The LIC endowment 914 plan is just like any other life insurance plan, but is non-linked in nature with a certain maturity period. The insured will pay a certain premium and then after maturity or in the event of death will get the decided lump sum amount. The LIC’s new endowment policy can be said to be a risk-free investment with assured return.
There will also liquidity benefits through the loaning facility of the endowment plan. Some of the benefits are:
- Maturity benefit: After all the premiums are paid, and the maturity period is over, the policyholder will get the basic assured amount among the additional bonus and reversionary bonuses.
- Death benefit: In case of death of the policyholder and if all the premiums are paid, then the family member will be paid with the death benefit amount. In this death benefit amount, the “sum assured in case of death” is paid along with additional bonuses and reversionary bonuses. The sum assured in case of death is always higher than the basic sum assured and must be 105% of the amount that is paid in premium.
- Accidental death or disability benefit: This is an additional rider benefit that can be acquired, in case the policyholder pays an additional premium. In case of accidental death, the family will pay the assured accidental death sum along with the basic sum assured. And in the case of disability caused by the accident, the assured accident benefit will be paid for 10 years in monthly installments. Also, the accident benefit premium and the basic premium will be waived.
An additional bonus is the type of bonus which is declared on the policy term in the very year in which the policy will be claimed. Also, the reversionary bonuses are the participation in profits benefits that is decided by the corporation.