On 9th August, 2015 LIC is going to launch the new ULIP Plan. This is called as New Endowment Plus (Table No.835). After the IRDA regulations, LIC closed all its existing ULIP Plan (including the Endowment Plus Plan). Now, after a long wait, it is launching ULIP.
As I said above, this is the ULIP (Unit Linked Insurance Plan). This is insurance cum investment plan, where the money will be invested in an equity market.
# This is a ULIP (Unit Linked Insurance Plan).
# You can choose your premium amount.
# Your insurance coverage will be based on the premium amount you have chosen.
# LIC charges premium allocation amount. This is 7.5% in the first year, 5% from 2nd to 5th year, and 3% after the 6th year.
# LIC charges Fund Management Charges too. This will be 0.70% per year on unit fund.
# If you discontinue then LIC penalizes you by charging 0.50% per year on unit fund.
# The rest of the amount will be invested in the market based on the option chosen by an investor (confused to say between investor or policyholder). This option is explained as below.
# Units will be allocated based on NAV (Net Asset Value) of the respective fund applicable on the date of allotment.
# NAV will be calculated on a daily basis, based on the performance of the fund and fund management charges.
Eligibility of LIC’s New Endowment Plus (Table No.835)
What is the maturity benefit?
An amount equal to Policyholder’s Fund Value will be payable.
What is the commencement of Risk?
What is the death benefit under this plan?
An Amount equal to policyholder fund value shall be payable immediately on the date of receipt of intimation of death with a death certificate.
Once the commencement of risk cover, higher of Basic Sum Assured OR Policy Holder’s Fund Value will be payable.
What riders available in this plan?
This plan offers you accidental rider by paying an extra premium. Few eligibility criteria for this rider is as below.
As of now, I have this much information only. I will update the rest of features as and when I get.
Switching of Fund-
Only four switches are free. Later on you have to Rs.100 per switch.
Top-Up Option–
This plan does not offer any top-up facility.
Loan Facility-
This plan does not offer loan facility.
What are surrender conditions?
Whether you go for this ULIP Plan?
Strictly NO… Why? The reasons are as below.
1) Expenses-The fund average expenses will be around 3% (along with that there are fund management charges of 0.7%), which I feel costlier when we have well-established mutual funds offering your equity investments at around half of this expense.
2) No Track Record-We do not know how the fund managers perform as we don’t have historical data. Hence, the risk of underperforming is more.
3) Liquidity-Liquidity is an issue with ULIPs as there will be some charges or penalty (I will update you about surrender charges once I get a clear picture of this product).
4) Insurance coverage-Ideally, who buy a such Insurance+Invesment product ignore the actual insurance requirement. They look for premium affordability and based on that they select the sum assured. Hence, they forget the real requirement of life insurance in one’s life. The ideal requirement of life insurance must be around 15-20 times yearly income.
5) Death Benefit-Let us say you opted Term Insurance and started to invest in equity mutual fund or debt product based on the risk appetite. What your nominee will receive in case of death? They receive the sum assured amount of term insurance and the value of the investment you did (either in equity or in debt).
But in this plan, HIGHER of Basic Sum Assured OR the Fund Value. Therefore, I feel this as the biggest disadvantage.
These are the features, benefits, and details available as of now. I will update as and when I get it.
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View Comments
Sir i have started my 835 Lic plant how much i will get after 5 years if i surrender.....
Dear Wangden,
Approach the nearest LIC Branch.
My son is 23 years old and he is a Software Engineer. Please let me know the best LIC policy for good returns and let me know the period of premium paying
Dear Ravi,
Are you LOOKING for INSURANCE or INVESTMENT?
Hi sir,
I've got a lic new jivan anand 200000 rs insurance plan my premium 15500 rs annually for 17 years and my lic advisor told me I've got in my maturity rs 645000 rs and 2lac insurance continue for lifetime and if I wish to surrender my life time 2lac insurance they will give me surrender value of insurance amount two laks it's true. And also get 4lacks !accidental insurance free till age 70 yrars
Dear Sir, on maturity you will get around 360000.you will have a life risk coverage of 2lak till your death or 100th year of age. on accidental death before completion of term your family will get SA2lak+2lak accidental coveage+vested bonus
Dear Muslehuddin,
Please elaborate your calculation on how he will receive Rs.360000? Two lakh coverage is a big one??
Dear Gopal,
But the returns will not be more than Bank FDs also, which I think your agent will never say YOU!!
Sir there is a plan lic 835 new endowment plus if i invest ?50000 yearly for 3 years and don’t pay rest of premium and want to surrender in 5 th year of policy will i get surrender value or not or what i’ll be getting?
Siddarth-Yes, you will get it.
Dear sir, I would like to thank you for providing proper information about the LIC new Endowment plus plan. Sir, if you're interested please illustrate with proper examples, as you did in your previous posts.
Bala-Let me do.
Sir if you want profit then purchase at less price and sell at high price. At present price of property is less. Int.rate is also less. Nav of mutual funds is high. So it is good time to surrender the mutual funds and to invest in property or to invest in j A table no 189 of lic of India under option of return of purchase price. As it provides 7.5%grantees for the whole life and also on the spouse also.+return of purchase price. Thank you.
Dhillon-NAV matters for investors? Redeem from mutual funds and BEST is to invest in property or JA?? Great recommendation with great comparison of asset classes :p
I have taken LIC table no. 835 for yearly approx. 36000.....what returns can be achieved from this plan...
Pls. let me know or i should leave this plan....
Reg
Jugesh Sabharwal
Jugesh-You can expect around 5% to 6% return. If you feel this is BEST return, then continue. Otherwise, serious think of coming out.
Hi,
But now the fund value is 11.43....already grown up 10%....
I dont expect 5 to 6% PA....but how do you expect these returns.....
Jugesh-May I know your calculation method?
Hi,
After years, LIC claims to pay NAV....This policy launched on Aug 2015 with the NAV of 10 rupees, the NAV is Rs. 11.00
I expect after 5 years, i may get the return more than 10%....
Reg
Jugesh
Jugesh-Carry on then :)
Hi,
how do you calculate 5 to 6%......as if get any strong reason to discoutinue....i shall...
Reg
Jugesh
Jugesh-Refer my post "Video tutor-How to calculate LIC policies maturity amount and returns?".
Worst plan ever, complete waste of money. Leave your money in savings account for so 16 years and it will double. Here you just the premium paid back, no capital growth and you end up paying almost 20 times higher for a meager amount of life cover.
LIC agents are all cheaters, they will sell this plan to you by saying absolute lies. Never trust an LIC agent. LIC and IRDA are doing a very very poor job at regulating their agents. Zero integrity levels left in LIC agents. LIC must be having a training plan on how to lie to a customers and not get detected. I have lost all trust in LIC or IRDA or Insurance industry in India as a whole :(
HI! I DONT KNOW WHY YOU PEOPLE ALWAYS CRITICISE LIC POICIES....
5OR 6% IRR IN ULIP ?
AS OF NOW 12% WHICH IS SIMPLY DOUBLE THE FIGURE U EXPECT .I HAVE CALCUALTED IT ON NET PREMIUM AND PRESENT FUND VALUE SO DON'T TELL ME THIS RUBBISH.
AND PROBABLY YOU HAVE MET SOME WRONG PERSON, NOT ALL LIC AGENTS ARE LIKE THAT. KINDLY CHK THE BACKGROUND OF AGENT, I SUGGEST DO BUSINESS ONLY WITH PROFESSIONALS LIKE MDRT AGENTS
HERE IS MY EMAIL ID, IF YOU WANT ANY KNID OF CLARIFICATION YOU CAN SEND YOUR QUERY
vikas.ak.sharma@gmail.com
Vikas-Is MDRT tag guarantees that he does not do miss-selling?? Now coming back to returns, can you show me the IRR rate of each funds of this plan for further discussion?
Please suggest any policy for life and investment purpose.which policy is better life and investment policy cover in one policy or individual.
Vinod-There is no such policy which we say BETTER OR BEST for both LIFE and INVESTMENT. For life, I suggest to go for term insurance. For investment, simply stay away from such policies.
Is there any good single Prem plan that gives more than 7% post tax return? And maturity proceeds is not taxable
SB-What is your requirement? Investment or Insurance?