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LIC’s New Endowment Plus (835) – Review, Details, Calculators & Illustrations

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LIC’s New Endowment Plus (Plan 835) – All Details with Premium, Benefit Calculators and Illustrations. New Endowment Plus is Life Insurance Corporation of India’s one and only Unit Linked Insurance Plan (ULIP) available for sale as of now. It offers an opportunity to invest and get protected at the same time. This article is intended to provide you every thing you need to know about this plan.

New Endowment Plus is a ULIP plan – What does it mean ?

The term ULIP stands for Unit Linked Insurance Plans. ULIP is an insurance plan which provides risk coverage to the policy holder along with investment options to invest in qualified financial instruments such as stocks, bonds or money market. In other words, unit linked plans are market linked and aggregates the very best of insurance and investment.

New Endowment Plus – Investment Funds

The plan offers four fund types to choose – Bond Fund, Secured Fund, Balanced Fund and Growth Fund. The risk profile of these four funds are different and is  shown in the chart given below.

New Endowment plus 835 investment of funds

As you can see in the chart, Bond Fund is not having any investment portfolio in equity stocks. And naturally the risk involved in investing in the bond fund is very low. On the other hand in Growth Fund, 40% – 80% amount is invested in equity and the risk is likely to be high. Other funds come in between these two extremes.

Different fund options available for investment can be constructively used to enhance the returns. The technique involved is called Switching of funds. You can read more on  Fund switching techniques for ULIP plans here.

LIC’s New Endowment Plus – Eligibility conditions and restrictions
Eligibility Conditions and Restrictions
1Minimum PremiumYearly20,000
Half Yearly13,000
2Maximum PremiumNo Limit
3Basic Sum Assured10 times Annualised premium
4Age at entry90 days (completed)50 Years (nbd)
5Term of the policy10 Years20 Years
6Maturity Age18 years (Completed)60 years (nbd)
LIC’s New Endowment Plus (Plan 835) – Important points to remember
  • You can choose the premium amount and mode of Payment for the plan.
  • Insurance coverage or Sum Assured of the plan will be based on the premium chosen by you. Basic Sum Assured will be equal to 10 times the annualised premium. Actual sum assured will be higher of fund value or basic sum assured.
  • Charges such as Allocation charges, Mortality charges, Accident Benefit Charge and Policy Administration charges will be applicable on the premium.
  • Units will be allocated based on NAV (Net Asset value) of the fund chosen for investment applicable on the date of allotment.
  • There will not be any bid/offer spread. Which means same NAV will be applicable at the time of allotment and closure of the fund.
  • Maturity Benefit – An amount equal to the policy holder’s fund value will be paid
  • Surrender of the policy – Surrender of the policy can be done only after completion of five years.
Endowment Plus (Plan 835) Premium and Benefit Calculator

Premium and benefit Calculator for Endowment Plus will help you to understand the plan at depth. You can supply your own details like age, premium, term etc. and analyse how much maturity amount and insurance you will get from the plan. You will get a clear idea on the charges levied also. Click on the button given below to open the calculator.

LIC premium and benefit calculator LIC endowment plus 835

Endowment Plus (Plan 835) – Charges Levied
1. Premium Allocation Charge – LIC’s Endowment Plus (Plan 835)

Premium Allocation charge is levied on the premium received and the balance amount available after levying the charge is utilised to purchase units for the policy. The allocation charges are as follows.

PremiumAllocation Charge
1 st Year7.50 %
2 nd to 5 th Year5.00 %
There after3.00 %
2. Mortality charges – LIC’s Endowment Plus (Plan 835)

Mortality charge is the cost of Life Insurance cover and is deducted at the beginning of each policy month by cancelling the proportionate number of units. The charge shall depend on the Sum at Risk which is equal to the difference between the Basic Sum Assured and policy holders fund value.

3. Accident Benefit Charge – LIC’s Endowment Plus (Plan 835)

It is the charge to cover the cost of LIC’s linked accidental death benefit rider. The level annual charge shall be 0.40 per thousand Accident Benefit Sum Assured under the policy.

4. Policy administration charge – LIC’s Endowment Plus (Plan 835)

This charge shall be levied at the beginning of each policy month by cancelling appropriate number of units out of policy holder’s fund.


Policy YearPolicy Administration Charge (per month)Mode of Premium PaymentFactor “K”
1 st Year(0.35% * instalment Premium * K) or (Rs.100) which ever is lowerYearly1
2 nd Year(0.25% * instalment Premium * K) or Rs.70 which ever is lowerHalf -Yearly1.6
3 rd Year2 nd year charge * 1.03Quarterly2.6
4 th Year3 nd year charge * 1.03Monthly7
5 th Year4 th year charge * 1.03“K” is taken as per the chart shown above
6 th Year and
there after
Rs. 52.17 in 6 th year escalating at 3 % thereafter
5. Fund Management Charges – LIC’s Endowment Plus

Fund Management Charge shall be under 0.70 % per annum and is levied at the time of computation of NAV. As the NAV thus declared are Nett of FMC, the customer need not pay this charge from his fund value.

6. Switching of Funds and the charges involved.

Customer can switch from one fund to another any time as per his wish and no charge is levied for the first four switchings within a policy year. Subsequent switches if any shall be subject to a switching charge of Rs. 100 each.

7. Service Tax on LIC’s New Endowment Plus – ULIP Plan

Service Tax shall be applied only on the charges levied for ULIP plans. Current service tax rate after the implementation of GST is 18% and will be applied on the charges applicable on the policy. As the required units are cancelled from the fund, the customer need not pay any increased premium.

LIC’s New Endowment Plus – Example of benefits.

Let us consider an example to get a clear idea about the charges and benefits of the scheme. Let us assume that a person with following details is taking a New Endowment Plus plan.

Parameters assumed for LIC’s Endowment Plus plan illustration
Age30 YearsTerm20 Years
Premium25,000/AnnumInitial NAV10.00
Expected return rate10.5% per annumBasic SA2,50,000

If the details mentioned above are supplied to the Premium and Benefit calculator -New Endowment Plus, we can get all the details of the plan including the charges and expected maturity fund value, which is as follows.

LIC new endowment plus example of benefits

If we go through the illustration we can see that the expected fund value is 14,56,784. You can also see the insurance coverage and accident coverage available on various years.

One thing to note is that this illustration is as per the values supplied by us as shown in the chart. You can give your own details on the calculator to get a customised report. Click the button given below to open New endowment plus premium and benefit calculator.
LIC premium and benefit calculator LIC endowment plus 835

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*The benefit illustrations shown above are just for understanding the basic details of the plan. Please go through LIC web site for more details. The actual benefits under the scheme can vary widely based on the funds selected and the market experiences.

Picture courtesy – Freepik

Anish L J

Anish L J is a 'Financial Planner' and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.