Everything You Need To Know About LIC's New Endowment Plan

The Life Insurance Corporation of India (LIC) is one of India's biggest life insurance firms, with a history reaching back to 1956. Almost 250 million individuals have put their confidence in the organization as of today. In terms of products, the Life Insurance Corporation of India (LIC of India) provides a diverse selection of insurance policies to meet people's financial needs. The organization offers a variety of endowment programs, each with its own set of perks and features. Consider endowment plans and the services supplied by LIC. This combination offers financial assistance to the family of a deceased policyholder at any time before maturity, as well as a significant lump sum payout to policyholders who live.

The LIC New Endowment plan: What You Should Know

The following is a rundown of everything you need to know about the LIC New Endowment plan:

1. LIC Jeevan Pragati 

This is a with-profit endowment plan, bonus contributions are permitted. Some of the plan's other aspects are as follows:

• Every five policy years, the sum insured increases by a quarter. The bigger sum guaranteed is paid in the event of death.
• The basic sum assured, as well as any earned incentives, are paid out upon maturity.
• A rider can be added to the plan to expand its coverage.
• The technique also incorporates tax advantages. The premiums paid as well as the benefits obtained are both tax-deductible.

2. LIC's Jeevan Labh Plan

This endowment plan also accrues incentives and offers a borrowing option if the policyholder needs money during the policy's term for a financial emergency. Other parts of the proposal include the following:

• Simple reversionary bonuses are paid out over the course of the plan's existence. A final bonus may be granted in addition to the maturity or death payout.
• With the base plan, you may choose between two extra riders.
• Tax deductions are available for premiums paid. Section 80C allows them to be deducted from taxable income up to INR 1.5 lakhs.
• Even the plan benefits are tax-free in the insured's hands.

3. LIC's New Jeevan Anand Plan

New Jeevan Anand, a popular endowment plan, is now available as a participating plan with the following characteristics.

• The standard insurance can be supplemented with an optional rider.
• If the premium is paid annually or semi-annually, a reduction of up to 2% is granted.
• If you have a large sum guaranteed, you may be eligible for a premium reduction.
• Program loans are accessible for the duration of the policy.
• Section 80C provides for premium deductions, which helps to minimise taxable income. The benefits are also classified as tax-free income, which means they are not subject to taxation.
• The LIC Accidental Death And Disability Benefit Rider is a rider that allows you to obtain benefits in the case of an accident.

4. LIC's New Endowment Strategy

This endowment plan is available as a bonus-earning participation plan. The death benefit is paid if the assured dies during the policy term and the maturity benefit is paid if the assured lives to the end of the term. The following are some of the plan's other key components:

• Accidental Death and Disability Benefit from LIC
• A rider can be added to offer accidental death and disability coverage.
• After you acquire the coverage, you can keep it for up to 35 years.
• In the bundle, there are two types of premium discounts. The first pertains to the form of premium payment, while the second pertains to the degree of sum assured chosen.

Rider for LIC's Accidental Death and Disability Benefit

It is a paid optional rider that may be added to your insurance. In the case of accidental death, the Accident Benefit Sum Assured, combined with the death benefit under the standard plan, will be paid as a lump sum. In the case of an accident resulting in accidental permanent disability, premiums for the amount of the Basic Sum Assured equal to the Accident Benefit Sum Assured under the policy will be waived (within 180 days of the date of the accident).

Conclusion

Following a review of the plan's features and advantages, it is clear that the plan is best suited for people seeking a disciplined savings option as well as the benefit of life insurance. With the support of the LIC New Endowment plan, you may define long-term financial goals and begin saving for them in a more systematic manner.

Also read- What Is An Endowment Policy And When Is It Appropriate To Buy One?

Five Benefits Of Purchasing An Endowment Policy