LIC New Endowment Plan 714
Premium and Maturity Calculator
Calculation Details
Maturity Details (Approximate)
Total Maturity Value
Death Benefit Details
The LIC New Endowment Plan 714 is a popular life insurance policy designed to offer both protection and savings benefits. This plan is perfect for individuals who want a safe, secure way to build wealth over time while ensuring financial protection for their loved ones. One of the essential tools for anyone interested in this plan is the LIC New Endowment Plan 714 Calculator, which helps estimate premiums, maturity values, and other benefits.
What is LIC New Endowment Plan 714?
The LIC New Endowment Plan 714 is a classic endowment insurance plan that combines the features of life cover and savings. This means you get financial protection during the policy term, and if you survive till maturity, you receive the maturity amount, which includes the sum assured plus bonuses.
Key Features
- Eligibility Age: 8 to 50 years
- Policy Term: 12 to 35 years
- Minimum Sum Assured: ₹2,00,000
- Premium Payment Modes: Yearly, Half-Yearly, Quarterly, Monthly (NACH)
- Maturity Benefits: Sum Assured + Simple Reversionary Bonus + Final Additional Bonus
- Death Benefits: Sum Assured + Accrued Bonuses
- Loan Facility: Available after payment of first full year premium
- Surrender Value: Available after 1 year
This plan is a participating plan, meaning it is eligible for bonuses declared by LIC based on the company’s profits. It is non-linked, so your returns are not affected by market fluctuations, making it a safe investment.
Why Use LIC New Endowment Plan 714 Calculator?
Before buying any insurance policy, it is crucial to understand the premiums payable and the benefits you will get. The LIC New Endowment Plan 714 Calculator is an online tool that simplifies this process. Here’s why it is important:
- Estimate Premiums: Calculate the exact premium amount you need to pay based on your age, policy term, and sum assured.
- Project Maturity Amount: Get an estimate of maturity benefits including bonuses.
- Understand Death Benefits: Know the financial protection your nominee will receive.
- Plan Your Finances: Helps you decide if the premium fits into your budget.
- Compare Premium Modes: See how paying yearly, half-yearly, quarterly, or monthly affects your premiums.
Using the calculator ensures you get clear insights before investing, helping you make an informed decision.
How to Use LIC New Endowment Plan 714 Calculator?
The calculator is straightforward and user-friendly. Usually, it requires the following inputs:
- Age of the Policyholder: Your current age or age at entry.
- Policy Term: Number of years you want to keep the policy active (between 12 to 35 years).
- Sum Assured: The insurance amount you want (minimum ₹2,00,000).
- Premium Payment Mode: Choose yearly, half-yearly, quarterly, or monthly.
- Premium Paying Term: Usually the same as the policy term in this plan.
After you input these details, the calculator shows:
- Annual premium payable plus GST (Goods and Services Tax).
- Maturity amount expectation including bonuses.
- Death benefit details.
- Loan and surrender value eligibility.
You can experiment with different terms and sum assured values to see how premiums and benefits change.
Explanation of Important Terms
Understanding the LIC New Endowment Plan 714 calculator also means knowing some basic insurance terms:
Sum Assured
This is the minimum guaranteed amount payable on maturity or death. For example, if you choose ₹5,00,000 as sum assured, this is the base amount guaranteed by LIC.
Bonus
LIC declares profits to policyholders in the form of bonuses yearly. There are two types here:
- Simple Reversionary Bonus: Declared every year and linked to sum assured.
- Final Additional Bonus (FAB): A one-time bonus paid at maturity or death for policies completed the full term.
Premium Payment Term
This is the period during which premiums need to be paid. In this plan, it is generally equal to the policy term.
Maturity Benefit
If you survive the policy term, LIC will pay the basic sum assured plus accrued bonuses.
Death Benefit
If the policyholder dies before maturity, the nominee receives the sum assured plus vested bonuses.
Calculation of Premium
The premium amount depends on various factors:
- Sum Assured chosen
- Age of the policyholder
- Policy term
- Premium payment mode
- Rebate available on higher sum assured and yearly premium payments
For instance, LIC offers a 2% rebate on yearly premiums and a 2.5% rebate for sum assured between ₹5,00,000 to ₹10,00,000.
GST is applied as per current rates: 4.5% in the first policy year and 2.25% from the second year onwards.
The formula to calculate death sum assured (used for benefit calculation) is the higher of:
- 100% of the basic sum assured, or
- 7 times the annualized premium
Your LIC New Endowment Plan 714 calculator takes all these factors into account to show accurate premium figures.
Benefits of LIC New Endowment Plan 714
Dual Benefit of Protection and Savings
You get life cover to protect your family in case of untimely demise, plus a savings plan with attractive bonuses.
Guaranteed Returns
The sum assured is guaranteed, and bonuses declared add to your returns, ensuring a secure financial future.
Loan Facility
You can avail a loan against the policy after paying premiums for the first year, useful in emergencies.
Flexibility in Premium Payments
You can choose how often you want to pay premiums: yearly, half-yearly, quarterly, or monthly through NACH.
Surrender and Paid-Up Benefits
If you need to exit early, surrender values and paid-up benefits provide financial relief.
Optional Riders
You can enhance your policy with riders like Accidental Death and Disability, Accident Benefit, or Premium Waiver.
Illustration of LIC New Endowment Plan 714 Benefits
To better understand, here is an example for a 29-year-old policyholder choosing a sum assured of ₹10,00,000 with a 21-year policy term:
| Policy Year | Age | Cumulative Premium Paid | Sum Assured | Cumulative Bonus | FAB (Final Additional Bonus) | Death Benefit | Maturity Amount (Return) |
|---|---|---|---|---|---|---|---|
| 1 | 29 | ₹48,817 | ₹10,00,000 | ₹45,000 | ₹0 | ₹10,45,000 | ₹0 |
| 10 | 38 | ₹4,78,711 | ₹10,00,000 | ₹4,50,000 | ₹0 | ₹14,50,000 | ₹0 |
| 21 | 49 | ₹10,04,137 | ₹10,00,000 | ₹9,45,000 | ₹1,00,000 | ₹20,45,000 | ₹20,45,000 |
The policyholder will get a maturity amount of about ₹20.45 lakhs if all premiums are paid throughout and the policy matures.
Important Policies Around LIC New Endowment Plan 714
Free Look Period
Policyholders can return the policy within 30 days if dissatisfied with the terms to get the premium refunded.
Suicide Clause
If death is due to suicide within 12 months from policy commencement or revival, the nominee gets 80% of premiums paid or surrender value, whichever is higher.
Policy Revival
If premiums are not paid on time, the policy lapses but can be revived within 5 years by paying overdue premiums with interest.
Settlement Options
You can choose to receive maturity or death benefits as a lump sum or in installments over 5, 10, or 15 years.
Frequently Asked Questions
What is LIC New Endowment Plan 714?
It is a traditional endowment life insurance plan that offers both life cover and savings benefits with bonuses over the policy term.
Who is eligible to buy this plan?
Individuals between 8 to 50 years of age can purchase this plan, with policy terms ranging from 12 to 35 years.
What is the minimum sum assured under this plan?
The minimum sum assured starts from ₹2,00,000. You can choose a higher amount based on your financial goals.
What happens if the policyholder dies during the policy term?
The nominee receives the sum assured plus accrued bonuses as a death benefit.
Can the policy be surrendered before maturity?
Yes, surrender value is available after paying premiums for at least one year.
What are the tax benefits under this plan?
Premiums paid and maturity proceeds are eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, subject to conditions.
Conclusion
The LIC New Endowment Plan 714 Calculator is an essential tool for anyone considering this popular life insurance policy. It helps in understanding premium obligations, expected returns, and death benefits clearly and transparently.
By using the calculator, policyholders can plan better financially and choose the right sum assured and policy term as per their requirement. The New Endowment Plan 714 offers a balanced combination of protection and savings making it suitable for individuals who want security and assured returns.