LIC New Endowment Plus Plan 835 Calculator
Important Details About LIC New Endowment Plus Plan 835
Before evaluating the LIC New Endowment Plus Plan 835, it is important to understand some key policy provisions and charges:
- Minimum premium requirements vary according to the selected payment mode:
- Yearly: ₹20,000
- Half-Yearly: ₹13,000
- Quarterly: ₹8,000
- Monthly (ECS): ₹3,000
- Premium Allocation Charges were applicable as follows:
- First Policy Year: 7.50%
- Policy Years 2 to 5: 5.00%
- Policy Year 6 onwards: 3.00%
- Fund Management Charges were capped at 0.70% per annum and were reflected in the Net Asset Value (NAV).
- Policy surrender was generally permitted only after completion of the mandatory five-year lock-in period.
- The plan was withdrawn from sale on 1 February 2020 and is no longer available for new purchases.
Overview of LIC New Endowment Plus Plan 835
LIC New Endowment Plus Plan 835 was a Unit Linked Insurance Plan (ULIP) that combined life insurance protection with market-linked investment opportunities. The plan was designed for individuals seeking both insurance coverage and the potential to build wealth through professionally managed investment funds.
Unlike traditional insurance plans, the policy allowed policyholders to participate in market-linked growth while maintaining life insurance protection throughout the policy term.
Introduction and Discontinuation Dates
| Particulars | Date |
|---|---|
| Launch Date | 19 August 2015 |
| Withdrawal Date | 1 February 2020 |
The plan accepted new business only during this period. Existing policyholders continue to receive benefits according to the original policy terms.
Main Features of LIC New Endowment Plus Plan 835
Combination of Insurance and Investment
The plan was structured as a ULIP, where a portion of the premium provided life insurance coverage while the remaining amount was invested in market-linked funds selected by the policyholder.
This approach offered the potential for long-term capital appreciation alongside financial protection.
Multiple Investment Fund Choices
Policyholders could choose among four investment funds based on their risk tolerance and financial objectives.
Bond Fund
- Relatively lower risk profile
- Primarily invests in debt-oriented instruments
- Suitable for conservative investors
Secured Fund
- Lower to moderate risk
- Balanced exposure to debt and selected market-linked assets
- Designed for investors seeking stability with moderate growth potential
Balanced Fund
- Moderate risk profile
- Mix of equity and debt investments
- Suitable for individuals looking for balanced growth opportunities
Growth Fund
- Higher risk exposure
- Greater allocation toward equity investments
- Intended for investors with long-term wealth creation objectives
Diversified Investment Portfolio
Depending on the chosen fund, investments could be allocated across:
- Government securities
- Corporate debt instruments
- Money market securities
- Listed equity shares
This diversification aimed to balance risk and return according to the selected investment strategy.
Fund Switching Facility
One of the attractive features of the plan was the ability to switch between available funds during the policy term.
This flexibility enabled policyholders to:
- Adjust investments according to market conditions
- Align investments with changing financial goals
- Modify risk exposure over time
Eligibility Criteria for LIC New Endowment Plus Plan 835
The plan was designed to accommodate a broad range of policyholders through flexible entry ages and policy terms.
| Eligibility Parameter | Details |
|---|---|
| Minimum Entry Age | 90 Days |
| Maximum Entry Age | 50 Years |
| Minimum Policy Term | 10 Years |
| Maximum Policy Term | 20 Years |
| Minimum Annual Premium | ₹20,000 |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly (ECS) |
| Maximum Maturity Age | 60 Years |
These flexible eligibility conditions made the plan suitable for both young investors and individuals approaching middle age who wanted a combination of insurance and investment benefits.
Why LIC New Endowment Plus Plan 835 Was Popular
The plan gained popularity because it addressed two important financial objectives within a single product:
- Providing life insurance protection for the family
- Offering market-linked wealth creation opportunities
Policyholders who were comfortable with moderate to higher investment risk often considered the plan as a long-term financial planning solution because of its flexibility, fund-switching options, and potential for capital growth.
As a ULIP, the final returns depended largely on the performance of the selected investment funds, making it suitable for individuals seeking investment participation alongside insurance coverage.
Charges and Premium Structure in LIC New Endowment Plus Plan 835
Like most Unit Linked Insurance Plans (ULIPs), LIC New Endowment Plus Plan 835 included various charges that were deducted throughout the policy term. Understanding these charges helps policyholders estimate the actual investment amount and expected returns more accurately.
Premium Allocation Charges
A portion of each premium was deducted before units were allocated to the chosen investment fund. The remaining amount was invested according to the selected fund option.
Mortality Charges
Mortality charges were deducted monthly to provide life insurance coverage. These charges depended on factors such as:
- Age of the life assured
- Sum Assured selected
- Policy duration
Policy Administration Charges
The policy attracted regular administrative charges that were deducted periodically to cover policy maintenance and servicing costs.
Rider Charges
Additional charges were applicable if optional benefits, such as the Accidental Benefit Rider, were chosen under the policy.
Fund Management Charges
Fund Management Charges (FMC) were deducted from the underlying fund before the Net Asset Value (NAV) was declared. These charges covered professional fund management expenses.
Discontinuance and Surrender Charges
If the policy was discontinued or surrendered during the lock-in period, applicable discontinuance charges could be deducted according to LIC’s prevailing rules.
Taxes
GST and other applicable taxes were levied on various policy charges in accordance with prevailing tax regulations.
Understanding the Available Fund Options
One of the major attractions of LIC New Endowment Plus Plan 835 was the flexibility to choose from four investment funds, each offering a different risk-return profile.
Asset Allocation Across Funds
| Fund Type | Government & Corporate Debt | Money Market Instruments | Equity Exposure | Risk Profile |
|---|---|---|---|---|
| Bond Fund | 60% or More | Up to 40% | Nil | Low Risk |
| Secured Fund | 45% or More | Up to 40% | 15% to 55% | Low to Moderate Risk |
| Balanced Fund | 30% or More | Up to 40% | 30% to 70% | Moderate Risk |
| Growth Fund | 20% or More | Up to 40% | 40% to 80% | High Risk |
The selected fund directly influences the long-term growth potential and maturity value of the policy.
Bond Fund
This option focuses primarily on debt-oriented investments and is generally suitable for conservative investors seeking relatively stable returns with lower market volatility.
Secured Fund
The Secured Fund balances debt and equity exposure, aiming to provide moderate growth while maintaining a controlled level of risk.
Balanced Fund
This fund offers a more balanced mix of equity and debt instruments and may suit investors looking for a combination of growth and stability.
Growth Fund
The Growth Fund has the highest equity allocation among the available options and is generally suitable for long-term investors willing to accept higher market fluctuations in exchange for potentially higher returns.
Maturity Benefits and Fund Value
At maturity, the policyholder receives the accumulated fund value.
The maturity amount depends on:
- Premiums invested
- Charges deducted during the policy term
- Fund performance
- Number of units accumulated
- Prevailing NAV at maturity
Since the plan is market-linked, maturity proceeds are not guaranteed and vary according to investment performance.
Net Asset Value (NAV)
NAV represents the per-unit value of the chosen investment fund and plays a crucial role in determining the overall fund value.
A higher NAV generally indicates growth in the underlying investments, while a lower NAV reflects weaker market performance.
No Bid-Offer Spread
The policy used a single NAV for both unit purchases and redemptions, ensuring transparency in fund transactions.
Death Benefit Under LIC New Endowment Plus Plan 835
In the event of the policyholder’s death during the policy term, the nominee becomes eligible for the higher of:
- Fund Value available on the date of death, or
- Basic Sum Assured (generally equal to 10 times the annualized premium)
This structure ensures that beneficiaries receive meaningful financial protection regardless of market performance.
Partial Withdrawal and Surrender Facility
Partial Withdrawals
After completion of the mandatory lock-in period, policyholders may become eligible to withdraw a portion of the accumulated fund value, subject to policy terms and minimum balance requirements.
This feature provides liquidity without requiring complete policy termination.
Policy Surrender
If the policy is surrendered during the lock-in period, the proceeds are generally transferred to a discontinuance fund and become payable after completion of the prescribed lock-in duration.
Applicable discontinuance charges may also apply.
Fund Switching and Premium Redirection Options
The plan offered considerable flexibility by allowing policyholders to adjust their investment strategy during the policy term.
Fund Switching Facility
Policyholders could switch investments between available funds based on changing market conditions or risk preferences.
Key benefits included:
- Ability to move between low-risk and high-risk funds
- Portfolio rebalancing opportunities
- Flexibility to adapt to market movements
A limited number of switches were generally available free of cost each policy year.
Premium Redirection
Future premiums could be directed toward a different fund without affecting the existing accumulated units.
This feature helped policyholders modify their investment approach as their financial objectives evolved.
LIC New Endowment Plus Plan 835 Calculator
The LIC New Endowment Plus Plan 835 Calculator was developed to help prospective buyers and existing policyholders understand the policy’s potential benefits and charges.
What the Calculator Can Estimate
The calculator allows users to:
- Enter age, premium amount, payment frequency, and policy term
- Select a preferred investment fund
- View projected fund values at different assumed growth rates
- Estimate maturity proceeds
- Understand the impact of policy charges
- Compare multiple investment scenarios
How the Calculator Works
The calculator generally performs the following functions:
- Determines the applicable Sum Assured based on premium inputs
- Estimates unit allocation after applicable charges
- Projects future fund values based on assumed rates of return
- Calculates estimated maturity benefits over the selected policy term
These projections are intended for illustration purposes and should not be considered guaranteed returns.
Benefits of LIC New Endowment Plus Plan 835
Insurance and Investment in One Product
The plan combines life insurance protection with market-linked wealth creation opportunities.
Multiple Risk-Based Investment Choices
Policyholders can choose from four distinct funds depending on their investment objectives and risk tolerance.
Life Insurance Protection
The policy provides financial security to beneficiaries through a built-in death benefit.
Liquidity Through Partial Withdrawals
Eligible policyholders can access a portion of their accumulated fund value after the lock-in period.
Tax Advantages
Premium payments may qualify for deductions under Section 80C, while eligible policy proceeds may receive tax benefits under applicable tax laws.
Flexible Portfolio Management
Fund switching and premium redirection facilities allow policyholders to actively manage their investment strategy throughout the policy term.
Overall, LIC New Endowment Plus Plan 835 offered a flexible combination of insurance protection and market-linked investment opportunities, making it suitable for individuals seeking long-term wealth creation alongside life coverage.
Limitations of LIC New Endowment Plus Plan 835
While LIC New Endowment Plus Plan 835 offered a combination of life insurance and investment opportunities, it also had certain limitations that prospective investors needed to consider before purchasing the policy.
Returns Are Market-Dependent
As a Unit Linked Insurance Plan (ULIP), the policy’s performance was directly linked to the market value of the selected investment fund. Unlike traditional insurance plans, returns were not guaranteed and could fluctuate depending on market conditions.
Impact of Various Charges
Several policy-related charges applied throughout the policy term, including:
- Premium Allocation Charges
- Mortality Charges
- Fund Management Charges
- Policy Administration Charges
These deductions could affect the overall investment growth and reduce effective returns over time.
More Complex Than Traditional Plans
ULIPs require policyholders to understand concepts such as NAV, fund allocation, fund switching, and market performance. This complexity may make the plan less suitable for individuals who prefer simple, guaranteed-return products.
No Longer Available for New Buyers
Since the plan was withdrawn from sale on 1 February 2020, it is no longer available for new policy purchases. Only existing policyholders continue to enjoy its benefits according to the original policy terms.
ULIP vs Traditional Endowment Plans
Understanding the differences between a ULIP and a traditional endowment plan can help investors choose a product that aligns with their financial goals and risk appetite.
| Feature | LIC New Endowment Plus 835 (ULIP) | Traditional Endowment Plan |
|---|---|---|
| Investment Option | Multiple market-linked fund choices | Fixed insurance-based savings structure |
| Return Potential | Depends on market performance and NAV movement | Based on guaranteed benefits and declared bonuses |
| Charges | Includes investment-related and insurance charges | Generally simpler premium structure |
| Flexibility | Fund switching and premium redirection available | Limited flexibility after purchase |
| Death Benefit | Higher of Fund Value or Sum Assured, subject to policy terms | Sum Assured plus applicable bonuses |
| Risk Exposure | Investment risk borne by the policyholder | Lower investment risk compared to ULIPs |
The choice between the two largely depends on whether an investor prioritizes market-linked growth potential or prefers relatively stable and predictable policy benefits.
Frequently Asked Questions (FAQs)
What is LIC New Endowment Plus Plan 835?
LIC New Endowment Plus Plan 835 was a Unit Linked Insurance Plan (ULIP) that combined life insurance protection with investment opportunities through multiple market-linked funds.
When was LIC New Endowment Plus Plan 835 available?
The plan was introduced on 19 August 2015 and remained available for new purchases until 1 February 2020, when it was withdrawn from sale.
What was the eligible entry age for this policy?
Individuals could generally enter the plan from 90 days of age up to 50 years, subject to LIC’s eligibility conditions.
How is the maturity benefit calculated?
At maturity, the policyholder receives the accumulated fund value based on the number of units held and the prevailing Net Asset Value (NAV) of the selected fund.
What investment funds were available under the plan?
Policyholders could choose from four investment options:
- Bond Fund
- Secured Fund
- Balanced Fund
- Growth Fund
Each fund offered a different combination of risk and return potential.
Were policyholders allowed to switch between funds?
Yes. The plan provided a fund-switching facility that allowed investors to move between available funds according to changing market conditions or investment objectives.
Final Thoughts
LIC New Endowment Plus Plan 835 was designed for individuals seeking both insurance protection and market-linked wealth creation within a single financial product. Its multiple fund choices, fund-switching facility, partial withdrawal options, and investment flexibility made it attractive to investors comfortable with market-related risks.
However, because returns depended on fund performance and various charges applied throughout the policy term, it was important for policyholders to understand the product thoroughly before investing. Although the plan is no longer open for new subscriptions, existing policyholders can continue to monitor fund performance and estimate future benefits using available policy calculators and fund-tracking tools.
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