LIC New Endowment Plus - Review - Plan No 835

LIC New Endowment Plus Plan - LIC has launched a new ULIP (Unit linked assurance plan) plan on table which came to effect from 17th August, 2015. The new plan is an Endowment Plan (Plan no. 835) having unique identification number of 512L301V0. Lets understand the Features, Benefits, Advantages, Disadvantages and score for the plan.

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  Eligibility Conditions And Other Restrictions:

(a) Minimum Age at entry - 90 Days (Completed)

(b) Maximum Age at entry - 50 years (nearest birthday)

(c) Minimum Maturity Age - 18 years (Completed)

(d) Maximum Maturity Age - 60 years (nearest birthday)

(e) Policy Term - 10 to 20 years

(f) Premium Paying Term - Same as Policy Term

(g) Premium Amount

Mode Minimum (Rs.) Maximum (Rs.)
Yearly 20,000 No limit
Half-Yearly 13,000
Quarterly 8,000
Monthly (ECS) 3,000

Date of commencement of risk under the plan


In case the age at entry of the Life Assured is less than 8 years, the risk under this plan 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.

For those aged 8 years or more, risk will commence immediately.


Date of vesting:

If the age of the Life Assured is less than 18 years, the policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.


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Premium Allocation Charge

Premium Premium Allocation Charge
1stYear 7.50%
2ndto 5th 5.00%
Thereafter 3.00%

Mortality Charges

The rate of Mortality Charge per annum per Rs. 1000/- Sum at Risk for some of the ages in respect of a healthy life are as under:

Age 25 35 45 50
Rs. 1.23 1.60 3.59 6.18

Policy Administration Charges

1st Year    (0.35% * Instalment Premium* K) OR (Rs.100/-), whichever is lower

2nd Year  (0.25% * Instalment Premium* K) OR (Rs.70/-), whichever is lower

3rd Year 2nd Year charge * 1.03             ( Maximum Rs 145)

4th Year 3rd Year charge * 1.03              ( Maximum Rs 150)

5th Year 4th Year charge * 1.03              ( Maximum Rs 155)

6th Year & ThereafterRs. 52.17 in 6th year escalating at 3% p.a. thereafter              ( Maximum Rs 145)

Where, K is taken as in Table given below:

Mode of premium Payment Yearly Half-Yearly Quarterly Monthly
Factor "K" 1 1.6 2.6 7

Fund Management Charge 

0.70% p.a. of Unit Fund for all the four fund types available under an Inforce policy(Bond Fund, Secured Fund, Balanced Fund and Growth Fund)

0.50% p.a. of Unit Fund for "Discontinued Policy Fund"

Fund Mangement charges are deducted from the NAV directly and hence the NAV is declared after NAV adjustment on daily basis.

Discontinuance Charge

The Discontinuance Charge shall be deducted by cancelling appropriate number of units out of the Policyholder's Fund, if a policy is surrendered or discontinued and is as under:

Where the policy is discontinued during the policy year Discontinuance Charges for the policies having annualized premium up toRs. 25,000/- Discontinuance Charges for the policies having annualized premium aboveRs. 25,000/-
1 Lower of 15% * (AP or FV) subject to a maximum of Rs. 2500/- Lower of 6% * (AP or FV) subject to maximum of Rs. 6000/-
2 Lower of 7.5% * (AP or FV) subject to a maximum of Rs. 1750/- Lower of 4% * (AP or FV) subject to maximum of Rs. 5000/-
3 Lower of 5% * (AP or FV) subject to a maximum of Rs. 1250/- Lower of 3% * (AP or FV) subject to maximum of Rs. 4000/-
4 Lower of 3% * (AP or FV) subject to a maximum of Rs. 750/- Lower of 2% * (AP or FV) subject to maximum of Rs. 2000/-
5 and onwards NIL NIL


AP - Annualised Premium

FV - Policyholder's Fund Value on the date of discontinuance

Other charges in LIC New Endowment Plus Plan

Switching Charges

First 4 switches free and Rs 100 per switch  thereafter

Partial Withdrawal Charge

Rs 100 per partial withdrawal.

Miscellaneous Charge

Rs 50 for all types of alterations in the policy.( example : Change of Frequency, Mode, Etc)


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This plan provides the Fund Value of the policy on the date of Maturity of the policy. If you are not satisfied with the returns on the date of Maturity or if you wish to continue the policy in the fund for some more time after maturity then you may use the settlement option.

You have to intimate one month prior to the date of maturity and can receive the policy money in regular (yearly/ Half-yearly instalments) spread over a period of not more than five years from the date of maturity. There will be no Insurance cover during this period and no charges other than Fund Management Charge shall be deducted.

But still the returns are not guaranteed and is dependent on the market conditions.


This is an Unit linked Insurance Plan. The Death Benefit under this plan is as below. 

Higher of Basic Sum Assured or Policyholder's Fund Value 

Where, Basic Sum Assured is (10 * Annualized Premium) or (105% of the total premiums paid), whichever is higher.

[restab title="Why2Buy"]

  1. Lesser Allocation charges
  2. Less Policy administration charges
  3. Liquidity to withdraw money after 5 years Lock in
  4. Less Fund Management Charges than all the private insurance companies
  5. Minimum Premium Size
  6. Can be fully en cashed after 5 years completion
  7. Lesser Life coverage which means higher investment portion available to invest
  8. Settlement option available
  9. Multiple Fund options Available
  10. Tax benefits under 80c and 10(10d) sections

[restab title="WhyNOTbuy"]

  1. No loyalty Additions Available
  2. Low life coverage, The main benefit of an insurance plan is life coverage which is on a lower side in this plan.
  3. Complicated Charge structure( Not easily understood by normal people)
  4. Cant withdraw money in first 5 years
  5. Returns are not Guaranteed
  6. Even Capital is not Guaranteed
  7. Investment Risk are borne by the customers
  8. No Waiver of Premium options during death.

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LIC New Endowment Plus is a unit linked non-participating endowment assurance plan which offers investment with insurance cover during the policy term. You have a choice of investing premiums in one of the four types of investment funds available. Premiums paid after deduction of Premium Allocation Charge will purchase units of the Fund type chosen. The unit fund is subject to various charges and value of units may increase or decrease, depending on Net Asset Value (NAV).

What You Pay and What You get

Example  : Arun is 30 year old. He buys LIC New Endowment Plus plan with a PPT of 20 years and Premium of  20,000 on his name. His policy benefits are:

                            1. Non Guaranteed Maturity Benefit of

                                Rs  514263 on completion of 20th policy year.(@ 6% Rate of Returns calculated as per IRDA)


  Rs 811897 on completion of 20th policy year.(@ 8% Rate of Returns calculated as per IRDA)

                          2. Life cover of 2 lakh on his life for the next 20 years.

Total Premium Paid         : Rs 400000

Total Benefits Received : Cant be Arrived because it depends upon the market situation on the date of Maturity

This is a newly launched plan and hence no NAV history available. For NAV history of older products of LIC click here

Liquidity-LIC New Endowment plus Plan

  • The policy can be surrendered at any time after completion of 5 policy years without any charges
  • You have partial withdrawal options which gives more liquidity options

Loans under LIC New Endowment plus Plan

Since this is an Unit linked insurance plan and there are no guaranteed amount paid in this plan, loans are not provided.

What happens if you discontinue your premiums?

You can stop paying the premium even after paying 1 year premium. If the premium is stopped in the first five policy years, then the following effect happens to the policy.

  • The Total fund Value on the date of discontinuation will be used to buy units under DISCONTINUED POLICY FUND.
  • You can revive the policy within 2 years from the date of discontinuation.
  • If the premium is discontinued after first 5 years, the policy can be made into paid up condition with reduced risk coverage options.

If You want to surrender the policy 

  • The policy can be surrendered anytime after 5 years after the policy inception.
  • The fund value as on date of surrender is paid to the client without deducting any charges.

For more details on this plan please go through the product benefit illustration.

All the above details are for education purpose only. This post mainly aims at providing the unbiased review about this product. We the are not in favor or against any individual company nor its products. And we are not into any insurance sales, so you can rely on our reviews with guarantee of transparency and maximum benefits to the customers

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