LIC New Endowment Plan 914 Calculator

The LIC New Endowment Plan 914 is a classic insurance-cum-savings plan offered by Life Insurance Corporation of India (LIC). It is a participating, non-linked endowment plan aimed at providing financial protection along with savings benefits to the policyholder. This plan has been popular among individuals looking for a secure investment coupled with insurance coverage.

Launch Date and Withdrawal Date

The LIC New Endowment Plan 914 was launched by LIC several years ago as a trusted endowment product. It attracted many customers due to its blend of protection and savings benefits.

Launch Date: The plan has been available for new policyholders for several years before 2024.

Withdrawal Date: LIC officially withdrew the New Endowment Plan 914 from new business acceptance on 1st October 2024. This was done to introduce a modified and improved version called LIC New Endowment Plan 714 with some updated features and premium rates effective from the same date.

Thus, existing policyholders can continue their policies under Plan 914, but new buyers must consider the updated Plan 714. Despite this, understanding Plan 914 remains important as many policies are still active.

What is LIC New Endowment Plan 914?

The LIC New Endowment Plan 914 is a participating endowment plan which means it participates in the profits of LIC and policyholders receive bonuses along with the sum assured. It is a non-linked traditional plan providing:

• Life insurance protection for the policy term
• Savings accumulation through regular premium payments
• Bonus additions declared by LIC
• Loan facility against the policy after premiums are paid for some years

This dual benefit of protection plus savings is ideal for people who want to secure their family’s financial future while building a corpus for goals like children’s education, marriage, or retirement.

Eligibility Criteria

To take a LIC New Endowment Plan 914 policy, a few eligibility points must be kept in mind:

This flexibility allows customers to choose the term and premium payment mode as per their convenience.

Key Features and Benefits

1. Life Cover and Death Benefit

In case of the unfortunate demise of the insured during the policy term, LIC pays the nominee the Sum Assured on Death along with accrued bonuses. The Sum Assured on Death is the highest of the following:

• 125% of Basic Sum Assured
• 10 times of annual premium
• 105% of all premiums paid as on date of death

This ensures adequate financial protection for the family.

2. Maturity Benefit

On surviving the policy term, the policyholder receives:

• Basic Sum Assured
• Accrued Simple Reversionary Bonuses (declared yearly)
• Final Additional Bonus (if any)

This lump sum amount helps meet your financial goals.

3. Bonuses

Being a participating plan, LIC declares Simple Reversionary Bonuses annually based on profits. There is also a Final Additional Bonus paid at maturity along with the final payout.

4. Loan Facility

After payment of premiums for at least 2 full years, the policyholder can avail a loan against the policy for emergencies or liquidity needs.

5. Surrender Value

If the policyholder decides to surrender the policy after paying premiums for at least 2 years, they are eligible for the surrender value, which is either the Special Surrender Value or Guaranteed Surrender Value—whichever is higher.

6. Paid-Up Value

If premiums are stopped after paying at least 1 or 2 full years’ premiums, the policy doesn’t lapse but becomes a paid-up policy with reduced benefits according to premiums paid.

7. Tax Benefits

Premiums paid under this plan are eligible for tax deduction under Section 80C of the Income Tax Act. Additionally, maturity proceeds and death benefits are tax-free under Section 10(10D).

8. Flexible Premium Payment Modes

You can choose to pay premiums monthly, quarterly, half-yearly, or yearly based on your comfort and budget.

LIC New Endowment Plan 914 Calculator

This plan has different premium rates based on age, term, sum assured, and premium frequency. Calculating the exact premium and maturity amount manually can be complex.

Hence, LIC and several financial websites provide an LIC New Endowment Plan 914 calculator tool to estimate:

• The premium amount payable regularly for selected sum assured and term
• Expected maturity amount (sum assured + bonuses)
• Death cover during the policy term

How to Use the LIC New Endowment Plan 914 Calculator?

1. Enter your age and select the policy term (12-35 years).
2. Input your desired Basic Sum Assured (minimum ₹1,00,000).
3. Choose the premium payment mode (monthly, quarterly, etc.).
4. The calculator will display:
   • Premium payable (excluding GST)
   • Estimated maturity benefits (based on bonus rates)
   • Death benefit sum assured

This calculator helps you assess affordability and benefits before buying the policy.

You may find online LIC New Endowment Plan 914 premium calculators on sites like LIC’s official portal or trusted insurance portals.

Example Calculation

For instance, if a 30-year-old wants to buy LIC New Endowment Plan 914 with:

• Policy term: 20 years
• Basic Sum Assured: ₹10,00,000
• Yearly premium mode

The calculator might show:

• Annual Premium: ₹90,000 approx. (excluding GST)
• Maturity Benefit (estimated): ₹15,00,000 after 20 years
• Death Benefit: Higher of 125% of sum assured or 10 times annual premium

These are indicative only; actual values depend on LIC’s official premium rates and bonuses.

Why Choose LIC New Endowment Plan 914?

• Savings and Protection: You get both insurance and savings under one plan.
• Bonuses Enhance Returns: Participating plan bonuses boost maturity amounts beyond basic sum assured.
• Flexible Terms: Policy term and premium mode flexibility suit different financial needs.
• Loan Facility: You can get a loan against the policy if needed.
• Tax Benefits: Premiums paid qualify for tax relief, and payouts are tax-free.
• Reputed Insurer: LIC is a trusted government-owned insurer with a strong claim settlement record.

Things to Consider

• The plan was withdrawn for new business from 1st October 2024, replaced by Plan No. 714 with some changes.
• LIC New Endowment Plan 914 is suitable for conservative investors looking for guaranteed protection and bonus-based savings.
• Premium payments are for the full term and must be timely to keep benefits active.
• The exact bonus rates vary year to year and are declared by LIC based on profits.
• Use the official LIC calculator or consult LIC agents for precise premium and maturity values.

Alternatives After Withdrawal of Plan 914

After withdrawal of Plan 914, LIC introduced the New Endowment Plan 714 which has:

• Revised premium rates
• Increased minimum sum assured to ₹2,00,000
• Modified entry age limits and other updated features

New customers should explore LIC Plan 714 as a similar product with updated benefits.

Frequently Asked Questions

Conclusion

LIC New Endowment Plan 914 has been a preferred plan by many for its balance of financial protection and savings. Though it is withdrawn for new policies since October 2024, existing policyholders continue to benefit from it. Understanding your policy, knowing how to calculate premiums, and maturity amounts using the LIC New Endowment Plan 914 calculator can help you manage your finances wisely.