In this article we'll compare endowment plan(table 14) with new endowment plan (814). We'll see comparison on criteria's such as policy general criteria, rebate, rebate for higher sum assured, Loan, surrender value, etc.
Basic criteria
Feature | Endowment Plan (14) | New Endowment Plan (814) |
---|---|---|
Entry Age | 12 Years to 65 Years | 8 Years to 55 Years |
Maturity Age | Maximum 75 years | Maximum 75 years |
Policy Term | Between 5 to 55 years | Between 12 to 35 years |
Premium mode | Yearly, Half yearly, Quarterly and Monthly | Yearly, Half yearly, Quarterly and Monthly |
Sum Assured | Mininum 50,000 rupees | Mininum 100,000 rupees |
Rebate (Premium)
Feature | Endowment Plan (14) | New Endowment Plan (814) |
---|---|---|
Yearly | 3% on tabular premium | 2% on tabular premium |
Half Yearly | 1.5% on tabular premium | 1% on tabular premium |
Quarterly | Nil | Nil |
Rebate for higher sum assured
Feature | Endowment Plan (14) | New Endowment Plan (814) |
---|---|---|
Rs.1,00,001 and above | 2% of SA | Rs.5,00,000 and above 3% of BSA |
Rs.50,001 to Rs.1,00,000 | 1% of SA | Rs.2,00,000 to Rs.4,95,000 2% BSA |
Upto Rs.50,000 | Nil | Less than Rs.2,00,000-Nil |
Maturity Benefit | BSA+Bonus+FAB | BSA+Bonus+FAB |
Death Benefit | SA+Vested Bonus+FAB | Sum Assured on death+Vested Bonus+FAB |
Defination of Sum Assured on death | NA | Higher of Basic Sum Assured (BSA) or 10 times of Annual Premium |
Loan and surrender value
In both endowment plan(table 14) and new endowment plan (814) loans will be available after 3 years. In both cases guaranteed surrender value will be available after three years.
In endowment plan, guaranteed surrender value will be 30% of total premium paid minus extra premium. Whereas in new endowment plan guaranteed surrender value will be % of total premium paid excluding taxes and extra premium.
There is no change in special surrender value.
Revival of lapsed policies
In Endowment plan (14), policy may be reviewed within 5 years of from the date of first unpaid premium.
In new endowment plan (814), policy may be reviewed within 2 years of from the date of first unpaid premium.