lic new endowment plan | lic new endowment plan 914 surrender value | lic new endowment policy 914

Summary

In this video, Amit Raj Sharma explains the details of LIC's new Endowment Plan 914, covering eligibility, maturity benefits, and death benefits. He walks through the process of calculating the guaranteed surrender value, using an example of a 30-year-old with a ₹10 lakh sum assured and a 21-year policy term. Sharma ji also discusses bonus rates, the guaranteed surrender value factor, and how premiums and bonuses impact the total value. Additionally, he provides guidance on taking a loan against the policy. The video encourages viewers to like, share, and subscribe while offering helpful insights on insurance protection.

Takeaways

• 😀 Guaranteed Surrender Value is only applicable after paying premiums for 2 years.
• 😀 The Guaranteed Surrender Value is calculated by multiplying the Guaranteed Surrender Value Factor with the total base premium (excluding rider premiums).
• 😀 In the example, Mr. A, a 30-year-old, purchased a policy with a ₹10 lakh sum assured and a 21-year policy term.
• 😀 Mr. A pays an annual base premium of ₹45,069, excluding tax, for the LIC New Endowment Plan 914.
• 😀 After 10 years of premium payment, the total base premium paid by Mr. A is ₹450,690.
• 😀 The bonus rate is 4.5% for sums assured above ₹1 lakh, meaning Mr. A accumulates ₹450,000 as bonus after 10 years.
• 😀 The Guaranteed Surrender Value Factor for the base premium is 56.92% after 10 years.
• 😀 The Guaranteed Surrender Value Factor for the bonus is 17.85% after 10 years.
• 😀 The total guaranteed surrender value for Mr. A’s policy is ₹336,857, combining both base premium and bonus values.
• 😀 Policyholders can take a loan of up to 90% of the guaranteed surrender value.
• 😀 The video emphasizes the importance of understanding insurance plans to ensure proper protection, advising viewers to only choose the necessary policy terms.

Q & A

What is the new endowment plan number 914?

The new endowment plan number 914 is a life insurance policy offered by Life Insurance Corporation of India (LIC). It provides various benefits such as guaranteed value, bonuses, and coverage for maturity and death.

What is the eligibility criteria for LIC's endowment plan number 914?

The eligibility criteria for this plan depend on the age of the policyholder and the sum assured. Generally, this plan is available for people aged 18 to 55 years, with a variety of sum assured options.

How is the guaranteed cylinder value calculated?

The guaranteed cylinder value is calculated by multiplying the base premium (excluding any rider premiums) by the Guaranteed Surinder Value Factor (GSVF). This factor varies based on the premium payment term and the number of years the policyholder has paid premiums.

What is the significance of the Guaranteed Surinder Value Factor (GSVF)?

The Guaranteed Surinder Value Factor (GSVF) is used to determine the guaranteed value of the plan after paying premiums for a certain number of years. The GSVF differs for both the base premium and any accumulated bonuses.

How does the bonus rate impact the policy?

The bonus rate determines the additional amount added to the policy based on the sum assured. For the new endowment plan 914, if the sum assured is over ₹1 lakh, the bonus rate is 4.5% for every ₹1000, which contributes to the policy's total guaranteed value.

What happens if the policyholder has paid premiums for 10 years?

If the policyholder has paid premiums for 10 years, they can calculate the guaranteed cylinder value by multiplying the base premium with the GSVF and adding the bonuses accumulated over the years.

How can the bonus be calculated for a policyholder who has completed 10 years of premium payments?

The bonus is calculated by applying the bonus rate (4.5% for a sum assured above ₹1 lakh) on the total base premium. For example, if the base premium is ₹450,690, the bonus after 10 years will be ₹4.5 lakh.

What is the role of the bonus table in calculating benefits?

The bonus table indicates the bonus payable for every ₹1000 of the sum assured. This table helps calculate the total bonus for a policy based on the sum assured and policy term.

How does the policyholder take a loan against the policy?

The policyholder can take a loan up to 90% of the guaranteed cylinder value. This loan amount depends on the guaranteed value and can be used in case of financial emergencies.

What advice does the video offer about insurance policies?

The video advises policyholders to choose the appropriate policy term and coverage based on their needs. It emphasizes the importance of not taking incomplete protection and choosing a term that offers adequate coverage to avoid future losses.