New Endowment Plan

What this product is

A classic savings-and-protection plan where you pay regular premiums over the years and get a guaranteed lump sum plus bonuses at maturity or on death.

You might need this if…

• You want disciplined, regular saving over 12–35 years that builds toward a guaranteed lump-sum goal, alongside life cover during that time.
• You want a plan that participates in LIC's profits through annual bonuses, rather than one whose returns are entirely fixed at outset.
• You want the flexibility to add optional riders — like critical illness cover or a premium waiver on the proposer's death — onto a base savings plan.
• You want to be able to borrow against the policy's value later if you need liquidity, instead of surrendering it.

How it actually works

• Entry age 8–50 years; policy term 12–35 years; minimum sum assured ₹2,00,000 with no fixed cap.
• On maturity, you receive the basic sum assured plus vested annual bonuses and any final additional bonus declared.
• On death before maturity, the payout is the higher of the basic sum assured or 7× the annualised premium, with a guaranteed floor of 105% of premiums paid, plus bonuses.
• Five optional riders are available: Accidental Death & Disability, Accident Benefit, New Term Assurance, Premium Waiver Benefit, and a Critical Illness Health rider (covering 15 or 40 illnesses).
• Premiums can be paid yearly, half-yearly, quarterly, monthly, or via salary deduction; paying yearly or half-yearly earns a small rebate.
• You can take a policy loan after the first year, and death/maturity benefits can be paid out in instalments over 5, 10, or 15 years instead of a lump sum.

Worked example

Worth knowing before you decide

• The 4%/8% illustrated maturity figures are only assumed-return projections for illustration — not guaranteed; only the basic sum assured plus already-declared bonuses are guaranteed.
• Suicide within 12 months of starting or reviving the policy limits the payout to 80% of premiums paid (or the surrender value, if higher, for a revived policy).
• If you stop paying premiums after at least one full year, the policy becomes 'paid-up' with reduced benefits and no further bonus participation — it doesn't simply lapse to zero, but you lose value versus staying on-premium.

Official source

⌟ Official product brochure

Learn about this category

Read the full traditional life insurance explainer → · See all traditional savings products →