LIC, the largest insurance provider in the country, has introduced modifications to several of its well-known plans. Notably, the entry age for the New Endowment Plan has been lowered from 55 to 50 years. These changes could negatively impact older individuals. Additionally, there has been an increase in premiums. These new regulations will take effect on October 1, 2024. Industry experts suggest that the company aims to mitigate its risk due to the heightened likelihood of mortality after this age.
A recent report indicates that the Life Insurance Corporation of India has also established new surrender rules. The New Endowment Plan-914 not only offers a protection cover but also serves as a savings plan, combining death and maturity benefits. With an endowment plan, policyholders receive life coverage along with maturity benefits, ensuring that the family is compensated in the event of the policyholder’s death during the policy term, in addition to various maturity benefits. As of now, LIC has not commented on these changes.
LIC offers a variety of endowment plans
According to LIC’s official website, the company provides six endowment plans, including the LIC Single Premium Endowment Plan, LIC New Endowment Plan, LIC New Jeevan Anand, LIC Jeevan Lakshya, LIC Jeevan Labh Plan, and LIC Amritbaal. All these plans have been updated effective October 1, 2024.
Premium rates have also seen an increase of approximately 10 percent, along with a rise in the sum assured.
LIC has revised around 32 products in line with the new surrender value rules. Sources indicate that premium rates have increased by about 10 percent, and the sum assured has been raised from Rs 1 lakh to Rs 2 lakh for the New Jeevan Anand and Jeevan Lakshya plans. In contrast, private companies have only raised the premium rates of their endowment plans by 6 to 7 percent.
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