New Endowment Plan (Plan No. 814)

New Endowment Plan (Plan No. 814)

This is the most popular form of life assurance since it not only makes provision for the family of the Life Assured in the event of his early death, but also assures a lump sum at any desired age. Being an Endowment assurance plan, this policy is suitable for people of all ages and social groups. This is a savings oriented plan which earns a high bonus. The premium is very low as compared to other policies and returns are high. 

Features 

• Life risk cover for the life insured
• Additional accidental risk cover
• Moderate Premiums
• High bonus
• Savings oriented plan
• The upper limit of additional accidental sum assured is Rs 50 Lakhs only. 

Eligibility Condition:

Minimum age at entry	8 years
Maximum age at entry	55 years
Minimum Term	12 years
Maximum Term	35 years
Maximum age at maturity	75 years
Minimum sum assured	Rs 1,00,000.00
Maximum sum assured	No higher limit

Double Tax Benefit
U/S 80 C : Premiums paid under this plan are eligible for tax rebate

U/s 80C U/S 10(D) : Maturity Returns / Death claim amount is also tax free u/s 10 (D) 

Possible Events during policy duration:-

On Death:

If the policy holder dies during the policy term, his/her nominee will be paid following, after which the policy will terminate. 

1. Basic sum assured or 10 times of the Annual premium (whichever is higher) 

2. Simple Reversionary Bonus 3. Final Additional Bonus (if any) 

On Accidental Death :

In case, the policy holder dies due to an accident, the nominee will get following, after which the policy will terminate.

1. Basic sum assured or 10 times of the Annual premium (whichever is higher)

2. Additional accidental sum assured (maximum upto Rs. 50 Lakhs)

3. Simple Reversionary Bonus

4. Final Additional Bonus (if any) 

On Maturity :
The policy holder will get the following returns at maturity:
1. Basic sum assured
2. Simple Reversionary Bonus
3. Final Additional Bonus (if any) The policy will terminate after this. 

Understand New Endowment Plan with an example 

Mr. Jitender aged 30 years, plans to take New Endowment Plan for the term of 20 years and sum assured of Rs 2,00,000.00 (Rupees Two Lakhs only). He is required to pay an annual premium of Rs 10,230.00 (Rupees Ten Thousand Two Hundred and Thirty only).  

Possible Events 

On Death

If Mr Jitender dies during the policy term, his nominee will receive the Sum Assured i.e. Rs 2,00,000.00 (Rupees Two Lakhs only) + Accrued Bonuses. After this, the policy will terminate.

On Accidental Death: If during the policy term, Mr. Jitender dies due to an accident, his nominee will receive the Basic Sum Assured (Rs 2,00,000.00) + Additional Sum Assured (Rs 2,00,000.00) + Accrued Bonuses. The policy will terminate after this event.

On Survival till maturity:

If Mr. Jitender survives till the end of policy term, he will get the Basic Sum Assured i.e. Rs 2,00,000.00 (Rupees Two Lakhs only) + Accrued Bonuses. The policy will terminate thereafter.