Mastering Your Savings with LIC New Endowment Plan (Plan 914)
For decades, the endowment plan has been the primary vehicle for long-term savings in Indian households. LIC's New Endowment Plan (Table No. 914) is the modernized version of this classic bread-and-butter insurance product. It offers a perfect blend of low-risk investment and comprehensive life protection. Using an LIC New Endowment Calculator Online, you can accurately forecast your wealth accumulation over 15, 20, or even 35 years, helping you hit major life milestones like child education or retirement with ease.
In this expert guide, we will analyze the LIC Plan 914 Maturity Calculator logic, explore the impact of GST on your premiums, and help you understand the power of vested bonuses in maximizing your final payout.
Why LIC New Endowment (914) is a Must-Have?
Plan 914 is designed for those who prefer safety and guaranteed outcomes over market volatility. Here are its core benefits:
- Guaranteed Maturity: At the end of the term, you get the full Sum Assured plus all accumulated bonuses.
- High Bonus Participation: As a "With-Profit" plan, it enjoys a share of LIC's annual profits in the form of Reversionary Bonuses.
- Loan Facility: You can access immediate liquidity by taking a loan against the policy's surrender value after just 2 years.
| Parameter | Details for Plan 914 |
|---|---|
| Minimum Entry Age | 8 Years (Completed) |
| Maximum Entry Age | 55 Years (Nearer Birthday) |
| Policy Term | 12 to 35 Years |
| Minimum Sum Assured | ₹ 1,00,000 |
| Maximum Sum Assured | No Limit |
How the LIC Plan 914 Maturity Calculator Works
The maturity amount is the sum of three distinct components. Our LIC Endowment Policy Benefit Illustration breaks it down as follows:
- Basic Sum Assured: This is the guaranteed amount you chose at the start.
- Vested Simple Reversionary Bonus: Declared annually by LIC per ₹1000 of Sum Assured. It accumulates throughout the term.
- Final Additional Bonus (FAB): A one-time loyalty bonus paid for policies with terms longer than 15 years.
Formula: Maturity = Basic SA + (Bonus Rate × SA/1000 × Term) + (FAB Rate × SA/1000)
Understanding Death Benefit Scenarios
The "Life Assurance" part of this plan ensures your family's safety. If the policyholder passes away during the term:
- Nominee receives Sum Assured on Death (125% of Basic SA or 7 times the annual premium, whichever is higher).
- Plus, all bonuses accumulated up to the date of death.
- Plus, any applicable Final Additional Bonus.
Impact of GST on LIC Endowment Policy
When using our LIC New Endowment 914 Premium Calculator, remember that the government levies GST on the premium. For traditional plans like 914, the GST on LIC Endowment Policy is 4.5% for the first year and reduces to 2.25% for all subsequent renewal years. This makes renewal premiums slightly cheaper than the initial payment.
Comparison: Endowment vs. Term Insurance
Many users of our LIC Endowment Policy Returns Calculator ask if they should buy a term plan instead. While term insurance gives higher cover for a lower price, it has zero maturity value. Plan 914, on the other hand, acts as a forced savings tool that returns a substantial lump sum at the end, making it ideal for goal-based planning.
EEAT: Why Trust BimaCalculator's Projections?
Our tools are built by financial analysts who track LIC's annual valuation reports. The LIC New Endowment Calculator Online uses the latest declared bonus rates (typically ranging between ₹38 to ₹46 per thousand SA). While we provide highly realistic estimates, we always encourage users to check the official LIC premium charts for absolute accuracy.
⚖️ Professional Disclaimer
The calculations provided by the LIC New Endowment Calculator Online are for illustrative and planning purposes only. LIC Plan 914 is a participating plan, meaning bonuses are not guaranteed and are subject to the corporation's future profitability. BimaCalculator.com is an independent platform and has no legal affiliation with LIC of India. Actual premium rates and maturity payouts may differ based on underwriting rules and tax changes. Please consult a certified financial advisor before making any insurance purchase.
Frequently Asked Questions (FAQ)
A: The minimum policy term for the New Endowment Plan is 12 years. However, for better bonus accumulation and FAB eligibility, a term of 20 years or more is recommended.
A: No, the Sum Assured cannot be increased after the policy has been issued. You would need to buy a fresh policy if you need additional life cover.
A: Yes! Under Section 10(10D) of the Income Tax Act, the entire maturity amount (including bonuses) is 100% tax-free, provided the annual premium is within 10% of the Sum Assured.
A: The policy becomes "Paid-Up." You won't get the full maturity, but you will receive a reduced Sum Assured and the bonuses accumulated during those 3 years at the end of the original policy term.
A: Yes, you can enhance the policy with riders like Accidental Death and Disability Benefit, Term Assurance Rider, and Critical Illness Rider by paying a small additional premium.
A: Yes, premiums can be paid Yearly, Half-yearly, Quarterly, or Monthly (through NACH only). Yearly payments often come with a 2% rebate on the tabular premium.