LIC New Endowment Plan 714
Planning your financial future requires choosing the right insurance product — one that balances life protection with long-term savings. The LIC New Endowment Plan 714 is one of India’s most trusted traditional life insurance plans, offering guaranteed returns combined with life cover. Whether you are a first-time buyer or evaluating your options, this comprehensive guide explains everything you need to know, including how to use the LIC New Endowment Plan 714 Calculator to estimate your premium and maturity benefits instantly.
What Is LIC New Endowment Plan 714?
The LIC New Endowment Plan (Plan No. 714) is a traditional, participating, non-linked endowment insurance policy offered by the Life Insurance Corporation of India. It is designed for individuals who want:
- Life cover to protect their family against financial hardship in case of an unfortunate event
- Guaranteed savings that grow steadily over the policy term through declared bonuses
- A lump sum payout at the end of the policy term for long-term financial goals
The plan is called “non-linked” because its returns are not tied to the stock market. Instead, LIC shares its profits with policyholders through annual bonuses, making it a safe and predictable savings instrument.
Who should buy this plan? It is ideal for salaried professionals, self-employed individuals, parents saving for their children’s education or marriage, and anyone seeking guaranteed wealth accumulation with life cover.
Key Features of LIC New Endowment Plan 714 at a Glance
| Feature | Details |
|---|---|
| Plan Type | Traditional Endowment (Participating) |
| Minimum Entry Age | 8 years |
| Maximum Entry Age | 55 years |
| Policy Term | 12 to 35 years |
| Minimum Sum Assured | ₹2,00,000 |
| Maximum Sum Assured | No upper limit |
| Maximum Maturity Age | 75 years |
| Premium Payment Term | Equal to policy term |
| Premium Modes | Yearly, Half-Yearly, Quarterly, Monthly (NACH) |
| Loan Facility | Available after 1 year of premium payment |
| Surrender | Available after 1 year |
| Free Look Period | 15 days from policy receipt |
Eligibility Criteria for LIC New Endowment Plan 714
Before applying, confirm you meet the following eligibility conditions:
Age Requirements
- Minimum Entry Age: 8 years (completed)
- Maximum Entry Age: 55 years (nearer birthday)
- Minimum Maturity Age: 20 years
- Maximum Maturity Age: 75 years (nearer birthday)
Policy Term & Sum Assured
- Minimum Policy Term: 12 years
- Maximum Policy Term: 35 years
- Minimum Sum Assured: ₹2,00,000
- Maximum Sum Assured: No limit (subject to underwriting)
The premium paying term runs for the entire duration of the policy, meaning you pay premiums throughout the policy period — unlike limited-pay plans.
Benefits of LIC New Endowment Plan 714
1. Maturity Benefit
If the policyholder survives the full policy term and all due premiums have been paid, LIC pays the maturity benefit as a lump sum:
Maturity Amount = Basic Sum Assured + Vested Simple Reversionary Bonuses + Final Additional Bonus (FAB)
The Final Additional Bonus (FAB) is a special one-time bonus added at the end of the policy term for policies that have run the full duration, making the maturity payout significantly higher.
2. Death Benefit
If the policyholder unfortunately passes away during the policy term, the nominee receives the death benefit:
Death Benefit = Sum Assured on Death + Accrued Simple Reversionary Bonuses + Final Additional Bonus (if applicable)
The Sum Assured on Death is the higher of the following:
- 100% of the Basic Sum Assured, or
- 7 times the annualised premium
This ensures the nominee always receives a meaningful financial cushion regardless of how early the claim arises.
3. Bonus Benefits
LIC New Endowment Plan 714 is a participating plan, meaning LIC shares its surplus profits with policyholders:
- Simple Reversionary Bonus (SRB): Declared every year as a percentage of the Sum Assured. Once added, it cannot be taken away and keeps accumulating throughout the policy term.
- Final Additional Bonus (FAB): A one-time bonus paid at maturity or on death after the policy has completed a specified minimum term. It rewards long-term commitment.
Important: Bonuses are not guaranteed in advance. They are declared by LIC based on the company’s actual profits each year. However, LIC has a strong historical track record of consistent bonus declarations.
4. Loan Facility
Policyholders can avail a policy loan once the policy has acquired a surrender value (after completing at least one full year of premium payment). The loan is sanctioned as a percentage of the policy’s surrender value as per LIC norms. This feature makes the plan a financial safety net during emergencies.
5. Surrender Value
If you are unable to continue the policy for any reason, you can surrender it after paying at least one year’s premium. LIC will pay you the Surrender Value, which depends on the number of premiums paid and the policy term elapsed.
Note: Surrendering a policy early generally results in a loss. It is recommended to continue the policy for its full term to maximise returns.
6. Paid-Up Value
If you have paid premiums for at least two years and then stop, the policy does not immediately lapse. Instead, it converts into a Paid-Up Policy with a reduced Sum Assured proportionate to the premiums paid. The paid-up policy continues to provide life cover until the original maturity date.
LIC New Endowment Plan 714 Calculator – How to Use It
The LIC New Endowment Plan 714 Calculator is a free online tool that helps you instantly estimate:
- Annual, half-yearly, quarterly, or monthly premium (including GST)
- Expected maturity amount with bonuses
- Death benefit coverage at any policy year
- Total premium paid vs. total returns
Step-by-Step: How to Use the Calculator
- Enter Your Age – Input your current age in completed years.
- Select Sum Assured – Enter the insurance cover amount you need (minimum ₹2,00,000).
- Choose Policy Term – Select between 12 and 35 years based on your goal.
- Select Premium Mode – Choose how frequently you want to pay: yearly, half-yearly, quarterly, or monthly.
- Add Optional Riders – Toggle riders like AD&DB, Term Assurance, or PWB if required.
- Click Calculate – The calculator instantly shows your premium, maturity amount, death benefit, and bonus projections.
Why Use the Calculator Before Buying?
Using the calculator helps you:
- Compare scenarios by adjusting the term and sum assured
- Plan your budget by checking monthly vs. yearly premium differences
- Understand total outgo vs. total returns before committing
- Evaluate if the plan suits your financial goal (education fund, retirement corpus, etc.)
Premium Calculation Example – LIC New Endowment Plan 714
Example 1: Age 30, Policy Term 25 Years
| Parameter | Details |
|---|---|
| Age | 30 years |
| Sum Assured | ₹10,00,000 |
| Policy Term | 25 years |
| Riders | None |
Premium Breakdown (Including GST):
| Premium Mode | Premium Amount |
|---|---|
| Yearly | ₹38,483 |
| Half-Yearly | ₹19,458 |
| Quarterly | ₹9,838 |
| Monthly (NACH) | ₹3,279 |
Projected Maturity Details:
| Component | Amount |
|---|---|
| Total Premium Paid | ₹9,62,075 |
| Basic Sum Assured | ₹10,00,000 |
| Vested Bonuses (Approx.) | ₹11,25,000 |
| Final Additional Bonus (FAB) | ₹4,50,000 |
| Total Maturity Amount | ₹25,75,000 |
Example 2: Age 29, Policy Term 21 Years
| Policy Year | Age | Cumulative Premium Paid | Sum Assured | Cumulative Bonus | FAB | Death Benefit | Maturity Amount |
|---|---|---|---|---|---|---|---|
| Year 1 | 29 | ₹48,817 | ₹10,00,000 | ₹45,000 | ₹0 | ₹10,45,000 | – |
| Year 10 | 38 | ₹4,78,711 | ₹10,00,000 | ₹4,50,000 | ₹0 | ₹14,50,000 | – |
| Year 21 | 49 | ₹10,04,137 | ₹10,00,000 | ₹9,45,000 | ₹1,00,000 | – | ₹20,45,000 |
Disclaimer: Bonus and FAB values are indicative based on current LIC declaration rates and may vary. The calculator provides projections, not guaranteed amounts.
How Premium Is Calculated – Factors That Affect Your Premium
Understanding the factors that influence your premium helps you plan better:
| Factor | Impact |
|---|---|
| Age | Higher age = higher premium |
| Sum Assured | Higher SA = higher premium (but rebate available) |
| Policy Term | Longer term = lower annual premium per lakh |
| Premium Mode | Yearly is cheapest; monthly is slightly higher |
| Riders | Add to base premium |
Rebates Available
LIC offers the following premium rebates to encourage larger covers and annual payments:
- Mode Rebate: 2% rebate for yearly mode; 1% for half-yearly mode
- Sum Assured Rebate:
- SA of ₹2,00,000 to ₹4,75,000 → No rebate
- SA of ₹5,00,000 to ₹9,75,000 → 2.5% rebate
- SA of ₹10,00,000 and above → 3% rebate
GST on Premium
- Year 1: 4.5% GST on the base premium
- Year 2 onwards: 2.25% GST on the base premium
Optional Riders for Enhanced Protection
Riders are add-on benefits that strengthen your base policy at a small additional premium. The following riders are available with LIC New Endowment Plan 714:
1. Accidental Death and Disability Benefit Rider (AD&DB)
Provides an additional Sum Assured in case of death due to an accident, and provides income support in case of permanent total disability caused by an accident.
2. Accidental Benefit Rider
Pays an extra amount equal to the rider Sum Assured if death occurs due to an accident. This is a simpler accident rider with no disability coverage.
3. New Term Assurance Rider
Adds additional pure term insurance cover on top of the endowment base plan, increasing total life cover during the rider term at a low extra cost.
4. Premium Waiver Benefit (PWB) Rider
Applicable when the policyholder is the proposer (e.g., a parent buying a policy for a child). If the proposer passes away during the policy term, all future base policy premiums are waived off, and the policy continues with full benefits for the life assured.
Tip: Riders cannot be purchased independently — they must be added to the base plan at the time of policy issuance.
Policy Terms You Must Know
Grace Period
A 30-day grace period is allowed for premium payment. If a premium is not paid within this period, the policy lapses.
Revival of Lapsed Policy
A lapsed policy can be revived within 5 years from the date of first unpaid premium by paying all outstanding premiums with applicable interest and a health declaration if required.
Free Look Period
Policyholders have a 15-day window after receiving the policy document to review its terms. If you are not satisfied, you can return the policy and receive a refund of premiums paid, less applicable charges.
Settlement Options
Both maturity and death benefits can be received as:
- A one-time lump sum, or
- Instalments spread over 5, 10, or 15 years
The instalment option helps beneficiaries manage large payouts more effectively.
Tax Benefits Under LIC New Endowment Plan 714
LIC New Endowment Plan 714 offers dual tax benefits under the Income Tax Act, 1961:
| Tax Section | Benefit |
|---|---|
| Section 80C | Premiums paid are deductible up to ₹1,50,000 per year |
| Section 10(10D) | Maturity proceeds and death benefits are tax-exempt (subject to conditions) |
Note: Tax benefits are subject to prevailing Income Tax laws and individual circumstances. Consult a qualified tax advisor for personalised advice.
Frequently Asked Questions (FAQs)
Q1. What is LIC New Endowment Plan 714?
LIC New Endowment Plan 714 is a traditional participating endowment insurance policy that provides both life cover and savings. It pays a lump sum at maturity consisting of the Sum Assured plus accrued bonuses, or pays a death benefit to the nominee in case of the policyholder’s demise during the term.
Q2. What is the minimum sum assured under this plan?
The minimum Sum Assured is ₹2,00,000. There is no maximum limit, making it suitable for a wide range of financial goals.
Q3. Can I buy LIC Plan 714 if I am 55 years old?
Yes. The maximum entry age is 55 years, but the maturity age cannot exceed 75 years. So at age 55, you can opt for a maximum policy term of 20 years.
Q4. How does the LIC New Endowment Plan 714 Calculator work?
The calculator takes inputs like your age, sum assured, policy term, and premium mode, and uses LIC’s official premium rates and bonus assumptions to project your premium amount, total maturity value, and death benefit. It helps you make an informed decision before purchasing.
Q5. Is the maturity amount tax-free?
Yes, in most cases, the maturity amount is tax-exempt under Section 10(10D) of the Income Tax Act, provided the annual premium does not exceed 10% of the Sum Assured (for policies issued after April 1, 2012).
Q6. Can I surrender the policy before maturity?
Yes. Surrender is allowed after paying premiums for at least one year. However, surrendering early results in a financial loss, as the surrender value is lower than total premiums paid in the early years.
Q7. Is a medical examination required to buy LIC Plan 714?
For standard age groups and sum assured amounts, medical examination may not be required. However, for higher sum assured values or older entry ages, LIC may ask for medical tests.
Q8. What happens if I miss a premium payment?
A 30-day grace period is provided. If the premium is still unpaid after the grace period, the policy lapses. It can be revived within 5 years by paying all overdue premiums with interest.
Q9. What are the best riders to add with this plan?
The most recommended rider is the Accidental Death and Disability Benefit (AD&DB) Rider, as accidents are a significant risk and the rider cost is low relative to the coverage benefit. If you are a proposer buying the policy for a child, the Premium Waiver Benefit Rider is highly valuable.
Q10. Can I get a loan against this policy?
Yes. A loan can be availed once the policy acquires a surrender value (after one year of full premium payment). The loan amount is a percentage of the surrender value and must be repaid with interest.