LIC Endowment Assurance Policy (Plan No.14) Details

An insurance policy is one of the best ways to safeguard yourself and those who are dear to you. The Life Insurance Corporation of India (LIC) offers a number of life insurance policies to meet different individual needs. However, one of the favourites of the Indian population and most bought is the LIC Endowment Assurance Policy (Plan No. 14). This is the most suitable option if you are looking for a policy that offers life coverage along with maturity benefits. Again, it is quite affordable, which makes this plan an ideal choice if you are on a budget.

In this blog, we will break down the LIC Endowment Assurance Policy (Plan No. 14) in detail. Let's look at the benefits, terms and conditions, exclusions and much more! By the end of this post, you will have a good idea of whether this policy is for you or not.

Key Features and Benefits of LIC Endowment Assurance Policy (Plan No.14)

If you are in search of a life insurance plan that acts as a saving tool, the LIC Endowment Assurance Policy (Plan No.14) is one great option that you should not neglect. With that in mind, here are some of the key advantages: 

1. Guaranteed Returns: This plan provides 100% assured returns upon policy maturity. This means that, at the end of the policy term, the policyholder will receive a specific amount as promised. No worrying about any risks attached to market ups and downs.

2. Rider/ Add-On Perks: Extra protection never hurts, right?

The policyholder can add riders to the LIC Endowment Assurance policy to get more protection, such as 

• Accidental Death Cover for death caused by accident, 
• Cover against Critical Illness in case of severe illnesses diagnosis, and more.

3. Life Coverage: In addition to savings, it is also a great life insurance coverage. In the event of the insured's death within the policy duration, the sum assured is paid to his or her family to cover them financially.

4. Tax Benefits: Everyone enjoys saving on taxes. Under this policy, the premiums paid qualify for Section 80C tax deductions, and the death benefit payable to the deceased's family member is tax-exempt, too!

5. Surrender Value: In case the insured decides to end the LIC Endowment Assurance plan before the term expiry, they’ll get the “surrender value” as a benefit. (The plan must be active for a minimum period of three years.) 

Surrender Value is of two types, i.e., 

• Guaranteed Surrender Value (GSV): GSV is typically fixed, i.e., 30% of the basic premiums paid. It is worth remembering that the first year’s premiums are not included. 
• Special Surrender Value (SSV): SSV is generally more than the GSV but it is not necessary that the policyholder will get a special surrender value. It completely depends on the company's terms and other factors.

LIC Endowment Assurance Policy brings the best of both worlds: life insurance and assured savings all come under one cover.

Eligibility Criteria of LIC Endowment Assurance Policy

The eligibility criteria for the LIC Endowment Assurance Policy are laid down in a lenient manner so that the maximum number of people can take advantage of it. There are different plans under this one policy.

The eligibility criteria for different plans under LIC Endowment Assurance Policy are listed below:

For Basic Plan

• Minimum age at entry: 8 (years completed)
• Maximum age at entry: 55 years (last birthday)
• Maximum maturity age: 75 years (last birthday)
• Minimum term: 12 years
• Maximum term: 35 years

One must meet the above requirements to opt for the basic plan under the endowment policy. One notable point here is that the minimum sum assured under the basic plan is 100,000 rupees, and there is no set limit for the maximum sum assured. Also, the basic sum assured will be in multiples of 5000 rupees.

Bonus under Endowment Assurance Policy

There are several additional bonuses added to this policy by many insurance companies along with the basic structure of the LIC Endowment Assurance Policy. Specific terms and conditions are inserted by different insurers agreeing to which one can claim the additional bonuses.

Two main divisions of additional bonuses are as follows:

Revisionary Bonus
Revisionary bonus is added to your sum assured annually in percentile manner that one can avail upon the maturity of the plan or death of the insured.

Terminal Bonus
Unlike revisionary bonus, it is added only at the maturity or the death of the insured, whichever comes first.

LIC Endowment Assurance Policy (Plan No.14) - Premium Details

LIC Endowment Assurance Policy (Plan No. 14) is all about convenience. You can choose to pay the premium on an annual, half-yearly, quarterly, monthly or even by way of salary deduction. 

The premium amount varies by age and the chosen sum assured. 

Given below is a table displaying the yearly premiums with varying ages and sum assured for a policy duration of 20 years:

LIC Endowment Assurance Policy (Plan No.14): Policy Terms and Conditions

LIC Endowment Assurance Policy (Plan No. 14) is a simple yet helpful long-term insurance plan with added savings. Let's quickly understand the major terms and conditions.

• Eligibility: This policy is available for individuals aged between 8 years and 55 years.
• Sum Assured: The sum assured under this policy is a minimum of ₹1,00,000, and there are no upper limits!
• Premium Payment: There is flexibility in the payment of premiums: yearly, half-yearly, quarterly, or monthly.
• Policy Term: Choose 15, 20, or 25 years, as per your requirements.
• Grace Period: Did you forget to pay your premium? Don't worry; a grace period of 30 days is provided. Otherwise, the policy will lapse if the premium is still not paid. However, it can be revived by paying the due premium together with accrued interest.
• Loan Facility: Need a loan? After three years, you are eligible to borrow up to 90% of the surrender value of your policy.
• Assignment: The policy can be assigned to other parties if needed.

It is always advisable that you read the policy document carefully and make sure that you understand all of it. If you have any doubts, simply contact your LIC agent or visit the nearest LIC office!

Exclusions Under LIC Endowment Assurance Policy (Plan No.14)

While the LIC Endowment Assurance Policy (Plan No. 14) provides substantial life cover and savings, there are certain exclusions to be noted, especially in unfortunate circumstances such as suicide. 

Death by suicide of the policyholder within 12 months from the issue date of the policy nullifies the payment of the death claim. The insurance company will only refund 80% of the premiums paid so far. 

Any policy that has been revived and the suicide occurs within 12 months of the revival, the insurer shall pay whichever is higher of the most: 

• 80% of the premiums paid till the date of death
• The surrender value is assessed on the date of death. 

In either case, no bonuses or supplementary benefits will be given. 

It should be noted that these are just a few exclusions. There could be several other exclusions, so it is always advisable to go through the policy document before making a purchase. 

LIC Endowment Assurance Policy (Plan No.14): Riders and Additional Benefits

The LIC Endowment Assurance Policy (Plan No. 14) isn't just about basic life cover and savings; it allows further protection to be taken with the help of riders. To put it simply, these riders are additional cover options that you may opt for in your insurance policy for better protection. 

• Accidental Death Cover: This rider provides an additional benefit amount over the sum assured in case the life assured dies in an accident.
• Critical Illness Cover: This rider assists in case the life assured is diagnosed with life-threatening conditions such as cancer, stroke, or renal failure. It provides a lump sum, so one doesn’t have to worry about huge medical bills and can concentrate on getting well.
• Disability Rider: Whether it is a partial or total disability, this rider makes provision for financial support, enabling the policyholder to adjust to living after the disability.
• Hospital Cash Cover: This rider provides a set daily amount for medical expenses incurred while staying in the hospital and also for any expenses after discharge from the hospital.
• Premium Waiver: In case the life assured suffers from terminal illness or permanent disability, this rider waives all further premium payments but keeps the policy in force.

Maturity and Bonus Benefits

• Maturity Benefit: Provided you have finished the policy period, you will receive the sum assured along with bonuses —it is completely free from tax!
• Bonuses: This plan is a "with-profit" policy, meaning you are entitled to bonuses from the profits of LIC. Two types of bonuses are available:
• Reversionary Bonus: This bonus is added every year, increasing the sum assured payable at maturity or in the event of death.
• Terminal Bonus: This bonus is only paid when the policy matures or the policyholder dies.

These riders and bonuses make the LIC Endowment Assurance Policy an excellent investment for the policyholder!

Conclusion

The LIC Endowment Assurance Policy (Plan No. 14) is an excellent choice for you if you want to have some insurance coverage and, at the same time, build a cash value. It is not an expensive plan, and it has quite a number of advantages. However, it is advisable to consider the exclusions rather closely before buying in.

Frequently Asked Questions

Ques 1. How much will I get in return once my LIC Endowment Assurance policy term ends?

Ans. This plan comes with assured returns of 100%, which means that at the end of the policy term, you will receive a particular amount as promised. 

Ques 2. What is Reversionary Bonus? 

Ans. A reversionary Bonus is added every year to your assured sum, increasing the payable at maturity or in the event of death.

Ques 3. How much amount does the beneficiary receive if the policyholder commits suicide?

Ans. Death by suicide by the policyholder within 12 months from the issue date of the policy nullifies the payment of the death claim. The insurance company will only refund 80% of the premiums paid so far. 

Ques 4. Can I get a loan against the surrender value of the LIC Endowment Assurance policy?

Ans. Yes, after 3 years of premium payments, you are eligible to borrow up to 90% of the surrender value of your policy.

Ques 5. What is the minimum sum assured limit in LIC Endowment Assurance policy?

Ans. The value assured under this policy is a minimum of ₹1,00,000, and there are no upper limits!