The new endowment plan from LIC offers the following benefits:
1. Death Benefit
The policy’s beneficiary receives the death benefit in the form of the total sum assured on death plus any simple reversionary bonus or accumulated bonus in the event that the insured person dies while the policy is still in effect, and the policy’s term expires. The basic sum assured or 10 times the annualised premium, whichever is greater, is the sum assured on death. This death benefit must equal at least 105% of all premium payments made as of the date of death.
2. Maturity Benefit
When the policy matures, the policyholder will receive the basic sum insured amount and earned bonuses as a maturity benefit, and the policy’s term will expire if they outlive the duration of the policy.
3. Participation In Profits
The LIC Endowment Plan shares in the company’s profits, and the policy accrues Simple Reversionary Bonuses and Final Additional Bonuses that are determined based on the company’s experience. If the insured receives a death benefit or maturity benefit and the policy has accumulated a specific minimum number of years, a straightforward reversionary bonus is offered to them.
4. Accidental Death And Disability Benefit Rider
In the event of the insured person’s accidental death, the LIC Endowment Plan provides the beneficiary of the policy with an add-on benefit in addition to the standard coverage. The beneficiary of the insurance will get both the base sum assured amount and an additional sum assured amount under the terms of this rider benefit. The policyholder might choose a bigger sum assured and save money by paying premiums yearly or biannually. The premium paid and the maturity proceeds are tax deductible under sections 80C and 10(10D) of the Income Tax Act, which means the insured can save a ton of money on taxes.