |
8 years (Completed) |
| 2. |
Maximum Entry Age |
55 years (Nearest Birthday) |
| 3. |
Minimum Policy Term |
12 years |
| 4. |
Maximum Maturity Age |
75 years (Completed) |
| 5. | Minimum value of Basic Sum Assured | Rs. 1,00,000 |
| 6. | Maximum value of Sum Assured | No Limit |
| 7. | Mode of Premium Payment | Yearly, Half Yearly, Quarterly, and Monthly |
| 8. | Maximum Policy Term | 35 years |
| 9. | Policy Revival | within two years |
NOTE: The Basic Sum Assured will be in multiples of Rs. 5,000.
Benefits of New Endowment Plan (Table 814)
The Benefits of LIC New Endowment Plan are
Death Benefit:
In case of unfortunate death of the policyholder during the policy term, the nominee will receive the Death Benefit as
Death Benefit = Sum Assured on Death + Simple Reversionary Bonus + FAB (final additional bonus).
- Sum Assured on Death is higher of basic sum assured or 10 times of annualized premium.
- Death benefit shall not be less than 105% of total premiums paid as on date of death.
Maturity Benefit:
If the insured survives until the end of the policy term, the Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Addition Bonus shall be payable.
Participation in Profits:
The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation.
Final Additional Bonus:
Final Additional Bonus may also be declared under the policy which will be payable on the expiry of the policy term or earlier death. However, the policy has run for a specified minimum term.
Surrender Value:
The Policy can be surrendered at any time during the policy term provided at least three full years premium have been paid.
- Guaranteed Surrender Value
- Guaranteed Surrender Value shall be a percentage of total premium paid excluding any extra premiums and premiums for riders if any opted.
- The Percentage of GSV depends on the policy term and policy year in which the policy is surrendered and enclosed.
- Surrender Value of vested simple revisionary bonus shall also be payable which is equal to vested bonuses multiplied by Surrender value factor applicable to vested bonuses.
- Special Surrender Value
- The Special Surrender Value will be the discounted value of the sum of the Paid-up Sum Assured and Vested Simple Revisionary bonuses.
Grace Period: A Grace Period of not less than 30 days will be allowed for the payment of rider premium in yearly, half-yearly or quarterly modes. For monthly rider premiums, the grace period is within 15 days.
Cooling-off Period or Free Look Period: The Policyholder may return the policy to the corporation within 15 days if he/ she was not satisfied with the Terms and Conditions. The count should be from the date of receipt of the plan.
Rebates of New LIC Endowment Policy
Mode Rebate:
| Mode | Percentage |
| Yearly mode | 2% of tabular premium |
| Half-yearly mode | 1% of tabular premium |
| Quarterly and Monthly mode | NIL |
High Basic Sum Assured Rebate:
| Basic Sum Assured | Rebate |
| Rs. 1,00,000/- to Rs. 1,95,000/- | NIL |
| Rs. 2,00,000/- to Rs. 4,95,000/- | 2.00 % Basic Sum Assured |
| Rs. 5,00,000/- and above | 3.00 % Basic Sum Assured |
Corporation Employees Insurance Scheme (CEIS) Rebate:
LIC New Endowment Policy completed under CEIS (Corporations Employee Insurance Scheme) will be eligible for this CEIS Rebate as a percentage of tabular premium of Basic Plan as well as AD&DB Rider Premium.
| Policy Term | % of Tabular Premium of basic plan as well as AD&DB Rider premium |
| 12 to 14 years | 5% |
| 15 years or more | 10% |
Commission to Intermediaries and Credit to Development Officers:
Agents and Corporate Agents:
| Policy term | 1st year | 2nd and 3rd-year | Subsequent years |
| 12 to 14 years | 20% | 7.5% | 5% |
| 15 years and above | 25% | 7.5% | 5% |
| Bonus Commission: 40% of 1st year Commission | |||
Insurance Brokers:
| Premium paying term | 1st year | 2nd and 3rd year | 4th to end of the term |
| 12 to 14 years | 25% | 5% | 5% |
| 15 years and above | 30% | 5% | 5% |
| No Bonus Commission for brokers | |||
Development officers (DO’s) Credit:
| Premium Paying Term | Credit |
| 12 to 14 years | 60% |
| 15 years and above | 100% |
Riders for LIC Endowment Plan 814 (Optional Benefits)
Riders are the optional benefits offered which can be added to savings plans, and the insured can enjoy the benefits of both protection and savings. These can be availed by paying the additional premium. Accidental Death and Disability Benefit Rider is the optional rider available under this LIC New Endowment Plan.
LIC’s Accidental Death and Disability Benefit Rider
LIC’s Accidental Death and Disability Benefit Rider (AD & DB) is an optional rider that can opt for at any time within the premium paying term. The UIN for this rider is 512B209V01. If there are more policies than one and the total accident benefit exceeds Rs. 50 Lakhs then the benefits are applicable to first Rs. 50 lakhs Sum Assured.
Eligibility Conditions of Accidental Death and Disability Benefit Rider
| S.No |
Eligibility Conditions & Restrictions |
Details |
| 1. |
Minimum Age of Entry for Life Assured |
18 years (Completed) |
| 2. |
Maximum Age of Entry for Life Assured |
55 years (Nearest Birthday) |
| 3. |
Maximum Cover Ceasing Age |
70 years (Nearest Birthday) |
| 4. | Minimum Accident Benefit Sum Assured | Rs. 1,00,000 |
| 5. | 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 |
New Endowment Plan Maturity Calculator
LIC New Endowment Plan Calculator is used to calculate the premium amount in Yearly, Half Yearly, Quarterly, and Monthly modes. Through LIC New Endowment Policy Maturity Calculator, you can calculate the Premium amount that has to be paid to get all the benefits available under this policy. The data required for calculating premium rates using LIC Plan 814 Premium Calculator are Name, Email-Id, Age, Term, Sum Assured, etc.
LIC 814 New Endowment Plan Buying Procedure
The Buying process of LIC New Endowment policy is very simple if you have all the information regarding documents with you. Life Assured can buy the LIC Plan 814 either by visiting the direct website or by approaching the nearest LIC Branch Office. You have to choose the premium payment mode and pay the premium by cheque or DD or using net banking.
The Documents required for buying process of LIC New Endowment Plan are
- Proposal Form.
- ID proof number.
- Address for communication.
- Bank account number and IFSC code.
- Annual Income details, etc.
Requirements for Claiming LIC Endowment Policy 814
The Claimant should submit the following documents while lodging the claim in case of death of the Life Assured.
- Duly filled claim form.
- Original Policy Document.
- NEFT form.
- Identification Proof.
- Death Proof.
- Proof of Accident/ Disability.
- School/ College/ Employer’s Certificate.
- Medical treatment documents before death, etc.
Additional Information about LIC’s New Endowment Plan
- Paid-Up Value: If the insured have paid the premium at least three years and any subsequent premiums have not been duly paid, then this policy shall not be wholly void, but shall subsist as a Paid-up policy.
- Paid-Up Value = Basic Sum Assured * (No. of Premiums Paid/ Total no of Premiums payable).
- Housing Loan Surety: Housing Loan Surety is available for this New Endowment Policy.
- Loan Facility: Loan facility is available under this policy after payment of premiums for at least three years. The rate of Interest to be charged for the loan amount would be determined by the corporation from time to time.
| Policy Term | % for Inforce Policies | % for Paid-Up Policies |
| Upto 23 | 90% | 80% |
| 24 to 27 | 80% | 70% |
| 28 to 31 | 70% | 60% |
| 32 to 35 | 60% | 50% |
- Policy Revival: If the premium was not paid within the grace period, then the policy will lapse. The Lapsed policy may be revived during the lifetime of the Insured but within a period of 24 months from the date of first unpaid premium.
- Taxes: The amount of tax payable by the policyholder on premiums including extra premiums and rider premiums, if any shall be payable. The amount of tax paid shall not be considered for the calculation of benefits payable under this LIC New Endowment Plan.
- Back Dating Interest: The policies can be dated back to the same financial year. The period upto 14 days is to be ignored and 15 days or more is to be rounded to a month for this calculation.
- Policy Stamping: 20 paise per thousand of Sum assured will be the Charges for policy stamping under this plan.
- Assignments/ Nominations: For this LIC Plan 814, Assignments or Nominations should be made at the proposal stage as per Section 39 of Insurance Act, 1938.
- Proposal Form: Proposal Forms no. 300 and 340 may be used under this plan but may subject to change.
Exclusions
Suicide Clause: The Policy will become void if the life assured commits suicide within one year from the date of commencement of risk or the date of revival. An amount equal to 80% of premiums shall be paid excluding any taxes, rider premium, and extra premium.
FAQ’s of LIC India New Endowment Policy
1. Is there any loan facility available for this LIC New Endowment Plan?
A. Loan Facilities are available as per the terms and conditions of the corporation. The Loan can be availed for at least three full years.
2. What are modes of paying the premium for LIC Plan 814?
A. The method of payment available under this LIC New Endowment Plan is Yearly, Half Yearly, Quarterly, and Monthly.
3. How to revive a Lapsed Policy?
A. The Lapsed policy may be revived during the lifetime of the Insured but within a period of 2 years from the date of first unpaid premium and before the date of maturity.
For more information regarding various LIC Endowment Plans, refer and bookmark our site www.policybook.in