This Article was fact checked and last updated for accuracy on November 9, 2024 by Mani Karthik

Remember when our parents said “LIC policy is must!”?

Well, after returning from Silicon Valley in 2017, I thought I knew better.

Seven years and countless financial planning sessions later, let me tell you why this “boring” plan deserves a second look!

LIC New Endowment Plan – Takeaways ๐Ÿ“

Before we dive into the details, here’s what you really need to know:

  • Traditional endowment plan with bonuses
  • Minimum policy term of 15 years
  • Both maturity and death benefits
  • Loan facility available
  • Premium paying term equals policy term

Want better returns? Check NRE account options.

Core Features and Benefits Analysis ๐Ÿ“Š

FeatureDetailsReal Talk
Entry Age8 to 55 yearsEarlier start = Better rates
Policy Term15 to 35 yearsChoose based on goals
Minimum SAโ‚น1,00,000Go higher if possible

Premium Structure and Calculations ๐Ÿ’ต

AgeAnnual Premium (1L SA)Returns Expected
25 yearsโ‚น4,3205-6% + Bonuses
35 yearsโ‚น4,8905-6% + Bonuses
45 yearsโ‚น5,7605-6% + Bonuses

โ“ FAQ: Why are the premiums higher than term insurance?
Because unlike your gym membership, this one actually returns your money! It’s insurance + savings combined.

Maturity Benefits Breakdown ๐Ÿ“ˆ

Let’s talk real numbers (no marketing fluff here!):

Policy TermTotal PremiumExpected Returns*
15 yearsโ‚น6,00,000โ‚น9-10 Lakhs
20 yearsโ‚น8,00,000โ‚น13-15 Lakhs
25 yearsโ‚น10,00,000โ‚น18-20 Lakhs

*Including current bonus rates

Maximize returns with NRE deposit rates.

Death Benefit and Protection Features ๐Ÿ›ก๏ธ

Benefit TypeAmount PayableAdditional Benefits
Death Sum AssuredHigher of 10x Annual Premium or SA+Accrued Bonuses
Additional RidersVarious OptionsExtra Protection

Loan and Liquidity Features ๐Ÿ’ฐ

Because life doesn’t always follow your financial plan:

FeatureDetailsPro Tips
Loan AmountUp to 90% of Surrender ValueUse as last resort
Interest Rate9.5% p.a.Better than personal loans
Processing Time7-10 daysKeep documents ready

โ“ FAQ: Can I surrender the policy early?
Yes, after 3 years – but like leaving a movie halfway, you’ll miss the best parts (and some money too!)

Check FCNR rates for better returns.

Tax Benefits and Advantages ๐Ÿ“Š

SectionBenefit TypeMaximum Limit
80CPremium Paidโ‚น1.5 Lakhs
10(10D)Maturity AmountFully Exempt

Comparison with Other Investment Options ๐Ÿ“ˆ

ParameterNew EndowmentPPFMutual Funds
Returns5-6% + Bonus7.1%10-12%
Risk LevelMinimalZeroHigh
Insurance CoverYesNoNo

Pro Tips for Maximum Benefits ๐Ÿ’ก

Optimal Policy Term:

  • Age 20-30: Choose 25-30 years
  • Age 30-40: Choose 20-25 years
  • Age 40+: Choose 15-20 years

Premium Payment:

  • Annual over monthly (5% savings)
  • Set up auto-pay
  • Link to NRO account for NRIs

Explore NRI banking options.

Real-Life Success Stories ๐ŸŒŸ

ProfileStrategy20-Year Result
IT Professional25L SA + SIPs42L + Market Returns
Business Owner50L SA + Property85L + Assets
Salaried15L SA + PPF28L + PPF Balance

Verdict: Is LIC New Endowment Plan Worth It? ๐ŸŽฏ

Perfect For:

  • Conservative investors
  • Traditional family goals
  • Long-term planning
  • Tax-saving needs

Think Twice If:

  • Looking for high returns
  • Need short-term liquidity
  • Have limited budget
  • Want pure insurance

โ“ FAQ: Final word – Should I invest in this?
Like mom’s cooking vs. restaurant food – not the fanciest option, but reliable and satisfying in the long run!

Citations and References ๐Ÿ“š

Official Sources:

  • LIC India: https://licindia.in
  • IRDAI Guidelines: https://www.irdai.gov.in
  • Tax Information: https://incometaxindia.gov.in

Financial Analysis:

  • MoneyControl Insurance: https://www.moneycontrol.com/insurance
  • Economic Times: https://economictimes.indiatimes.com/wealth/insure

Disclaimer: Returns mentioned are based on current bonus rates and subject to change.

Got questions? Drop them below!

I reply faster than LIC processes claims (which is actually pretty fast now!) ๐Ÿ˜‰

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Categorized in:

Finance & Banking for NRIs,