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Benefits of LIC Endowment Plans

Published On Jun 04, 2021

Endowment plans are always a good decision to provide for your family as well as yourself with your savings. LIC has many different types of endowment plans available under them. Not all plans might suit everyone’s needs which is why it is incredible to have such flexibility in choosing. 

LIC endowment plans give several advantageous benefits to all their policyholders. Not only do they provide after the endowment plan reaches maturity, but also anytime during its policy term. All of it goes on to make the plan more robust and provide all-round protection to the policyholder.

Benefits of LIC Endowment Plans

The following are the several benefits usually provided by LIC Endowment Plans.

1. Death Benefit

In case the policyholder dies before the end of the policy term, a death benefit is provided to their beneficiaries or nominees. This is only applicable in case the plan is active and all premiums till the date of death have been paid. The death benefit is the sum of the Sum Assured on Death and all bonuses that have been accrued. The Sum Assured on Death must be higher than the Basic Sum Assured or 10 times the Annualised Premium of the plan. The total benefit must not be more than 105% of the total premiums paid till the day of death.

2. Maturity Benefit

If the policyholder survives till the end of the policy term, a maturity benefit is paid out to them. The lump sum of the sum assured and all accrued bonuses are paid out once the LIC endowment plan reaches maturity and given, all applicable premiums under the plan have been paid off.

3. Rider Benefits

Riders are low-cost additions to a basic insurance plan, in this case, an endowment plan, that enhances the features and benefits provided by the plan. There are different riders available, customised for certain special circumstances like death by accident, critical illness etc. The Rider Benefits are paid along with the other assured benefits from the basic LIC Endowment Plan.

4. Bonus Benefits 

LIC Endowment Plans also provide bonus benefits to their policyholders. Simple Reversionary Bonuses as per the plan’s participation in Company Profits is given out when the plan is active. Additional Bonuses may also be provided with the Maturity or Death Benefit, given that the plan has been active for a minimum term.


For further and more specific insights on the benefits provided by a certain LIC endowment plan, it is advised to thoroughly go through the plan brochure provided on the LIC endowment plan of your choice. Information like exactly what types of riders are available with a certain LIC endowment plan is important to make the right choice of the endowment plan. 

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