IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. THE LINKED INSURANCE PRODUCTS DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICYHOLDERS WILL NOT BE ABLE TO SURRENDER/ WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF FIFTH YEAR.
LIC's New Endowment Plus is a unit linked non-participating endowment assurance plan which offers investment cum insurance cover during the term of the policy. This plan is specially designed for you to provide a very good combination of protection and long term savings and also provides you greater flexibility to build a better life and realise your dreams.
You have a choice of investing premiums in one of the four types of investment funds available. Premiums paid after deduction of Premium Allocation Charge will purchase units of the Fund type chosen. The unit fund is subject to various charges and value of units may increase or decrease, depending on Net Asset Value (NAV).
Payment of Premiums:
You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy.
A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (ECS) premiums.
On death of the Life Assured before the stipulated Date of Maturity provided policy is inforce, then
On death before the Date of Commencement of Risk: An amount equal to the Policyholder's Fund Value shall be payable.
On death after the Date of Commencement of Risk: An amount equal to the higher of Basic Sum Assured or Policyholder's Fund Value shall be payable. Where, Basic Sum Assured is (10 * Annualized Premium) or (105% of the total premiums paid), whichever is higher.
On Life Assured surviving the date of maturity provided the policy is inforce, an amount equal to Policyholder's Fund Value shall be payable.
The policyholder has an option of availing LIC's Linked Accidental Death Benefit Rider (UIN: 512A211V01)
Eligibility Conditions And Other Restrictions:
- Minimum Age at entry - 90 Days (Completed)
- Maximum Age at entry - 50 years (nearest birthday)
- Minimum Maturity Age - 18 years (Completed)
- Maximum Maturity Age - 60 years (nearest birthday)
- Policy Term - 10 to 20 years
- Premium Paying Term - Same as Policy Term
- Premium Amount
- Basic Sum Assured - (10 * Annualized Premium) or (105% of the total premiums paid), whichever is higher.
Date of commencement of risk under the plan:
In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either one day before the completion of 2 years from the date of commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier.
For those aged 8 years or more, risk will commence immediately.
Date of vesting:
If the age of the Life Assured is less than 18 years, the policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.
Investment of Funds:
The allocated premiums will be utilized to buy units as per the fund type opted by the Policyholder out of the four fund types options available. Various types of fund options and broadly their investment patterns are as under:
||Investment in Government / Government Guaranteed Securities / Corporate Debt
||Short-term investments such as money market instruments
||Investment in Listed Equity Shares
||Details and objective of the fund for risk /return
||Not less than 60%
||Not more than 40%
||Not less than 45%
||Not more than 40%
||Not less than 15% &
Not more than 55%
||Steady Income -Lower to Medium risk
||Not less than 30%
||Not more than 40%
||Not less than 30% &
Not more than 70%
||Balanced Income and growth - Medium risk
||Not less than 20%
||Not more than 40%
||Not less than 40% &
Not more than 80%
||Long term Capital growth - High risk
The Policyholder has the option to choose any ONE of the above 4 funds.
Discontinued Policy Fund: The investment pattern of the Discontinued Policy Fund shall be a unit fund with the following asset categories:
- Money market instruments: 0% to 40%
- Government securities: 60% to 100%
Method of Calculation of Unit price:
Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment.There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investment performance and Fund Management Charge of each type of fund and shall be computed as:
Market Value of investment held by the fund + Value of Current Assets - Value of Current Liabilities & Provisions, if any
Number of Units existing on Valuation Date (before creation / redemption of Units)
Applicability of Net Asset Value (NAV):
The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the Corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after such time by the servicing branch of the Corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.
Similarly, in respect of the valid applications received for surrender, partial withdrawal, death claim, switches and in case of complete withdrawal etc. up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, partial withdrawal, death claim, switches and in case of complete withdrawal etc after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable.
In case of revival, NAV as on the date of revival shall be applicable. Where date of revival is the date of adjustment of all due premiums after underwriting acceptance has been received.
In case of discontinuance, as per Para 9 below,wherein the policyholder does not exercise the option within the period of 30 days of receipt of notice then the NAV as on the date of expiry of notice period shall be applicable.
In respect of maturity claim, NAV of the date of maturity shall be applicable.
The timing (presently 3 p.m.) is as per the existing guidelines and changes in this regard shall be as per the instructions from IRDAI.