LIC New Endowment Plan (No. 814) Details
LIC New Endowment Plan is a non-linked life insurance policy that offers guaranteed returns and bonuses. The policy can be availed for a duration of 12 to 35 years. Policy can be taken for anyone between 8 to 55 years of age and can be continued till 75 years of age.
In this plan, a premium needs to be paid for the entire policy tenure. The Sum Assured along with the vested Simple Reversionary Bonus + Final Addition Bonus would be paid to the Life Insured on survival till the end of the Policy Tenure as a Maturity Benefit.
Table of Contents
Key Features of LIC New Endowment Plan 814
The following are the important features of the New Life Insurance Corporation's Endowment policy (No. 814):
- Plan with guaranteed returns and bonus
- Simple Reversionary Bonus is payable on maturity or earlier death
- A large Sum Assured Rebate is available
- LIC’s Accidental Death and Disability Benefit Rider can be taken
Benefits Of the LIC New Endowment Plan 814
There are various benefits of New LIC Endowment plan No. 814 and some of them are mentioned here.
- Death Benefit: In case of death of the Life Insured within the Policy Tenure, the Nominee would be paid the “Sum Assured on Death” along with vested Bonuses as Death Benefit and the policy would be terminated. The Sum Assured on Death has been defined as higher than the Basic Sum Assured or 10 times the Annualized Premium subject to a minimum of 105% of all Premiums paid.
- Maturity Benefit: On survival till the end of the Policy Tenure, the policyholder will Sum Assured + accrued Reversionary Bonus + Final Addition Bonus (if any) as Maturity Benefit and the policy will be terminated.
- Income Tax Benefit: Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C. The Maturity Benefit is also tax-free under section 10(10)D subject to fulfilment of all terms and conditions.
Conclusion
The policy can be surrendered only after it accrues Cash Value after at least 3 years’ premiums have been paid. This percentage will depend on the policy term and policy year in which the policy is surrendered and specified as per the table mentioned.
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