LIC's New Endowment Plus (Plan No. 935): Your Comprehensive Guide to Unit-Linked Growth in Bhadra Tehsil
In the dynamic landscape of Financial Planning in Bhadra, investors frequently seek a sophisticated blend of market-linked capital appreciation and robust life insurance protection. While traditional endowment plans offer guaranteed safety, Unit Linked Insurance Plans (ULIPs) unlock the potential of the capital markets.
As the premier Insurance Advisor Bhadra, Ashuram Insurance Expert brings you this meticulously detailed Pillar Page on LIC's New Endowment Plus (Plan No. 935).
1. What is LIC's New Endowment Plus (Plan 935)?
LIC's New Endowment Plus is classified as a Unit Linked, Non-Participating, Regular Premium, Individual Life Insurance plan. This plan offers investment-cum-insurance cover during the term of the policy, providing a very good combination of protection and long-term savings.
Because it is a ULIP, premiums paid (after the deduction of the Premium Allocation Charge) are utilized to purchase units in a specific investment fund chosen by the policyholder. The Unit Fund is subject to various charges, and the value of the units may increase or decrease depending entirely on the Net Asset Value (NAV) driven by market performance.
2. Eligibility Conditions and Premium Limits
For residents of Bhadra Tehsil managing their portfolios, understanding the strict parameters of their ULIP is crucial for future policy servicing and maturity tracking.
Age and Term Restrictions
| Parameter | Limit / Condition |
|---|---|
| Minimum Age at Entry | 90 Days (Completed) |
| Maximum Age at Entry | 50 years (Nearer Birthday) |
| Minimum Maturity Age | 18 years (Completed) |
| Maximum Maturity Age | 60 years (Nearer Birthday) |
| Policy Term | 10 to 20 years |
| Premium Paying Term | Same as Policy Term (Regular Premium) |
Basic Sum Assured and Premium Limits
The Basic Sum Assured under this plan is strictly 10 times the Annualized Premium. There is no maximum limit on the premium amount, but the minimums are strictly defined based on the payment mode:
| Payment Mode | Minimum Amount |
|---|---|
| Yearly | ₹20,000 |
| Half-Yearly | ₹13,000 |
| Quarterly | ₹8,000 |
| Monthly (NACH only) | ₹3,000 |
Risk Commencement and Vesting
- For Minors (Under 8 Years): Risk commences either on the completion of 2 years from the date of commencement of the policy or on the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier.
- For Age 8 and Above: Risk commences immediately from the date of underwriting acceptance (date of commencement of policy).
- Vesting: If issued on the life of a minor, the policy automatically vests in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age.
3. Comprehensive Benefit Structure
As your dedicated LIC Agent in Bhadra (335501–335511), Ashuram Insurance Expert ensures you fully grasp the exact payouts your family is entitled to.
A. Death Benefit (Family Financial Security)
The payout depends on when the unfortunate event occurs regarding the commencement of risk:
| Condition | Death Benefit Payout |
|---|---|
| Death BEFORE the Date of Commencement of Risk | An amount equal to the Unit Fund Value shall be payable. |
| Death AFTER the Date of Commencement of Risk | An amount equal to the highest of the following three: 1. Basic Sum Assured reduced by Partial Withdrawals made during the 2-year period immediately preceding death. 2. Unit Fund Value. 3. 105% of the total premiums received up to death, reduced by Partial Withdrawals made during the 2-year period immediately preceding death. |
B. Maturity Benefit (Wealth Creation)
On the Life Assured surviving the stipulated date of maturity, an amount exactly equal to the Unit Fund Value shall be payable.
C. Settlement Option (Death Benefit in Instalments)
- The policyholder can opt to receive the Death Benefit in instalments over a period not exceeding 5 years, rather than a lump sum.
- The instalment amount is calculated by dividing the total number of units by the number of instalments, multiplied by the NAV on the instalment payment date.
- During this Settlement period, no charges other than the Fund Management Charge are deducted, but the instalment value remains subject to investment risk (NAV fluctuations).
D. Optional Rider Benefit
Policyholders had the option to avail LIC's Linked Accidental Death Benefit Rider before the policy anniversary on which the age nearer birthday is 55 years (subject to a minimum rider term of 5 years). In case of accidental death, the Accident Benefit Rider Sum Assured is payable in a lump sum.
4. Investment Funds and Navigating Market Risk
A core component of Long Term Investment Plan management is fund selection. LIC's New Endowment Plus offers four distinct fund types, allowing policyholders to switch funds based on their risk appetite.
The 4 Fund Options
| Fund Name (Risk Profile) | Asset Allocation & Objective |
|---|---|
| Bond Fund (Low Risk) | Invests not less than 60% in Government/Corporate Debt and not more than 40% in short-term money market instruments. Nil exposure to equity. Objective: Provide a relatively safe and less volatile investment option. |
| Secured Fund (Lower to Medium Risk) | Invests not less than 45% in Debt, not more than 40% in money market instruments, and 15% to 55% in Listed Equity Shares. Objective: Provide steady income through both equities and fixed-income securities. |
| Balanced Fund (Medium Risk) | Invests not less than 30% in Debt, not more than 40% in money market instruments, and 30% to 70% in Listed Equity Shares. Objective: Provide balanced income and growth. |
| Growth Fund (High Risk) | Invests not less than 20% in Debt, not more than 40% in money market instruments, and 40% to 80% in Listed Equity Shares. Objective: Provide long-term capital growth primarily through equities. |
Fund Switching
Policyholders can switch their entire Fund Value between the four fund types. Within a given policy year, 4 switches are allowed absolutely free of charge. Any subsequent switches in that same year are subject to a Switching Charge of ₹100 per switch.
5. Liquidity: Partial Withdrawals
ULIPs provide strategic liquidity, but with strict rules. You may withdraw units partially at any time after the fifth policy anniversary, provided all due premiums have been paid. For minors, partial withdrawals are allowed only after the Life Assured turns 18.
| Policy Year | Minimum Balance Requirement after Withdrawal |
|---|---|
| 6th to 10th policy year | Balance must be the higher of 3 annualized premiums OR 50% of the Unit Fund value. |
| 11th to 20th policy year | Balance must be the higher of 3 annualized premiums OR 25% of the Unit Fund value. |
*Impact on Life Cover: For a period of two years immediately following the withdrawal date, the Basic Sum Assured is reduced by the exact amount of the partial withdrawal. After two years, the original Basic Sum Assured is restored.
6. Understanding the Charges under Plan 935
Transparency is a hallmark of Ashuram Insurance Expert. Because this is a ULIP, multiple charges are deducted from your premium and fund value:
A. Premium Allocation Charge
Deducted upfront from the premium received before purchasing units:
| Policy Year | Allocation Charge |
|---|---|
| 1st Year | 7.50% |
| 2nd to 5th Year | 5.00% |
| 6th Year and Thereafter | 3.00% |
B. Policy Administration Charge
Deducted monthly by cancelling units:
| Policy Year | Administration Charge |
|---|---|
| 1st Year | Lower of (0.35% * Instalment Premium * Mode Factor) OR ₹100/- |
| 2nd Year | Lower of (0.25% * Instalment Premium * Mode Factor) OR ₹70/- |
| 3rd to 5th Year | Escalates by 3% p.a. from the previous year's charge. |
| 6th Year & Thereafter | ₹52.17 in the 6th year, escalating at 3% p.a. thereafter. |
Other Significant Charges
- Mortality Charge: The cost of life insurance cover, deducted at the beginning of each policy month by cancelling units. It is age-specific and depends on the "Sum at Risk" (the difference between the applicable death benefit and the Unit Fund Value).
- Fund Management Charge (FMC): Deducted daily by adjusting the NAV (0.70% p.a. of the Unit Fund for active funds, and 0.50% p.a. for the "Discontinued Policy Fund").
- Partial Withdrawal Charge: A flat ₹100/- deducted by cancelling units at the time of withdrawal.
- Miscellaneous Charge: A flat ₹50/- levied for alterations like changing premium modes.
- Accident Benefit Charge: If the rider is opted, ₹0.40 per thousand Rider Sum Assured per year.
7. Policy Discontinuance and Surrender Rules
ULIPs have a strict 5-year lock-in period. Understanding this is vital for Tax Saving Planning and liquidity management.
Discontinuance / Surrender DURING the 5-Year Lock-in Period
- If premiums are stopped or the policy is surrendered, the Unit Fund Value (after deducting the Discontinuance Charge) is transferred to the Discontinued Policy Fund.
- The risk cover and rider cover cease immediately.
- The money in this fund earns a guaranteed interest rate (currently 4% p.a.).
- The proceeds from this fund are only payable at the end of the 5-year lock-in period (except in the case of Life Assured's death, where it is paid immediately).
- Discontinuance Charges: Vary based on the premium amount and the year of discontinuance (e.g., dropping to Nil from Year 5 onwards).
Discontinuance / Surrender AFTER the 5-Year Lock-in Period
- Surrender: If you surrender after 5 years, the Unit Fund Value as of the date of surrender is payable immediately, with zero Discontinuance Charge.
- Discontinuance (Non-payment of Premium): The policy converts into a "Reduced Paid-up Policy". The Basic Sum Assured is proportionately reduced based on the number of premiums paid. The policy continues in this reduced status, but rider covers cease. Mortality and administration charges continue to be deducted from the fund.
Secure Your ULIP Portfolio with Ashuram Insurance Expert in Bhadra
Navigating the complexities of a Unit Linked Insurance Plan requires vigilance and market awareness. With LIC's New Endowment Plus (Plan 935) officially discontinued for new sales on January 1, 2025, managing your existing active policy is more critical than ever.
Should you switch your funds from Equity to Debt as maturity approaches? What is the exact impact of a partial withdrawal on your life cover? As the premier LIC Premium Point Bhadra, Ashuram Insurance Expert is fully equipped to answer these questions.
We provide transparent, zero-cost policy reviews for residents across Bhadra (Pin codes 335501–335511). Do not let market volatility or complex charge structures erode your hard-earned wealth.
Optimize Your LIC Portfolio Growth Today
Contact Ashuram Insurance Expert near Ambedkar Chowk, and let us optimize your existing LIC portfolio for maximum growth and absolute security!
- Call / WhatsApp: +91 9799-771-577
- Email: ashurambhadra@gmail.com
- Visit Our Office: Main Bus Stand Road, Near Ambedkar Chowk, Bhadra, Rajasthan, Pin Code - 335501