Overview of New Endowment Plan of LIC of India (814)

New Endowment Plan (814): Poster, Plan details as pension fund age-wise, Plan details term wise, Insurance details year wise and Pamphlet.

Poster:

Plan Details as Pension Fund age-wise

Suppose a person wants to create pension fund of amount 10 Lac at the age of 60 Years from LIC. Then according to the age of person premium amount is shown in the figure and discussed below:

1. Age-25: This person need to invest 492 premium monthly and will get maturity with highest profit ratio of 5.15
2. Age-28: This person need to invest 650 premium monthly and will get maturity with profit ratio of 4.18
3. Age-32: This person need to invest 991 premium monthly and will get maturity with profit ratio of 3.14
4. Age-39: This person need to invest 2058 premium monthly and will get maturity with profit ratio of 2.01

Above discussion clearly shows the advantage of early investment into pension fund.

Plan Details Term wise:

Suppose a person of age 18 Years want to buy life insurance of 2 lac then he/she has 24 options of policy terms as shown in the figure. Some of options are being discussed below:

1. Option-1: Your policy have 35 Years of terms and you are required to pay the monthly premium of 469 (approx) for the year of 35 years with total premium of 1,89,014 (approx). You will get lump amount of 9,96,000 (approx) at the time of maturity.
2. Option-24: Your policy have 12 Years of terms and you are required to pay the monthly premium of 1547 (approx) for the year of 12 years with total premium of 2,13,907 (approx). You will get lump amount of 2,91,200 (approx) at the time of maturity.

You can clearly understand with above discussion that to buy 2 lac sum assured you need to pay less amount for maximum policy term (35 Years) and you will get maturity with profit ratio of 5.27. On the other hand, if you are going to select lowest policy term (12 Years) then you are required to pay three time more premium for same sum assured while you will get maturity with profit ratio of 1.36 time only.

Insurance Details Year wise:

Pamphlet:

Last Updated on 24.12.2019