Skip to main content

LIC New Endowment Plus Review

 

LIC is going to launch the new ULIP Plan. This is called as New Endowment Plus (Table No.835). After the IRDA regulations, LIC closed all its existing ULIP Plan (including the Endowment Plus Plan). Now, after a long wait, it is launching ULIP.

LIC's Endowment Plus-835

As I said above, this is the ULIP (Unit Linked Insurance Plan). This is insurance cum investment plan, where the money will be invested in an equity market.

Features-

# This is a ULIP (Unit Linked Insurance Plan).

# You can choose your premium amount.

# Your insurance coverage will be based on the premium amount you have chosen.

# LIC charges premium allocation amount. This is 7.5% in the first year, 5% from 2nd to 5th year, and 3% after the 6th year.

# LIC charges Fund Management Charges too. This will be 0.70% per year on unit fund.

# If you discontinue then LIC penalizes you by charging 0.50% per year on unit fund.

# The rest of the amount will be invested in the market based on the option chosen by an investor (confused to say between investor or policyholder).

 

Units will be allocated based on NAV (Net Asset Value) of the respective fund applicable on the date of allotment.

# NAV will be calculated on a daily basis, based on the performance of the fund and fund management charges.

Eligibility of LIC's New Endowment Plus (Table No.835)

  • Minimum age at entry is 90 days.
  • Maximum age at entry is 50 years.
  • Policy Term is 10 to 20 Years.
  • Minimum Annual Premium is Rs.20, 000.
  • Maximum Annul Premium limit-NO LIMIT.
  • Basic Sum Assured mean higher of 10 times of annual premium and 105% of total premiums paid.

What is the maturity benefit?

An amount equal to Policyholder's Fund Value will be payable.

What is the commencement of Risk?

  • If entry age is less than 8 Yrs-Date of Purchase+2 Years.
  • If entry age is more than 8 Yrs-Immediately.

What is the death benefit under this plan?

 
  • Death before commencement of Risk:-

An Amount equal to policyholder fund value shall be payable immediately on the date of receipt of intimation of death with a death certificate.

  • Death after commencement of Risk:-

Once the commencement of risk cover, higher of Basic Sum Assured OR Policy Holder's Fund Value will be payable.

What riders available in this plan?

This plan offers you accidental rider by paying an extra premium. Few eligibility criteria for this rider is as below.

  • Minimum Age 18 Years.
  • Maximum age 55 Years.
  • Minimum Accidental Rider Benefit will be Rs.10, 000.
  • Maximum Accidental Rider Benefit will be 10 times of your annual premiums. (The maximum limit including all LIC policies must not be more than Rs.100 lakh.

As of now, I have this much information only. I will update the rest of features as and when I get.

Switching of Fund-

Only four switches are free. Later on you have to Rs.100 per switch.

Top-Up Option

This plan does not offer any top-up facility.

Loan Facility-

This plan does not offer loan facility.

What are surrender conditions?

  • You can surrender after completion of 5 years.
  • Fund value as on surrender date will be payable.

Whether you go for this ULIP Plan?

Strictly NO… Why? The reasons are as below.

1) Expenses-The fund average expenses will be around 3% (along with that there are fund management charges of 0.7%), which I feel costlier when we have well-established mutual funds offering your equity investments at around half of this expense.

2) No Track Record-We do not know how the fund managers perform as we don't have historical data. Hence, the risk of underperforming is more.

3) Liquidity-Liquidity is an issue with ULIPs as there will be some charges or penalty (I will update you about surrender charges once I get a clear picture of this product).

4) Insurance coverage-Ideally, who buy a such Insurance+Invesment product ignore the actual insurance requirement. They look for premium affordability and based on that they select the sum assured. Hence, they forget the real requirement of life insurance in one's life. The ideal requirement of life insurance must be around 15-20 times yearly income.

5) Death Benefit-Let us say you opted Term Insurance and started to invest in equity mutual fund or debt product based on the risk appetite. What your nominee will receive in case of death? They receive the sum assured amount of term insurance and the value of the investment you did (either in equity or in debt).

But in this plan, HIGHER of Basic Sum Assured OR the Fund Value. Therefore, I feel this as the biggest disadvantage.

These are the features, benefits, and details available as of now

-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now