LIC’s New Endowment Plus (Plan No.835)
LIC’s New Endowment Plus (Plan No.835) is unit link assurance plan, which provide insurance + investment. According to level of risk and expected return, four fund options are available, a customer can opt one the four fund types. The deposited premium will be used to buy units from funds type which are mix of Investment in Government, Government Guaranteed Securities & Corporate Debt, Short-term investments such as money market instruments and Investment in Listed Equity Shares. At the beginning of each month, some units will be used to provide risk cover and rest units will participate in investment.
Fund Types
Following table shows the distribution of premium in to four different fund types. A policy holder can select one of four fund types at a time and switch between fund types from time to time. The level risk and return associated with each fund type is also indicated in the table.
| Fund Type | 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 |
|---|---|---|---|---|
| Bond Fund | Not less than 60% | Not more than 40% | Nil | Low risk |
| Secured Fund | Not less than 45% | Not more than 40% | Not less than 15% & Not more than 55% |
Steady Income –Lower to Medium risk |
| Balanced Fund | Not less than 30% | Not more than 40% | Not less than 30% & Not more than 70% |
Balanced Income and growth – Medium risk |
| Growth Fund | Not less than 20% | Not more than 40% | Not less than 40% & Not more than 80% |
Long term Capital growth – High risk |
Plan Parameters
| Sum Assured | (10 times of Annualized Premium) or (105% of the total premiums paid), whichever is higher |
|---|---|
| Age of Entry | 90 days [Complete] to 50 years [Nearest birthday] |
| Minimum Premium | Rs. 20,000 [ Yearly], Rs. 13,000 [Half Yearly], Rs. 8,000 [Quarterly] and Rs. 3000 [Monthly ECS] |
| Maximum Premium | No Uper limit, Annual premium in multiple of Rs. 1,000 and monthly in multiple of Rs. 250 |
| Policy Term | 10 to 20years |
| Premium Paying Term | Same as policy term |
| Risk commencement [ In case, policy holder is less than 8 years of age] | Either completion of 8 years of age or 2 years from starting of policy |
| Loan | Not Available |
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