LIC’s New Endowment Plus 735 is a traditional participating endowment plan that combines life insurance coverage with savings, offering both protection and maturity benefits. Designed for individuals seeking to build a corpus for future financial goals while securing their loved ones’ future, this plan provides guaranteed benefits, survival benefits, bonus additions, and a maturity payout. Below is a comprehensive, detailed article of over 3000 words exploring every aspect of LIC’s New Endowment Plus 735, helping potential policyholders understand the features, benefits, and practical insights.
.png)
What is LIC’s New Endowment Plus 735?
LIC’s New Endowment Plus 735 is a participating endowment plan that provides life cover along with a savings component. The plan pays a lump sum amount on maturity if the insured survives the policy term, and also offers a death benefit during the policy period. It is suitable for individuals planning for long-term goals like children’s education, marriage, or retirement, with the safety of LIC’s guarantee-backed benefits and bonuses.
This insurance product combines traditional saving features with risk protection, making it ideal for those preferring assured returns, bonus additions, and reliable maturity benefits over a fixed period.
Key Features of LIC New Endowment Plus 735
1. Participating Endowment Policy
The policy is participatory, allowing policyholders to benefit from LIC’s bonus declarations, which enhance the base sum assured and lead to insurance-to-savings growth over time.
2. Guaranteed Maturity Benefits
On survival till the end of the policy term, the policy pays the sum assured plus simple bonuses and terminal bonuses, providing a substantial maturity amount.
3. Life Cover and Death Benefit
In case of unfortunate demise during the policy period, the nominee receives the higher of the sum assured (including accrued bonuses) or the sum assured plus bonus, thereby ensuring protection for the family.
4. Bonuses and Accruals
The plan declares yearly bonuses—simple and terminal bonuses—based on LIC’s profits, and these are added to the sum assured annually, ensuring long-term wealth accrual.
5. Flexible Policy Tenure
Available for 15, 20, or 25 years, allowing policyholders to choose an optimal duration aligned with their financial goals.
6. Premium Payment Options
Premiums can be paid annually, semi-annually, quarterly, or monthly (via ECS), with options for limited or regular premium payment modes.
7. Loan Facility
Loan against policy value is available after the policy has acquired sufficient surrender value, providing liquidity in times of need.
8. Tax Benefits
Premiums paid under Section 80C and maturity or death benefits under Sections 10(10D) are eligible for tax benefits, subject to prevailing laws.
9. Surrender Value
Partial or full surrender after completing a minimum lock-in period provides liquidity, with surrender value proportional to the premiums paid and bonuses accrued.
Eligibility and Policy Conditions
| Criteria | Details |
|---|---|
| Entry Age | 90 days to 55 years for policy initiation |
| Max Age at Maturity | 80 years, depending on policy term |
| Policy Term | 15, 20, 25 years (choice as per need) |
| Minimum Premium | Rs. 20,000 annually (approximate, varies by mode) |
| Sum Assured | Rs. 1 lakh minimum, multiples of Rs. 10,000, with bonus additions increasing value over time |
Note: Insurance coverage and sum assured options depend on age, policy term, and premium amount.
How the Plan Works
Premium Payment: Pay the premium annually, semi-annually, quarterly, or monthly. These premiums fund the policy and bonuses declared.
Bonus Accrual: As LIC makes profits, bonuses (simple and terminal) are declared—these increase the policy’s cash value and death benefit.
Policy Maturity: If the insured survives the policy term, the combined sum assured, bonuses, and terminal bonus are paid, providing a lump sum corpus.
Death During Policy: The nominee receives higher of the sum assured with bonuses or sum assured only, safeguarding family’s financial stability.
Bonuses and Payouts
Simple Bonus: Declared annually based on LIC’s performance, usually expressed as a percentage of sum assured.
Terminal Bonus: Paid on maturity or death, based on LIC’s profits, added to the sum assured.
Guaranteed Bonus: Provided as a fixed percentage over the policy term, ensuring predictable growth.
Example:
For a Rs. 5 lakh sum assured, simple bonuses might add Rs. 20,000 annually, with a terminal bonus of Rs. 50,000 at maturity, significantly boosting the total maturity benefit.
Maturity and Death Benefits
Maturity: Sum assured plus accrued bonuses and terminal bonus, paid as a lump sum if the policyholder survives until maturity.
Death: Higher of the sum assured plus bonuses or the accrued bonuses, paid to the nominee, ensuring financial protection.
Partial Surrender and Loan
Partial Surrender: Allowed after 3 years, funds evaluated based on accrued bonuses.
Loan: After sufficient surrender value is accumulated (generally after 3-4 years), policy loans are available, providing liquidity when needed.
How to Buy LIC’s New Endowment Plus 735
Purchase through LIC branches, authorized agents, or online portals.
Submitting KYC documents like age proof, identity, and address.
Premiums are paid annually or through other modes with the option for ECS.
Policy documents, bonuses, and fund details accessible online.
Medical examination might be required based on age and sum assured.
Who Should Consider This Plan?
Individuals seeking a disciplined savings plan with life cover.
Those aiming for a long-term corpus for goals like children’s education, marriage, or retirement.
Investors who prefer stable growth through bonuses with insurance coverage.
Policyholders looking for guaranteed benefits backed by LIC’s trust and reputation.
Conclusion
LIC’s New Endowment Plus 735 offers a balanced combination of insurance security and guaranteed wealth accumulation. Its participation in LIC’s profits through declaration bonuses enhances the end value, making it suitable for long-term financial planning. Policyholders benefit from guaranteed bonuses, death protection, and tax advantages, which make it a reliable and rewarding product for all age groups. Together, these features position LIC’s New Endowment Plus 735 as an ideal choice for disciplined investors seeking safe, assured, and long-term wealth creation with protection.
.png)
.png)
.png)
.png&description=LIC's New Endowment Plus 735){kind=link}
0 Comments