LIC has put a new ULIP (unit linked assurance plan) plan on table which will come to effect from 17^th August, 2015. The new plan is an Endowment Plus (Plan no. 835) having unique identification number of 512L301V01.

LIC New Endowment Plus ULIP Plan no. 835

1. LIC's New Endowment Plus plan is a unit linked assurance plan, offering investment-cum-insurance during the term of the policy.

2. This Plan allows policyholder to decide the amount of premium he/she can pay. The amount of cover will be decided according to the premium chosen.

3. A pre-specified percentage shall be deducted upfront from the premium as Premium Allocation Charges. This charge is levied to meet the cost of issuing policy such as distributor fee and cost of underwriting.

4. The balance investible premium will be used to purchase units as per the chosen investment fund by the policyholder. Units will be bought and redeemed based on the Net Asset Value (NAV) as on the date of transaction.

5. Policyholder has to choose anyone fund from the table below:

6. There will be on bid-offer spread that means both bid price and offer price will be same as NAV.

Eligibility for New Endowment Plus

Date of Commencement of Risk:

If the insured person's age is less then 8 years, than the risk will commence either one day before the completion of 2 years from the date of commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier. In case the age at entry of Life Assured is 8 years or more, risk will commence immediately.

Eligibility for LIC Linked Accident Benefit Rider

• The charge of accident benefit rider will be Rs.0.40 per thousand Accident Benefit Sum Assured per policy year.
• It will be paid by redeeming or cancelling equivalent number of units at the beginning of each month out of the Policyholder's Fund Value.
• The accident benefit rider can be opted anytime during the policy term provided 5 years are still pending for maturity.
• This rider will be available only after completion of age of 18 years.

Benefits

Benefits Payable on Death

In the event of death of life assured before the date of maturity, the sum payable would be:

1. On death before commencement of risk

An amount equal to the Policyholder's fund value immediately on the date of receipt of the intimation of death with death certificate.

2. On death after commencement of risk

An amount equal to the higher of

• Basic sum assured (i.e. higher of 10 X Annualized Premium or 105% of total premiums paid); or
• Policyholder's Fund Value

Benefits Payable on Maturity

If life assured survives throughout the policy term, an amount equal to the policyholder's fund value shall be payable. This amount can either be taken at once or in 20 equal installments.

Surrender of Policy

If all the due premiums have been paid and the policy is surrendered, than the surrender value would be:

1. Surrendering before expiry of 5 years:

If policyholder opts to surrender the policy before completion of 5 years of lock-in-period than the Policyholder's Fund Value after deducting the Discontinuance Charge shall be transferred to the Discontinued Policy Fund and shall be paid to the policyholder only after completion of 5 years.

Discontinuance charge:  This charge will be levied by cancelling appropriate number of units out of Policyholder's Fund as on the date of surrender/date of discontinuance of policy. The discontinuance charge applicable is as under:

Discontinued Policy Fund: The investment pattern of the Discontinued Policy Fund shall have the following asset mix:

• Money market instruments: 0% to 40%
• Government securities: 60% to 100%

2. Surrendering after expiry of 5 years

If policyholder opts to surrender the policy after completion of 5 years of lock-in-period than the Policyholder's Fund Value as on the date of surrender shall be payable.

Converting the Policy into Paid-up Policy

If policyholder converts policy into paid-up policy than no premiums shall be payable thereafter and the policy will remain in force but with diminished benefits.

Other Features of New Endowment Plus Plan

1. Switching of Investment Funds

The policyholder is allowed to switch from one investment fund to another anytime during the policy term. But only 4 switches will be offered for free of charge. Any subsequent switching will attract a charge of Rs.100/- per switch.

2. Top-Ups and Increase/Decrease in Benefits

No Top-up premiums or Increase/Decrease in Benefits is allowed in this plan. Only Accident Benefit Rider can be cancelled anytime during the policy term.

3. Partial Withdrawals

After completing lock-in-period of 5 years, policyholder can go for partial withdraw subject to the following conditions:

• In case of minor, partial withdrawal will only be allowed after the age of 18 years.
• Partial Withdrawal may be in form of fixed amount or exact number of units.
• Partial Withdrawal Charges of Rs.100/- flat will be deducted from the Policyholder's Fund Value.

4. Partial Withdrawal may be allowed subject to the minimum balance of

• From 6th to 10th policy year: 3 annualized premiums or 50% of Policyholders' Fund value as on the date of withdrawal, whichever is higher
• From 11th to 20th policy year: 3 annualized premiums or 25% of Policyholders' Fund value as on the date of withdrawal, whichever is higher

5.Reduction in Basic Sum Assured Amount

Basic Sum Assured will be reduced for 2 years to the extent of withdrawal immediately after partial withdrawal is made. On completion of 2 years, the original basic sum assured shall be restored.

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