Compare old Endowment Plan 14 to New Endowment Plan no 814

LIC launches New Endowment Plan (Table No 814). As per the rule of IRDA most of the LIC plans are revised.

Below are the list of changes done in new Endowment Plan 814 compared to old Endowment Plan 14.
Endowment Assurance Plan (Table No. 14) New Endowment Plan (Table No.814)
Maturity Benefit Basic Sum Assured along with Vested Simple Reversionary Bonuses and  Final Additional Bonus, if Any. No Change
Death Benefit Sum Assured (SA) along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any. ‘Sum  Assured on Death’ along with Vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
The death benefit  as defined above shall not be less than 105% of total premiums* paid as on the date of death.



Age at entry 12 to 65 years 8 to 55 years
Age at Maturity Maximum  75 years Maximum  75 years
Policy Term 5 to 55 years 12 to 35 years
Premium mode Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS) Yearly, Half-yearly, Quarterly, Monthly (SSS or ECS)
Basic Sum Assured 50,000 and above 1,00,000 and above ( In multiples of 5000)
Rebate
  • 3% of tabular Premium for Yearly premium
  • 1.5% of tabular premium for Half-Yearly premium
  • 2% of tabular premium for Yearly premium
  • 1% of tabular premium for Half-Yearly premium
Loan
  • Available after payment of 3 full years premiums.
  • Loan granted shall be 90% of the Surrender Value in case of inforce policies and 85% of the Surrender Value  in case of Paid-up policies.
  • Foreclosure action shall be  initiated on default of 2 or more half-yearly  loan interest installments.
  • Available after payment of 3 full years premiums
  • The maximum amount of loan that can be granted as a percentage of Surrender Value shall  depend on the Policy Term,
  • Foreclosure action shall not be taken under fully paid-up and inforce  policies even if there is default of loan interest.
Guaranteed Surrender Value (GSV)
  • Available after payment of 3 full years premiums
  • GSV shall be equal to 30% of the total premiums paid less First Year Premium and  extra premium, if any.
  • Available after payment of 3 full years premiums.
  • GSV shall be a percentage of total premiums paid (net of taxes) excluding extra premium, if any and premium paid for riders,if opted for. Examples of GSV factors applicable for total  premiums paid
    Policy Year ~ GSV factor
             3   =   30%
             5   =   50%
           t -1  =   80% (t=Policy Term)



Main Changes
  • A  Policy may be revived within a period of 5 years from the date of first unpaid premium.
  • Taxes, if any , were borne by the Corporation.
  • A  Policy may be revived within a period of 2 years from the date of first unpaid premium.
  • Taxes, if any, shall be applicable at the prevailing rates and borne by the policyholder as per rules.
NO Changes in
  • Back Dating
  • Paid-up Value
  • Grace Period
  • Assignment/Nomination
  • Back Dating
  • Paid-up Value
  • Grace Period
  • Assignment/Nomination

Calculate Premium for Endowment plan

1 comment:

  1. Thank you for sharing such great information.It is informative, can you help me in finding out more detail onEndowment Policy

    ReplyDelete

Powered by Blogger.