New Endowment policy keeps the paying years and policy years the same. If you choose a long term, you also take on a longer premium commitment. Before looking at the estimated maturity amount, check whether those payments still fit your budget in the later years when your other expenses may change.
A term that fits your age and budget
People from eight to fifty years can apply, but the maturity age rules still decide which terms are available. Starting cover is two lakh rupees under this version. A younger person and an older person may therefore see different term choices even when both want the same amount of cover.
Premiums continue through the chosen term
When you survive to the end with the policy fully maintained, the basic cover and eligible bonuses form the maturity payment. There are no scheduled money-back payments in between under the base plan. If you prefer to finish premiums earlier, the Jeevan Labh policy calculator gives a useful comparison of paying years.
A twenty year example with five lakh cover
For five lakh rupees of cover, an assumed forty rupees yearly bonus per thousand gives twenty thousand rupees a year. If that rate stayed the same for twenty years, basic cover and bonus would total nine lakh rupees. This is only an example, because future declared rates can change.
FAQ
Q: Can I select any New Endowment term between twelve and thirty five years?
A: Yes, within the allowed range, provided the term also meets the entry and maturity age rules for the person to be insured.
Q: Is regular payment always cheaper than a limited-pay policy?
A: Not necessarily. Compare actual quotes for the same cover and suitable terms; a lower yearly payment can still mean paying for more years.
Q: Does cover above five lakh bring a fixed discount for everyone?
A: The rebate follows the applicable cover slab and premium schedule. Ask for the actual quote rather than subtracting a guessed percentage yourself.