LIC's New Endowment Plan is a popular insurance product that provides comprehensive life cover along with savings benefits to policyholders. The plan is a traditional endowment policy that offers guaranteed returns and bonuses, making it an attractive investment option for those looking to secure their future financial needs.
The New Endowment Plan provides life cover and savings benefits, with the option to choose a policy term between 12 and 35 years. The minimum sum assured under this plan is Rs 1 lakh, and there is no limit on the maximum sum assured. The policyholder can also opt for regular or limited premium payment modes, making it flexible to suit their financial needs.
One of the significant benefits of the New Endowment Plan is that it offers tax benefits to policyholders. Under Section 80C of the Income Tax Act, premiums paid towards the policy are eligible for tax deductions up to Rs 1.5 lakh. Additionally, the maturity proceeds and death benefits received from the policy are also tax-exempt under Section 10(10D) of the Income Tax Act.
Another significant advantage of this plan is that it provides bonuses to policyholders, which are declared every year. These bonuses are added to the sum assured and accumulate over the policy's term, providing higher returns to the policyholder. Additionally, if the policyholder continues the policy until maturity, they will receive a terminal bonus, which is a lump sum paid along with the maturity benefits.
The New Endowment Plan is open to all individuals aged between 8 and 50 years, and the maximum age at maturity is 75 years. The policy is also open to NRIs and people of foreign origin who reside in India. To apply for the policy, the applicant needs to submit their age proof, address proof, and identity proof along with the application form.
One can apply for the New Endowment Plan both online and offline. To apply for the policy online, the applicant needs to visit the LIC website and click on the 'Buy Policy Online' tab. The website will then guide the applicant through the application process, and the policy will be issued after the applicant completes the payment.
As an example, consider a 30-year-old who wants to secure his financial future by investing in LIC's New Endowment Plan. He chooses a policy term of 20 years and a sum assured of Rs 10 lakh. Assuming he pays an annual premium of Rs 50,000, the policy will provide a guaranteed sum assured of Rs 10 lakh and bonuses declared by LIC every year. Assuming an average bonus of 4 per cent, the policy will provide a maturity benefit of Rs 17.2 lakh, including the terminal bonus of Rs 1.5 lakh. Additionally, if the policyholder dies during the policy term, his nominee will receive the sum assured and accumulated bonuses as death benefits.
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 "LIC new premium endowment plan, investment plan with high returns, Rs 48.5 lakh on maturity, life insurance coverage")
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