LIC New Endowment Plan Calculator & Policy Details

Plan Name: LIC New Endowment Plan

UIN: 512N277V03

Plan Type: Participating, Non-Linked, Individual Life Assurance Savings Plan

If you are looking for a traditional life insurance policy that balances family protection with safe savings, LIC’s New Endowment Plan is one of the most popular choices in India. It is a classic “bundled” plan, meaning it offers a lump sum payout at maturity while keeping your family financially secure in the event of your passing during the policy term.

In this guide, we break down the eligibility, premium calculations, surrender values, and benefits of the New Endowment Plan in simple English.

What is the LIC New Endowment Plan?

The LIC New Endowment Plan is a standard life insurance policy where you pay premiums for a specific period (the Policy Term).

• If you survive the term, you receive a Maturity Benefit (Sum Assured + Bonuses).
• If you pass away during the term: Your nominee receives a Death Benefit (Sum Assured + Bonuses).

Since this is a Participating (Par) plan, LIC shares its profits with you in the form of Simple Reversionary Bonuses and a Final Additional Bonus (FAB), making your returns grow over time.

LIC New Endowment Plan Calculator: How Premiums Work

While exact premiums depend on your age and the tax rates at the time, you can estimate your investment using the official sample illustration provided in the brochure.

Key Factors That Affect Your Premium:

1. Age: Younger applicants pay lower premiums.
2. Sum Assured: The higher the coverage, the higher the premium.
3. Policy Term: Longer terms generally have lower annual premiums.

Sample Premium Illustration

Based on the official brochure for a standard life.

• Age: 30 Years
• Policy Term: 35 Years
• Basic Sum Assured: ₹ 2,00,000

Premium Payment Mode	Premium Amount (Excl. Tax)
Yearly	₹ 6,213

Projected Returns (Non-Guaranteed):

At the end of 35 years, assuming the policy is in force:

• Total Premium Paid: Approx. ₹ 2,17,455
• Maturity at 4% assumption: ₹ 2,80,500
• Maturity at 8% assumption: ₹ 4,91,000

Note: The 4% and 8% are assumed rates of return mandated by IRDAI. Actual returns depend on LIC’s future experience and declared bonuses.

Key Eligibility Criteria

Before buying, ensure you meet the following requirements set by LIC:

Parameter	Limit
Minimum Entry Age	8 Years (Completed)
Maximum Entry Age	50 Years (Nearer Birthday)
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 (Depends on income)

Detailed Policy Benefits

1. Death Benefit (Protection)

If the policyholder dies during the policy term (and the policy is in force), the Nominee receives the “Sum Assured on Death” + Vested Bonuses + Final Additional Bonus (if any).

What is “Sum Assured on Death”?

It is defined as the highest of the following three:

1. Basic Sum Assured.
2. 7 times the Annualised Premium.
3. 105% of all premiums paid up to the date of death.

Instalment Option: The nominee does not have to take the money in a lump sum. The policyholder can choose to have the death benefit paid in instalments over 5, 10, or 15 years.

2. Maturity Benefit (Savings)

If the policyholder survives till the end of the policy term, LIC pays:

Basic Sum Assured + Simple Reversionary Bonuses + Final Additional Bonus (if declared).

Settlement Option: Similar to the death benefit, you can choose to receive your maturity amount in instalments (5, 10, or 15 years) rather than a one-time lump sum, earning interest on the balance.

3. Participation in Profits (Bonuses)

• Simple Reversionary Bonus: Declared annually by LIC. Once declared, it is guaranteed and added to your policy account.
• Final Additional Bonus (FAB): A one-time loyalty bonus paid only at the time of a claim (Maturity or Death) for long-term policies.

Available Riders (Add-On Protection)

You can enhance your coverage by paying a small additional premium for these riders:

1. LIC’s Accidental Death and Disability Benefit Rider: Pays an extra lump sum in case of accidental death.⁶ In case of disability, the Sum Assured is paid in monthly instalments for 10 years, and future premiums are waived.
2. LIC’s Accident Benefit Rider: Pays a lump sum only in case of accidental death.
3. LIC’s New Term Assurance Rider: Increases the death benefit significantly.
4. LIC’s Critical Illness Rider: Covers 15 or 40 major critical illnesses.
5. LIC’s Premium Waiver Benefit Rider: Recommended for minors. If the Proposer (parent) dies, future premiums are waived.

Rebates: How to Lower Your Premium

LIC offers discounts (rebates) for paying yearly or choosing a high Sum Assured.

1. Mode Rebate:

• Yearly Payment: 2% discount on tabular premium.
• Half-Yearly: 1% discount.
• Quarterly/Monthly: No discount.

2. High Sum Assured Rebate:

• SA ₹2L to ₹4.99L: Nil
• SA ₹5L to ₹9.99L: 2.50‰ (₹2.50 per ₹1,000 Sum Assured)
• SA ₹10L and above: 4.00‰ (₹4.00 per ₹1,000 Sum Assured)

Liquidity: Loans and Surrender

Policy Loan

You don’t have to break your policy if you need emergency funds.

• Eligibility: The loan is available after at least one full year’s premium has been paid.
• Loan Amount: Up to 90% of Surrender Value (for in-force policies) and 80% (for paid-up policies).
• Interest Rate: Floating rate (approx. 9.5% p.a. for 2024-25).

Surrender Value

If you stop the policy, you can withdraw the Surrender Value.

• You can surrender anytime after paying one full year’s premium.
• Guaranteed Surrender Value (GSV): A percentage of total premiums paid.
  • Example: If surrendered in Year 2, GSV is 30% of premiums paid. In Year 4, it is 50%.
• Warning: Surrendering a policy usually results in a financial loss compared to the premiums paid.

Tax Benefits

• Premiums Paid: Eligible for tax deduction under Section 80C of the Income Tax Act (up to ₹1.5 Lakh).
• Maturity/Death Benefit: Generally tax-free under Section 10(10D), subject to prevailing tax laws and premium limits (premium should not exceed 10% of the Sum Assured).

FAQ: LIC New Endowment Plan

Disclaimer: This article is for informational purposes only and is based on the official LIC New Endowment Plan Sales Brochure. Insurance is a subject matter of solicitation. Please consult an LIC agent or financial advisor before making a purchase.