Guide to LIC New Endowment Plan (Table No. 914 / 714 / 814 / 14)
LIC New Endowment Plan (Table No. 914 / 714 / UIN: 512N277V02) is the foundational cornerstone of traditional savings and life insurance in India. Historically introduced by the Life Insurance Corporation of India (LIC) as Table 14, subsequently updated as Plan 814 under IRDAI 2014 guidelines, and re-notified as Plan 914 under revised product regulations, this plan represents the gold standard of participating, non-linked endowment assurance.
Unlike market-linked ULIPs or volatile equities, LIC New Endowment guarantees dual sovereign protection:
- Financial Shield for Your Family: If the life assured passes away unexpectedly during the policy term, LIC immediately disburses the full Sum Assured on Death plus all accrued simple reversionary bonuses and Final Additional Bonus (FAB) to the nominee.
- Guaranteed Wealth Accumulation: If the policyholder survives the chosen term (12 to 35 years), LIC pays out the full lump-sum Basic Sum Assured along with vested compound reversionary bonuses and terminal loyalty additions, completely tax-free under Section 10(10D) of the Income Tax Act.
Whether you are planning a child's higher education milestone, building a marriage fund, or securing your post-retirement corpus, our LIC Plan 914 / 714 Calculator allows you to model custom entry ages, coverage amounts, riders, and declared bonus rates with institutional accuracy.
Statutory Eligibility Criteria & Policy Parameters Matrix
The table below outlines the statutory underwriting limits and eligibility requirements governed by IRDAI regulations for Plan 914 / 714:
| Parameter | Statutory Limit (Plan 914 / 714 / 814) | Operational Remarks |
|---|---|---|
| Minimum Entry Age | 8 Years (Completed) | Ideal for long-term child education and marriage planning. |
| Maximum Entry Age | 55 Years (Nearer Birthday) | Enables mature working individuals to build guaranteed savings. |
| Minimum Policy Term | 12 Years | Provides short-to-medium term guaranteed wealth milestones. |
| Maximum Policy Term | 35 Years | Allows maximum compounding of reversionary bonuses up to age 75. |
| Maximum Maturity Age | 75 Years (Nearer Birthday) | Age at entry plus policy term cannot exceed 75 years. |
| Premium Paying Term (PPT) | Equal to Policy Term (12 to 35 Yrs) | Regular premium paying structure throughout the policy duration. |
| Minimum Basic Sum Assured | ₹1,00,000 | Multiples of ₹5,000 up to ₹20,000; multiples of ₹10,000 thereafter. |
| Maximum Basic Sum Assured | No Upper Limit | Subject to underwriting capacity and financial income verification. |
| Available Add-on Riders | ADDB Rider, Term Rider, Critical Illness Rider | Enhance life protection against accidents, disability, and critical illnesses. |
Actuarial Mathematics Behind LIC Plan 914 / 714 Calculations
The actuarial mechanics of LIC New Endowment Plan are governed by traditional participating valuation principles. The return on investment is composed of the Basic Sum Assured, annual Simple Reversionary Bonuses (SRB), and Final Additional Bonuses (FAB).
1. Maturity Benefit Calculation Formula
On surviving the policy term, the lump-sum tax-free maturity payout is calculated as:
Where:
• Accrued Bonus = $\text{Basic Sum Assured} \times \left(\frac{\text{Annual Declared Bonus Rate}}{1000}\right) \times \text{Policy Term (Years)}$
• FAB = $\text{Basic Sum Assured} \times \left(\frac{\text{FAB Rate}}{1000}\right)$ (Applicable for terms $\ge 15$ years).
2. Death Benefit Guarantee Formula
In the event of the life assured's demise during the policy tenure, LIC pays the complete death benefit to the nominee:
Where Sum Assured on Death is defined as the highest of: 1) Basic Sum Assured; 2) 7 times the Annualized Premium; or 3) 105% of all premiums paid up to the date of demise. If the Accidental Death & Disability Benefit Rider (ADDB) is selected, an additional 100% Sum Assured is disbursed immediately.
3. Tabular Net Premium & GST Formula
The base installment is determined after adjusting tabular rates for high sum assured rebates and frequency mode discounts:
High Sum Assured Rebates & Mode Discounts (Plan 914 / 714)
LIC rewards policyholders choosing higher coverage amounts and annual payment frequencies by offering statutory discounts directly on tabular rates:
| Basic Sum Assured Slab | High SA Rebate (per ₹1k SA) | Premium Frequency Mode | Mode Rebate Percentage |
|---|---|---|---|
| ₹1,00,000 to ₹1,95,000 | Nil | Yearly Payment Mode | 2.00% of Tabular Premium |
| ₹2,00,000 to ₹4,95,000 | ₹1.50 per ₹1,000 SA | Half-Yearly Payment Mode | 1.00% of Tabular Premium |
| ₹5,00,000 and Above | ₹2.00 per ₹1,000 SA | Quarterly / Monthly (NACH) | Nil |
Declared Simple Reversionary Bonus Rates & Final Additional Bonus (FAB)
As a participating endowment scheme, Plan 914 / 714 receives annual bonus declarations from LIC's valuation surplus. These bonuses vest annually and become guaranteed additions to the policy:
| Policy Term (Years) | Declared Bonus Rate (per ₹1k SA / Year) | Bonus Accrual on ₹10 Lakh SA | Expected FAB Slab (per ₹1k SA) |
|---|---|---|---|
| 12 to 15 Years Term | ₹34 – ₹38 per ₹1,000 SA | ₹38,000 / year (Total: ₹5,70,000 for 15 yrs) | ₹10 – ₹25 |
| 16 to 20 Years Term | ₹42 – ₹44 per ₹1,000 SA | ₹44,000 / year (Total: ₹8,80,000 for 20 yrs) | ₹40 – ₹90 |
| 21 to 25 Years Term | ₹47 – ₹48 per ₹1,000 SA | ₹48,000 / year (Total: ₹12,00,000 for 25 yrs) | ₹200 – ₹450 |
| 26 to 35 Years Term | ₹48 per ₹1,000 SA | ₹48,000 / year (Total: ₹16,80,000 for 35 yrs) | ₹450 – ₹750+ |
Surrender Value, Paid-Up Policy & Policy Loan Facility
LIC New Endowment provides emergency liquidity and flexible exit options to policyholders facing unforeseen financial hardship:
- Policy Loan Facility: You can apply for a policy loan after paying premiums for at least 2 full consecutive years. In-force policies are eligible for loans up to 90% of the surrender value (80% for paid-up policies) at competitive interest rates (~9.5% p.a.).
- Guaranteed Surrender Value (GSV): Available after completing 2 full years. It equals a percentage (30% to 90%) of total base premiums paid (excluding taxes and rider charges), plus the surrender value of accrued vested bonuses.
- Special Surrender Value (SSV): In almost all circumstances, LIC pays the Special Surrender Value, which is actuarially computed based on the paid-up sum assured, accrued bonuses, and discounted present value factors.
- Paid-Up Conversion: If you stop paying premiums after 2 full years, the policy does not lapse. It converts into a paid-up policy where the Basic Sum Assured is reduced proportionately to the ratio of premiums paid versus premiums payable, payable at the end of the term.
Tax Benefits Under Old & New Tax Regimes (FY 2025-26)
Investing in LIC Plan 914 / 714 provides dual statutory tax incentives under the Indian Income Tax Act:
- Section 80C Deduction: Premiums paid for self, spouse, or children qualify for annual tax deductions up to ₹1,50,000 under the Old Tax Regime.
- Section 10(10D) Tax-Exempt Maturity & Death Claims: The entire maturity corpus (Sum Assured + Bonus + FAB) as well as death claim proceeds are 100% tax-free in the hands of the policyholder or beneficiary, provided the annual premium does not exceed 10% of the Basic Sum Assured.
Plan Comparison: New Endowment (914/714) vs Jeevan Labh (936) vs Jeevan Anand (915)
The table below provides a side-by-side comparison to help you choose the plan that best matches your financial objectives:
| Feature | New Endowment (914 / 714) | Jeevan Labh (936) | Jeevan Anand (915) | Jeevan Umang (945) |
|---|---|---|---|---|
| Plan Structure | Classical Endowment | Limited Pay Endowment | Endowment + Whole Life | Whole Life 8% Income |
| Premium Paying Term | Equal to Policy Term | Limited (10, 15, 16 Yrs) | Equal to Policy Term | Limited (15, 20, 25, 30 Yrs) |
| Risk Cover During Term | 100% Sum Assured | 100% Sum Assured | 125% Sum Assured | 100% Sum Assured |
| Cover After Maturity? | NO (Ends at maturity) | NO (Ends at maturity) | YES (100% SA Lifelong) | YES (Lifelong up to 100) |
| Bonus Range | ₹34 – ₹48 / ₹1k SA | ₹40 – ₹46 / ₹1k SA | ₹40 – ₹48 / ₹1k SA | ₹40 – ₹50 / ₹1k SA |
| Primary Advantage | Flexible terms (12 to 35 yrs) | Highest return on limited pay | Lifelong family legacy | Guaranteed lifetime pension |
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Frequently Asked Questions (FAQ) – Plan 914 / 714
What is the minimum and maximum sum assured for LIC Plan 914 / 714?
The minimum Basic Sum Assured for LIC New Endowment Plan is ₹1,00,000. There is no upper limit on the maximum sum assured, which is subject to the applicant's income verification and standard underwriting guidelines.
Can minor children be enrolled under LIC Plan 914 / 714?
Yes. Children who have completed 8 years of age can be enrolled under their own name. For children under 18 years, parents can also attach the Premium Waiver Benefit (PWB) rider to ensure all future premiums are waived if the parent passes away.
What is the grace period for premium payment in Plan 914?
LIC provides a grace period of 30 days for yearly, half-yearly, and quarterly payment frequencies, and 15 days for monthly payment mode. If death occurs during the grace period, the full claim is paid after deducting the unpaid premium.
Can I surrender my policy if I cannot continue paying premiums?
Yes. The policy acquires a Guaranteed Surrender Value (GSV) after completing 2 full years of premium payments. However, staying invested until maturity yields the highest return due to the vesting of compound bonuses and Final Additional Bonus (FAB).
How do I buy LIC Plan 914 online with paperless onboarding?
You can click on the WhatsApp advisory buttons on this page to connect directly with Authorized LIC Advisor Rakesh (Agent Code: LIC10031212). You will receive an official proposal quotation and a secure digital link for 100% paperless onboarding.