Home >Comparison of New vs Old LIC Plans After IRDA Surrender Guidelines -2024
Comparison of New vs Old LIC Plans After IRDA Surrender Guidelines -2024
The Insurance Regulatory and Development Authority of India (IRDA) has issued guidelines to modify the
calculation of the surrender value of insurance policies.
In view of these guidelines, LIC of India has modified its plans. Below are the changes made in individual
plans.
New Endowment Plan (714) vs New Endowment Plan (914)
| Features |
New Endowment Plan (714) |
New Endowment Plan (914) |
| Minimum Basic Sum Assured |
₹2,00,000 |
₹1,00,000 |
| Maximum Age at Entry |
50 |
55 |
| Premium Rates |
Revised |
- |
| Surrender Eligibility |
After One Year |
After Two Years |
| Paid-up Eligibility |
After One Year |
After Two Years |
| Death Benefit under Paid-up |
At least 105% of Total Premium Paid |
No mention |
| Loan Percentage of Surrender Value |
Mentioned after the table |
90% |
| LIC's New Critical Illness Benefit Rider |
Not Available |
Available |
| LIC’s Accident Benefit Rider |
Up to Three Times of Basic Sum Assured |
Up to Basic Sum Assured |
| Limit on Total Life Insurance Riders |
Shall not exceed 30% of Base Plan Premium |
Shall not exceed 100% of Base Plan Premium with LIC’s Critical Illness Benefit Rider |
| Free Look Period |
30 Days |
15 Days |
Loan under New Endowment Plan (714)
| # Loan under New Endowment Plan (714) |
| Policy Status |
Before Payment of Two Full Year’s Premiums |
After Payment of Two Full Year’s Premiums |
| Under In-force Policies |
50% |
75% |
| Under Paid-up Policies |
40% |
65% |
New Jeevan Anand Plan (715) vs New Jeevan Anand Plan (915)
| Features |
New Jeevan Anand Plan (715) |
New Jeevan Anand Plan (915) |
| Minimum Basic Sum Assured |
₹2,00,000 |
₹1,00,000 |
| Premium Rates |
Revised |
- |
| Surrender Eligibility |
After One Year |
After Two Years |
| Paid-up Eligibility |
After One Year |
After Two Years |
| Death Benefit under Paid-up |
At least 105% of Total Premium Paid |
No mention |
| Loan Percentage of Surrender Value |
Mentioned after the table |
90% |
| LIC’s New Critical Illness Benefit Rider |
Not Available |
Available |
| LIC’s Accident Benefit Rider |
Up to Three Times of Basic Sum Assured |
Up to Basic Sum Assured |
| Limit on Total Life Insurance Riders |
Shall not exceed 30% of Base Plan Premium |
Shall not exceed 100% of Base Plan Premium with LIC’s Critical Illness Benefit Rider |
| Free Look Period |
30 Days |
15 Days |
| # Loan under New Jeevan Anand Plan (715) |
| Policy Status |
Before Payment of Two Full Year’s Premiums |
After Payment of Two Full Year’s Premiums |
| Under In-force Policies |
50% |
75% |
| Under Paid-up Policies |
40% |
65% |
New Jeevan Lakshya Plan (733) vs Jeevan Lakshya Plan (933)
| Features |
New Jeevan Lakshya Plan (733) |
Jeevan Lakshya Plan (933) |
| Minimum Basic Sum Assured |
₹2,00,000 |
₹1,00,000 |
| Premium Rates |
Revised |
- |
| Surrender Eligibility |
After One Year |
After Two Years |
| Paid-up Eligibility |
After One Year |
After Two Years |
| Death Benefit under Paid-up |
At least 105% of Total Premium Paid |
No mention |
| Loan Percentage of Surrender Value |
Mentioned after the table |
90% |
| LIC’s New Critical Illness Benefit Rider |
Not Available |
Available |
| LIC’s Accident Benefit Rider |
Up to Three Times of Basic Sum Assured |
Up to Basic Sum Assured |
| Limit on Total Life Insurance Riders |
Shall not exceed 30% of Base Plan Premium |
Shall not exceed 100% of Base Plan Premium with LIC’s Critical Illness Benefit Rider |
| Free Look Period |
30 Days |
15 Days |
| # Loan under New Jeevan Lakshya Plan (733) |
| Policy Status |
Before Payment of Two Full Year’s Premiums |
After Payment of Two Full Year’s Premiums |
| Under In-force Policies |
50% |
75% |
| Under Paid-up Policies |
40% |
65% |
New Jeevan Labh Plan (736) vs Jeevan Labh Plan (936)
| Features |
New Jeevan Labh Plan (736) |
Jeevan Labh Plan (936) |
| Premium Rates |
Revised |
- |
| Surrender Eligibility |
After One Year |
After Two Years |
| Paid-up Eligibility |
After One Year |
After Two Years |
| Death Benefit under Paid-up |
At least 105% of Total Premium Paid |
No mention |
| Loan Percentage of Surrender Value |
Mentioned after the table |
90% |
| LIC’s New Critical Illness Benefit Rider |
Not Available |
Available |
| LIC’s Accident Benefit Rider |
Up to Three Times of Basic Sum Assured |
Up to Basic Sum Assured |
| Limit on Total Life Insurance Riders |
Shall not exceed 30% of Base Plan Premium |
Shall not exceed 100% of Base Plan Premium with LIC’s Critical Illness Benefit Rider |
| Free Look Period |
30 Days |
15 Days |
| # Loan under New Jeevan Labh Plan (736) |
| Policy Status |
Before Payment of Two Full Year’s Premiums |
After Payment of Two Full Year’s Premiums |
| Under In-force Policies |
50% |
80% |
| Under Paid-up Policies |
40% |
70% |
New Jeevan Umang Plan (745) vs Jeevan Umang Plan (945)
| Features |
New Jeevan Umang Plan (745) |
Jeevan Umang Plan (945) |
| Minimum Age at the End of PPT |
18 Years |
30 Years |
| Minimum Age at Entry |
Reduced |
- |
| Premium Rates |
Revised |
- |
| Surrender Eligibility |
After One Year |
After Two Years |
| Paid-up Eligibility |
After One Year |
After Two Years |
| Death Benefit under Paid-up |
At least 105% of Total Premium Paid |
No mention |
| Loan Percentage of Surrender Value |
Mentioned after the table |
90% |
| LIC’s New Critical Illness Benefit Rider |
Not Available |
Available |
| LIC’s Accident Benefit Rider |
Up to Three Times of Basic Sum Assured |
Up to Basic Sum Assured |
| Limit on Total Life Insurance Riders |
Shall not exceed 30% of Base Plan Premium |
Shall not exceed 100% of Base Plan Premium with LIC’s Critical Illness Benefit Rider |
| Free Look Period |
30 Days |
15 Days |
| # Loan under New Jeevan Umang Plan (745) |
| Policy Status |
Before Payment of Two Full Year’s Premiums |
After Payment of Two Full Year’s Premiums |
| Under In-force Policies |
50% |
75% |
| Under Paid-up Policies |
40% |
65% |
Summary
- Plan Modifications: The old LIC plans (e.g., New Endowment Plan 914, Jeevan Anand Plan 915)
have been replaced with updated versions (e.g., New Endowment Plan 714, New Jeevan Anand Plan 715),
reflecting changes in surrender value calculations.
- Minimum Basic Sum Assured: The minimum basic sum assured has been increased in the new
plans, with the New Endowment Plan (714) offering ₹2,00,000 compared to ₹1,00,000 in its predecessor (914).
- Eligibility Changes: Surrender eligibility has been modified; the new plans allow surrender
after one year, while the old plans required two years for eligibility.
- Paid-up Eligibility: Similar to surrender eligibility, the new plans allow paid-up status
after one year, while the old plans mandated a two-year waiting period.
- Death Benefit Provisions: The death benefit under paid-up policies has been defined more
clearly in the new plans, ensuring at least 105% of the total premium paid, which was not explicitly
mentioned in the old plans.
- Loan Percentage of Surrender Value: The loan percentage available on the surrender value
has been more transparently addressed in the new plans, ensuring clarity for policyholders regarding their
borrowing options.
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