Lic New Endowment Plan 814 Review

By | April 26, 2016
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LIC-New-Endowment-PlanLIC New Endowment Plan 814

An introduction to the LIC New Endowment Plan 814 :

LIC New Endowment Plan 814 was initiated on the 3rd of January 2014. LIC New Endowment Policy 814 is an endowment policy wherein the sum assured together with vested simple reversionary bonus & Final additional bonus will be paid to the policy holder, towards the end of the policy tenure.

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New Endowment plan LIC 814 offers voluntary advantage, Accidental Demise & Disability Advantage Rider by payment of extra premium. Lic New Endowment policy also facilitates the liquidity requirements via its loan provision. This plan provides a combination of protection & saving characteristics.

You can make use of Lic New Endowment Plan 814 Calculator to compute premiums & advantages. Lic offers Lic New Endowment Plan Maturity Calculator & Premium Calculator to calculate Maturity advantages & Demise advantages. You can Refer to the Lic new endowment plan 814 premium chart & Lic New Endowment Premium calculator prior to purchasing this plan.

Lic New Endowment Plan Conditions

The main Eligibility Conditions for this plan are mentioned as under :

Entry age : ·         Minimum : 8 years (completed)

·         Maximum : 55 years (nearest birthday)

Maximum Maturity age : ·         75 years (nearest birthday)
Policy tenure : ·         Minimum : 12 years

·         Maximum : 35 years

Premium Payment mode : ·         Annually, Half-annually, Quarterly or Monthly mode (through ECS only or through salary deductions)
Sum Assured : ·         Minimum : Rs.1, 00, 000 /-

·         Maximum : No limit.

·         Sum Assured shall be in multiples of Rs. 5, 000 /-

Documents required for fresh policy : ·         Application form / Proposal form along with photo.

·         Address proof

·         Age proof

·         Medical reports (if required)

 Rebates Under the Lic New Endowment Policy 

Basically, there are 2 kinds of rebates for the basic Lic New Endowment plan, they are mentioned as under :

  1. Mode Rebate
  2. Sum assured Rebate

 Mode Rebate :

Mode Percentage
Annually mode 2 percent of tabular premium
Half-annually mode 1 percent of tabular premium

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  percent Basic Sum Assured
Rs. 5, 00, 000 /- & above 3.00  percent Basic Sum Assured

 Premium & Maturity Calculator for the Lic New Endowment Plan

Now, You can compute the premium & Maturity advantages by means of the Lic New Endowment Policy Premium & Maturity calculator. Policy period, Age & Sum assured are necessary to calculate the premium & maturity advantages.

Advantages of the Lic New Endowment Plan 814

Maturity Advantages:

On continued existence of the Life Assured to the conclusion of policy tenure,

Maturity advantage (Advantages payable on maturity) = Basic Sum Assured + vested Simple Reversionary Bonuses + Final Additional Bonus, if any.

Demise Advantages:

On demise of the Life Assured during the policy tenure,

Demise advantage (Advantages payable on demise) = ‘Sum assured on Demise’ + vested Simple Reversionary Bonuses + Final Additional Bonus, if any.

  • ‘Sum assured on Demise’ is higher of basic sum assured or 10 times of annualized premium.
  • Demise advantage shall not be less than 105 percent of total premiums paid as on date of demise.
  • The premiums stated above rule out taxes, extra premium & rider premiums, if any.

Additional Advantages of the Lic New Endowment Plan

Accident demise & Disability Advantage Rider:

  • Accidental Demise (AD) & Disability Advantage (DA) Rider are obtainable as an optional advantage by payment of additional premium.
  • In case of accidental demise, an extra amount equivalent to Accident Advantage Sum assured is payable together with the demise advantage.
  • In case of accidental permanent disability (within 180 days from the date of accident), an amount equivalent to Accident Advantage Sum assured will be paid in the same monthly installments spread over 10 years.
  • Future premiums for Accident Advantage Sum Assured in addition to premiums for the portion of Basic Sum Assured under the Lic New Endowment plan shall be waived.

Eligibility conditions for Accidental Demise & Disability Advantage Rider:

Entry age : ·         Minimum : 18 years (completed)

·         Maximum : 55 years (nearest birthday)

Maximum Cover Ceasing age : ·         70 years
Minimum Accident Advantage Sum assured : ·         Minimum: Rs. 1, 00 ,000 /-

·         Accident Advantage Sum assured shall be in multiples of Rs. 5, 000/-

Maximum Accident Advantage Sum assured : ·         An amount equivalent to the Sum Assured under the Basic Plan subject to the maximum of Rs. 50 lakh Accident Advantage Sum Assured taking all existing policies of the Life Assured under individual in addition to group schemes including policies with in – built accident advantage taken with Life Insurance Corporation of India & the Accident Advantage Sum Assured under the new proposal into thought.

 Added Information about Lic New Endowment Plan

Grace period for payment of premium :

In Lic New Endowment plan 814, grace period of 1 month but not less than 30 days will be authorized for payment of  annually or half – annually or quarterly premiums & 15 days for monthly mode.

Paid – up Value :

Paid – up Value = Basic Sum assured x (No. of premiums paid / Total no. of premiums payable)

An illustration :

Presume, if you have taken the policy of 1, 00, 000 basic sum assured & Total no. of premiums payable are 20, & if  after 5 full years’ premium have been paid & any following premiums be not duly paid, then in such a case :

Paid – up value = 1, 00, 000 x (5 / 20) = 25, 000

Surrender Value :

Lic New Endowment policy can be surrendered whenever at some stage in the policy tenure, given that at least 3 full years premiums have been duly paid.

Renewal :

In case premiums are not duly paid within the grace period then the policy will lapse. A lapsed policy may be renewed during the lifetime of the life assured, but within a period of 2 successive years from the date of first unpaid premium & prior to the maturity date.

Loan :

Loan facility is obtainable under Lic New Endowment policy.

Suicide clause :

In case the life assured commits suicide before 12 months from the date of beginning of risk, he / she will be returned back with 80 percent of premiums paid exclusive of any taxes & additional premium, if any.

Taxes :

Taxes (if any) must be as per the Tax laws & the rate of tax as applicable from time to time.

Cooling – Off Period :

In case the policy holder is dissatisfied with the “Terms & Conditions” of the Lic New Endowment policy, the in such a case policy may be returned to the company within 15 days from the date of receiving of the policy, stating the cause of objections.

Backdating Interest :

The policies can be easily dated back within the very same financial year.

Policy Stamping :

In New Endowment plan of Lic, stamping charges will be 20 paise per thousand sum assured.

Assignments / Nominations :

Assignments & Nominations are achievable under this Lic New Endowment Policy plan no 814.

An illustration of the Lic New Endowment Plan 

Presume if Viren of age 20 years has chosen the Lic New Endowment plan for Sum Assured of Rs. 6, 00, 000 /- &  for policy tenure of 15 years then,

First Year Premium
Mode of Payment without tax Tax with tax
Annually Premium Rs. 40, 666 / – Rs. 1, 257 / – Rs. 41, 922 / –
Half – Annually Premium Rs. 20, 546 / – Rs. 635 / – Rs. 21, 181 / –
Quarterly Premium Rs. 13, 840 / – Rs. 428 / – Rs. 14, 268 / –
Monthly Premium Rs. 3, 460 Rs. 107 / – Rs. 3, 567 / –
Second Year onwards Premium
Mode of Payment without tax Tax with tax
Annually Premium Rs. 40, 666 / – Rs. 628 / – Rs. 41, 294 / –
Half – Annually Premium Rs. 20, 546 / – Rs. 317 / – Rs. 20, 863 / –
Quarterly Premium Rs. 13, 840 / – Rs. 214 / – Rs. 14, 054 / –
Monthly Premium Rs. 3, 460 / – Rs. 53 / – Rs. 3, 513 / –

Maturity advantage will subsist as Rs. 9, 54, 000 /-

Frequently Asked Questions of the Lic New Endowment policy

Q1. What happens if you stop paying the premium?

A1. If the premiums are not duly paid within Grace Period, the policy lapses. Though, if at least 3 years’ premiums have been duly paid, the policy obtains a Paid up Value for a Reduced Sum Assured but the policy would be entitled for any future regular additions.

Paid – up value = Basic Sum Assured x (Number of Premiums Paid / Total Number of Premiums Payable)

The policy can nevertheless be renewed within 2 successive years from the date of first unpaid premium.

Q2. What happens if you wish to surrender the policy?

A2. Lic New Endowment policy can be surrendered at any time during the policy tenure, given that at least thre3e full year’s premiums have been duly paid. This percentage will rely upon the policy tenure & policy year in which the policy is surrendered & specified by means of the table mentioned.

Q3. What happens if you want a loan against your policy?

A3. Loan can be obtained in the Lic New Endowment policy given that the policy has acquired a surrender value & subject to the terms & conditions.

For further details, please refer the mentioned below official link :

Click here for LIC New Endowment Plan details

 

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