LIC New Endowment Plan Calculator

Complete Guide to LIC New Endowment Plan (Plan No. 914)

The LIC New Endowment Plan (Plan 914), formerly marketed as Table 814, represents the benchmark participating, non-linked traditional life insurance endowment plan from the Life Insurance Corporation of India. Designed to offer a balanced synthesis of guaranteed financial protection against premature death and long-term disciplined wealth accumulation, Plan 914 remains the go-to financial instrument for millions of Indian households planning for milestone goals like child education, marriage funds, home buying down-payments, and tax-free retirement lump sums.

Unlike pure term insurance policies that provide financial payouts only upon demise, or volatile market-linked ULIP plans, LIC Plan 914 guarantees the full Basic Sum Assured at maturity, enriched every year by LIC's annual declared Simple Reversionary Bonuses and Final Additional Bonus (FAB).

Key Eligibility Parameters & Operational Rules for Plan 914

The regulatory parameters prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) for Table 914 are outlined below:

How Benefits Are Structured: Maturity vs. Death Benefit

Maturity Benefit (Survival to Policy Expiry)

If the life assured survives the complete chosen policy duration and all due premiums have been duly paid, LIC disburses a guaranteed one-time lump sum maturity package consisting of:

1. Basic Sum Assured: The full face value of the chosen life cover.
2. Vested Simple Reversionary Bonuses: The cumulative annual bonuses declared per ₹1,000 Sum Assured across the entire policy term.
3. Final Additional Bonus (FAB): A one-time terminal loyalty bonus declared for policies running 15 years or longer.

Death Benefit (Demise During Policy Term)

If the unfortunate demise of the policyholder occurs at any point during the policy tenure:

• The nominee receives the Sum Assured on Death, defined as the highest of:
  • 125% of the Basic Sum Assured (1.25 × BSA).
  • 7 times the Annualized Base Premium (7 × Annual Premium).
  • 105% of all premiums paid up to the date of demise.
• Plus all Simple Reversionary Bonuses accrued to the policy up to the policy anniversary prior to the death.
• Plus Final Additional Bonus (FAB), if the policy has completed the required tenure.
• If the Accidental Death and Disability Benefit Rider (DAB) was opted, an additional 100% of the Basic Sum Assured is paid in case of accidental death.

Mathematical Formulas for LIC Plan 914

The actuarial mechanics of LIC New Endowment Plan are governed by the following mathematical formulations:

Historical Bonus Rates for LIC Plan 914 (Per ₹1,000 Sum Assured)

LIC of India declares simple reversionary bonus rates annually based on its actuarial valuation of life fund surpluses. The prevailing declared bonus rates for Plan 914 range as follows:

Final Additional Bonus (FAB) Slabs Table

Final Additional Bonus (FAB) is paid as a one-time terminal reward for long-term policyholders who remain invested for 15 or more years:

High Sum Assured Rebates & Modal Discounts

LIC rewards buyers opting for larger life covers with direct premium reductions per thousand sum assured:

• Sum Assured Rebates:
  • ₹1,00,000 to ₹1,95,000: Nil
  • ₹2,00,000 to ₹4,95,000: ₹2.00 per ₹1,000 Basic Sum Assured discount
  • ₹5,00,000 and above: ₹3.00 per ₹1,000 Basic Sum Assured discount
• Mode Rebates:
  • Yearly Mode: 2% rebate on Tabular Premium
  • Half-Yearly Mode: 1% rebate on Tabular Premium
  • Quarterly & Monthly NACH Mode: Nil

Practical Comprehensive Numerical Case Studies

Case Study 1: Age 30 Professional (₹10 Lakhs Cover, 21-Year Term)

Amit (Age 30) purchases LIC Plan 914 for a 21-Year Term with a ₹10,00,000 Basic Sum Assured.

Case Study 2: Child Education Fund at Age 35 (₹25 Lakhs, 16-Year Term)

Pooja (Age 35) secures a 16-year policy with ₹25,00,000 Sum Assured to fund her daughter's college degree. Her annual premium is ~₹1,62,000. Total invested over 16 years = ₹25.9 Lakhs. At maturity (Year 16), she receives: Basic Sum Assured (₹25,00,000) + Reversionary Bonus @ ₹42/1000 (₹16,80,000) + FAB @ ₹50/1000 (₹1,25,000) = ₹43,05,000 (₹43.05 Lakhs Tax-Free) to cover international university admissions.

Case Study 3: Retirement Wealth Accumulation at Age 45 (₹50 Lakhs, 20-Year Term)

Suresh (Age 45), a senior business manager, wants a guaranteed corpus for his retirement at age 65. He purchases Plan 914 with a ₹50,00,000 Basic Sum Assured for a 20-year duration.

Case Study 4: Minor Child Savings Plan at Age 8 (₹5 Lakhs, 25-Year Term)

Rohan's parents enrolled him at age 8 in Plan 914 for a 25-year tenure with ₹5,00,000 Sum Assured. Because of his young entry age, the annual premium is extremely affordable at just ~₹15,800/year. When Rohan turns 33, he receives a lump sum of ₹12,50,000 (12.5 Lakhs) - including ₹5.75 Lakhs in accrued bonuses and ₹1.75 Lakhs FAB - providing seed capital for buying his first home or starting a business.

Age-Wise Annual Premium Matrix for LIC Plan 914 (Yearly Mode)

The table below provides indicative annualized premiums (excluding GST) across representative entry ages and terms for standard ₹5 Lakhs and ₹10 Lakhs Sum Assured:

LIC Plan 914 vs. PPF vs. Bank Fixed Deposits (FDs) vs. Mutual Funds

Comprehensive Analysis of Optional Riders for Plan 914

To customize your life cover, LIC offers 4 institutional rider endorsements:

• 1. Accidental Death & Disability Benefit Rider (AD&DB): If death occurs due to an accident, the nominee receives an additional 100% of the Basic Sum Assured. In case of permanent disability, future premiums are waived, and the accident sum assured is paid in monthly installments over 10 years.
• 2. New Term Assurance Rider: Provides an additional pure term life cover equal to the basic sum assured on death, doubling your family's financial protection.
• 3. New Critical Illness Benefit Rider: Pays a 100% lump sum on the first diagnosis of any of the 15 specified critical illnesses (e.g. open heart bypass surgery, cancer, kidney failure, stroke).
• 4. Premium Waiver Benefit (PWB) Rider: Essential for minor children's policies; waives all future premiums if the parent/proposer passes away.

LIC Plan 914 vs. LIC Jeevan Labh (936) vs. LIC Jeevan Anand (915)

Comprehensive Maturity Claim Settlement Procedure

When your Plan 914 policy reaches maturity, follow this simple documentation checklist to receive direct NEFT payment into your bank account:

1. Maturity Intimation (Form No. 3825): LIC issues a discharge voucher (Form 3825) approximately 2 months prior to the maturity due date.
2. Documents Required:
   • Original Policy Bond Document (signed across a revenue stamp on Form 3825).
   • NEFT Mandate Form along with a personalized cancelled cheque leaf showing your name, account number, and IFSC code.
   • Self-attested photocopies of PAN Card and Aadhaar Card for identity and address verification.
3. Submission & Direct Credit: Submit the physical set to your home servicing branch. LIC processes the claim and transfers the full maturity amount directly into your bank account on or before the maturity date.

Surrender Value, Paid-Up Policy & Policy Loan Rules

Life circumstances change, and policyholders may need liquidity before maturity:

• Guaranteed Surrender Value (GSV): A policy acquires a surrender value after 2 full continuous years of premium payments. GSV equals a percentage of total premiums paid (excluding rider premiums and taxes) plus the surrender value of accrued bonuses. GSV = (Total Premiums Paid × GSV Factor) + (Accrued Bonuses × Bonus Surrender Factor)
• Special Surrender Value (SSV): LIC calculates SSV using paid-up proportions and discounted future bonuses. SSV is generally substantially higher than GSV for policies completed for 5+ years.
• Paid-Up Policy: If you stop paying premiums after 2 years, your policy doesn't lapse completely. It converts into a paid-up policy with reduced Sum Assured: Paid-Up Sum Assured = Basic Sum Assured × ≤ft( \frac{Number of Premiums Paid}{Total Premiums Payable}
• Instant Policy Loan: You can avail a loan up to 90% of the surrender value directly from any LIC branch at competitive interest rates (currently around 9.5% p.a. payable half-yearly) with minimal documentation and no credit score checks. Check eligibility with our LIC Policy Loan Calculator.

Tax Benefits Under Section 80C & Section 10(10D)

According to the Income Tax Department of India:

• Section 80C Deduction: Premiums paid towards LIC Plan 914 are eligible for tax deductions up to ₹1,50,000 per financial year under Section 80C.
• Section 10(10D) Tax-Free Maturity & Death Claims: The entire lump sum maturity payout, including accrued bonuses and death claim settlements, is 100% exempt from income tax under Section 10(10D), provided the annual premium does not exceed 10% of the Basic Sum Assured.

How to Use This LIC New Endowment Plan Calculator

1. Set Entry Age: Slide or type your current age (8 to 55 years).
2. Choose Policy Term: Select your desired investment duration (12 to 35 years).
3. Enter Basic Sum Assured: Input your target life cover amount or click quick preset buttons (₹2L, ₹5L, ₹10L, ₹25L, ₹50L).
4. Pick Premium Frequency: Choose Yearly, Half-Yearly, Quarterly, or Monthly payment frequency.
5. Analyze Comprehensive Breakdown: View your exact premium with GST, yearly/total bonuses, Final Additional Bonus (FAB), total maturity payout, and net profit instantly.

Frequently Asked Questions (FAQs)