New Endowment -814 of LIC, is a basic Life Insurance plan which provides sufficient life cover during policy's term and after maturity this plan offers a vigorous amount which can be used to fulfill financial requirements like children's higher education and retirement benefits. This is a non-linked plan with perfect combination of protection and saving. This plan also takes care of liquidity needs through its loan facility.
1. Death benefit:
In case of death of the policy holder during the term, provided that all the premiums have been paid, the "Sum Assured on Death"and vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable to the nominee. The "Sum Assured on Death" is defined as higher of Basic Sum Assured or 10 times of annual premium. This death benefit shall not be less than 105% of all the premiums paid as on date of death.
Maturity Benefit: This is the Basic Sum Assured paid on maturity of the plan. If there is a vested simple reversionary bonuses and Final Additional bonus then that sum total shall be payable in lump sum on surviving policy holder in the end of the policy term, provided all due premiums have been paid.
Participation in Profits: The policy shall always be a part of the profits of the LIC and shall be eligible to receive Simple Reversionary Bonuses declared by the Corporation, provided the policy is in full force.
Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity, provided the policy has run for certain minimum term.
LIC's Accidental Death and Disability Benefit Rider: LICs Accidental Death and Disability Benefit Rider is available to all policy holders by payment of additional premium.
If there is an accidental death, the Accident Benefit Sum Assured will be payable as lump sum along with the death benefit under the basic plan. In case of permanent disability arising due to accident, an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments over 10 years. Also all the future premiums of Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured shall stand waived.