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LIC’s New Endowment Plus Plan 735: A Complete Guide to
Benefits, Returns, Charges, and Suitability
Introduction
Life Insurance Corporation of India (LIC) is one of the most
trusted and widely recognized insurance providers in India. Among its wide
range of insurance and investment products, LIC’s New Endowment Plus Plan
735 stands out as a Unit Linked Insurance Plan (ULIP) that combines
life insurance protection with long-term wealth creation.
In today’s financial environment, individuals look for
products that offer both financial security for family and potential
market-linked returns. LIC New Endowment Plus 735 aims to fulfill this dual
objective by providing life cover along with investment in market-linked funds.
This detailed guide explains everything you need to know
about LIC New Endowment Plus Plan 735, including features, benefits,
charges, fund options, returns, tax benefits, and who should invest in this
plan.
What Is LIC’s New Endowment Plus Plan 735?
LIC’s New Endowment Plus (Plan No. 735) is a non-participating,
unit-linked, regular premium endowment plan. It offers:
- Life
insurance coverage
- Market-linked
investment opportunities
- Flexibility
to choose funds
- Long-term
wealth creation
The policyholder’s premium is invested in funds of their
choice after deducting applicable charges. The value of the policy depends on
the Net Asset Value (NAV) of the chosen funds.
Key Highlights of LIC New Endowment Plus 735
- Type
of Plan: Unit Linked Insurance Plan (ULIP)
- Premium
Payment Mode: Regular premium
- Policy
Term: 10 to 25 years
- Minimum
Entry Age: 90 days
- Maximum
Entry Age: 50 years (depending on policy term)
- Maximum
Maturity Age: 75 years
- Life
Cover: Available throughout the policy term
- Investment
Options: Multiple fund choices
- Tax
Benefits: Eligible under Income Tax Act (subject to conditions)
Objectives of LIC New Endowment Plus Plan
The primary objectives of this plan are:
- To
provide financial protection to the policyholder’s family in case
of death
- To
offer market-linked investment returns for long-term financial
goals
- To
encourage disciplined savings over a fixed period
- To
offer flexibility through fund switching and partial withdrawals
Eligibility Criteria
Entry Age
- Minimum:
90 days
- Maximum:
Depends on policy term
- For
10 years: up to 50 years
- For
longer terms: lower maximum age
Policy Term
- Minimum:
10 years
- Maximum:
25 years
Premium Payment Term
- Same
as policy term (regular premium)
Sum Assured
- Based
on age, policy term, and premium paid
- Minimum
Sum Assured is defined by LIC underwriting norms
Premium Details
- Premiums
can be paid yearly, half-yearly, quarterly, or monthly
- Mode
of premium payment impacts the total amount payable
- Premium
allocation varies depending on policy year
Investment Fund Options Under Plan 735
LIC New Endowment Plus offers four different fund options,
allowing policyholders to invest based on their risk appetite.
1. Bond Fund
- Invests
mainly in government and corporate bonds
- Low
risk
- Suitable
for conservative investors
2. Secured Fund
- Mix
of equity and debt
- Moderate
risk
- Balanced
growth approach
3. Balanced Fund
- Higher
equity exposure with some debt
- Moderate
to high risk
- Suitable
for long-term investors
4. Growth Fund
- Invests
primarily in equities
- High
risk
- Suitable
for aggressive investors seeking higher returns
Fund Switching Facility
Policyholders can switch between available funds depending
on market conditions.
- Limited
number of free switches allowed per policy year
- Additional
switches may attract a nominal charge
- Helps
in risk management and portfolio rebalancing
Charges Under LIC New Endowment Plus 735
Like all ULIPs, this plan includes certain charges.
Transparency in charges is important for AdSense approval.
1. Premium Allocation Charge
- Deducted
from the premium before investment
- Higher
in the initial policy years
- Decreases
gradually over time
2. Policy Administration Charge
- Monthly
charge for managing the policy
- Deducted
by cancellation of units
3. Mortality Charge
- Cost
of providing life insurance cover
- Depends
on age, sum assured, and risk profile
4. Fund Management Charge
- Charged
for managing investments
- Capped
as per IRDAI guidelines
5. Switching Charge
- Applicable
beyond free switches
Death Benefit
In case of the policyholder’s death during the policy term,
the nominee receives the higher of:
- Sum
Assured, or
- Fund
Value at the time of death
This ensures financial security for the family even during
market downturns.
Maturity Benefit
At the end of the policy term, the policyholder receives:
- Total
Fund Value, based on NAV at maturity
There is no guaranteed return, as returns depend on market
performance.
Partial Withdrawal Facility
- Allowed
after completion of 5 policy years
- Useful
for emergencies such as education or medical needs
- Subject
to minimum balance conditions
Surrender Value
- Policy
can be surrendered after 5 policy years
- Fund
value is payable after deducting applicable charges
- Early
surrender may result in lower returns
Lock-in Period
- Mandatory
lock-in of 5 years
- No
full withdrawal allowed during this period
Tax Benefits
Tax benefits are subject to prevailing laws under the Income
Tax Act, 1961.
Premium Paid
- Eligible
for deduction under Section 80C, subject to limits
Maturity and Death Benefits
- Generally
tax-free under Section 10(10D), subject to conditions
Tax rules may change, so consulting a tax advisor is
recommended.
Advantages of LIC New Endowment Plus 735
- Combines
insurance and investment in one plan
- Trusted
LIC brand with nationwide presence
- Multiple
fund options to suit different risk profiles
- Fund
switching flexibility
- Partial
withdrawals after lock-in
- Long-term
wealth creation potential
- Tax
benefits under applicable laws
Limitations of the Plan
- Market-linked
returns are not guaranteed
- Charges
can reduce returns in early years
- Lock-in
period of 5 years
- Not
suitable for short-term investors
Who Should Invest in LIC New Endowment Plus Plan 735?
This plan is suitable for:
- Long-term
investors (10+ years)
- Individuals
seeking both life cover and investment
- Investors
comfortable with market fluctuations
- Young
professionals planning for retirement
- Parents
saving for children’s education
- People
who trust LIC over private insurers
Comparison With Traditional Endowment Plans
|
Feature |
ULIP (Plan 735) |
Traditional Endowment |
|
Returns |
Market-linked |
Fixed + bonus |
|
Risk |
Moderate to High |
Low |
|
Transparency |
High |
Moderate |
|
Flexibility |
High |
Limited |
Is LIC New Endowment Plus 735 a Good Investment?
LIC New Endowment Plus 735 can be a good investment if
your goals are long-term and you understand market risk. It should not be
viewed as a guaranteed return product. For disciplined investors who stay
invested for the full term, it may deliver reasonable wealth creation along
with life protection.
Important Things to Consider Before Buying
- Understand
all charges clearly
- Choose
funds based on risk appetite
- Stay
invested for the full policy term
- Do
not expect guaranteed returns
- Review
performance periodically
Frequently Asked Questions (FAQs)
Is LIC New Endowment Plus 735 guaranteed?
No, returns are market-linked and not guaranteed.
Can I switch funds anytime?
Yes, within the allowed free switches per year.
Is this plan good for retirement?
It can be useful if started early and held long-term.
Can I stop premiums?
Non-payment leads to policy lapse, subject to terms.
Final Verdict
LIC’s New Endowment Plus Plan 735 is a balanced ULIP
designed for individuals who want life insurance protection along with
long-term investment opportunities. While it does not offer guaranteed returns,
it provides flexibility, transparency, and the credibility of LIC.
If you have a long investment horizon, moderate to high
risk tolerance, and the discipline to stay invested, this plan can be a
meaningful part of your financial portfolio.
Disclaimer
This article is for informational purposes only. Policy
terms, charges, and tax benefits are subject to change as per LIC and
government regulations. Always read the official policy brochure and consult a
certified financial advisor before making any investment decision.