If you are thinking of buying an LIC policy, you should be aware of the recent changes made by the company. Under these changes, LIC has reduced the entry age for its New Endowment Plan from 55 years to 50 years. This decision could prove harmful for older individuals, as they will no longer be able to enter this plan after the age of 50. Additionally, the premium rates have been increased by about 10%, which will add to the financial burden on policyholders.
This rule has been implemented
Let us inform you that LIC has implemented these changes from October 1, 2024. Insurance industry experts say that this step has been taken by the company to reduce its risk, as after this age, the likelihood of an increase in the mortality rate is higher. LIC’s New Endowment Plan-914 not only provides security cover but is also a savings plan. In this plan, payment is made to the family in case of death, and the policyholder receives maturity benefits upon completion of the policy term.
LIC has 6 plans
LIC offers a total of 6 endowment plans, including popular ones like the Single Premium Endowment Plan, New Jeevan Anand, Jeevan Lakshya, Jeevan Labh, and Amritbal. Major changes have been made in all of these plans starting from October 1.
Changes in Surrender Value Rules
Along with this, LIC has also made changes to its surrender value rules, which will apply to about 32 insurance products. Under the new rules, some policyholders may see a reduction in the amount they receive when exiting the plan.
Increased Sum Assured
It is worth noting that LIC has increased the sum assured from Rs 1 lakh to Rs 2 lakh in its New Jeevan Anand and Jeevan Lakshya plans. Meanwhile, private companies have increased their endowment plans by only 6 to 7 per cent, making their premium rates comparatively lower.
Impact on the Elderly
The company has not yet given any official statement regarding these changes. However, these changes are particularly important for elderly individuals, as they may affect their insurance protection.