Life Insurance Corporation of India (LIC) offers a variety of insurance plans designed to secure your financial future. Among these is the LIC New Endowment Plus Plan 735, a popular unit-linked insurance plan that blends the advantages of investment and protection. This plan has garnered attention for its flexibility, returns, and life cover benefits. To help potential customers better understand their investment and estimate returns, the LIC New Endowment Plus Plan 735 Calculator is an essential tool.

What is LIC New Endowment Plus Plan 735?

The LIC New Endowment Plus Plan 735 is a unit-linked, non-participating individual life insurance plan. It combines life insurance cover with investment options, allowing policyholders to benefit from market-linked returns during the policy tenure.

• The unit-linked feature means your premiums are invested in various funds based on your choice.
• The plan has a regular premium payment mode, paid over the policy term.
• It is designed to give you both protection and long-term savings.
• You can choose among different types of investment funds according to your risk appetite.

The primary attraction of this plan is the mix of insurance protection with investment growth potential, giving you a chance to realize your financial dreams while securing your family’s future.

Key Features of LIC New Endowment Plus Plan 735

Understanding the major features will give you better insight into why this plan might be suitable for your financial goals.

• Entry Age: 90 days (minimum) to 50 years (maximum)
• Maturity Age: 18 years (minimum) to 60 years (maximum)
• Policy Tenure: 10 to 20 years
• Premium Payment: Yearly, half-yearly, quarterly, or monthly (via NACH)
• Sum Assured: At least 10 times the annualized premium
• Lock-in Period: 5 years (no surrender or withdrawals possible before this)
• Partial Withdrawals: Allowed after 5 years for liquidity needs
• Fund Options: Growth, Balanced, Bond, and Secured Fund
• Bonus: Non-participating plan – no bonuses or profit shares

The plan comes with a grace period of 30 days for quarterly/yearly premiums and 15 days for monthly payments. If premiums are not paid within this period, the policy may lapse but can be revived under conditions.

Benefits of LIC New Endowment Plus Plan 735

The plan offers benefits structured around protection and wealth accumulation:

Death Benefit

If the policyholder passes away during the term:

• The higher of the following is paid to the nominee:
  • Basic Sum Assured (after deduction of partial withdrawals made before two years of death)
  • Unit Fund Value
  • 105% of total premiums paid (after deduction of partial withdrawals)

In case death occurs before the risk commencement date, only the Unit Fund Value is payable.

Maturity Benefit

If the policyholder survives the policy term:

• The maturity benefit is the Unit Fund Value as on the date of maturity.

This means the policyholder receives money based on the value of the units purchased in the chosen investment fund, reflecting market performance.

Partial Withdrawals

• Allowed only after five years from the policy start.
• Helps policyholders meet liquidity needs without surrendering the policy.

Surrender Value

• If the policy is surrendered before the lock-in period, the Unit Fund Value is transferred to a Discontinued Policy Fund.
• If surrendered after the lock-in, the Unit Fund Value is paid out as the surrender value.

How Does the LIC New Endowment Plus Plan 735 Work?

When you pay premiums, LIC deducts certain charges (premium allocation charge, policy administration charge, etc.) and invests the remaining amount in the fund you select.

The Unit Linked nature means the value of the units can fluctuate based on market performance. This differs from traditional endowment plans where returns are fixed or guaranteed. Your returns depend on fund performance but come with associated market risks.

You can choose among four types of funds:

• Growth Fund: Higher risk, aimed at capital appreciation.
• Balanced Fund: Moderate risk, a mix of equity and debt.
• Bond Fund: Low risk, mainly invested in fixed income.
• Secured Fund: Very low risk, focusing on capital protection.

Depending on the type of fund chosen, your investment will grow differently over time, reflected in the NAV (Net Asset Value) of the units in your policy.

LIC New Endowment Plus Plan 735 Calculator: Why is it Important?

Calculating your expected returns and premium details manually can be complex due to the unit-linked structure and charges involved.

The LIC New Endowment Plus Plan 735 Calculator is a helpful online tool that allows you to:

• Estimate the premium amount based on the sum assured or vice versa.
• Calculate potential maturity benefits given your investment tenure and expected rate of return.
• Understand the death benefit payable.
• Compare returns on different funds and premium payment modes.
• Plan your investment according to your financial goals with clearer insights.

Using this calculator saves time, reduces errors, and helps you make an informed decision before committing.

How to Use the LIC New Endowment Plus Plan 735 Calculator?

The calculator typically requires you to input the following details:

• Your age at entry.
• Chosen policy term (10 to 20 years).
• The premium amount or desired sum assured.
• Preferred premium payment mode (yearly, half-yearly, quarterly, or monthly).
• Type of fund for investment.
• Expected rate of return (often calculators show scenarios at 4% and 8% returns).
• Other optional inputs such as premium allocation charges or policy administration charges (some calculators use default values).

Once you fill these fields, clicking calculate will give you:

• Total cumulative premium paid over the policy term.
• Estimated fund value at maturity.
• Death benefit amount.
• Approximate maturity benefits based on different assumed returns.

This helps in understanding what your investment can grow to and the insurance benefits you or your beneficiaries will get.

Example Calculation

Suppose Rahul, aged 30, buys this plan with:

• Policy term: 20 years
• Annual premium: Rs. 30,000
• Chosen fund: Growth Fund

If the expected rate of return is 8% p.a.,

• Rahul’s cumulative premium over 20 years = Rs. 6,00,000
• The fund value at maturity can be approximately Rs. 12,22,058 (reflecting market growth)
• The death benefit will be at least the sum assured or the fund value if higher.

This means Rahul potentially doubles his investment given good market performance, with an additional life cover for protection.​

Premium Payment Flexibility

The LIC New Endowment Plus Plan 735 accommodates different payment modes, making it easier to fit into your budget and financial planning.

• Yearly payments provide convenience and often better fund appreciation since less frequent charges apply.
• Quarterly and monthly payments are for those who prefer spreading out payments.
• Payment mode can be chosen initially and changed at policy anniversaries to suit changing financial circumstances.

The grace period ensures you get some leeway in case of delayed payments, preventing policy lapses.

Charges Involved in the Plan

Like any insurance-linked investment, charges are applicable and affect overall returns:

• Premium Allocation Charge: Deducted upfront from premiums before investment.
• Fund Management Charge: Annual charge for managing the investment funds.
• Policy Administration Charge: Regular administrative fees.
• Mortality Charge: Cost of providing life cover.
• Discontinuance and Surrender Charges: Applicable if the policy is discontinued or surrendered.

Understanding these charges helps set realistic expectations from the policy.

Advantages of LIC New Endowment Plus Plan 735

• Dual Benefit: Combines insurance protection with investment growth.
• Flexibility: Various fund options and premium payment modes.
• Liquidity: Partial withdrawals allowed after 5 years.
• Tax Benefits: Premium paid and maturity proceeds eligible for tax benefits under prevailing tax laws.
• Transparency: Regular updates on fund performance by LIC.
• Revival Facility: Policies can be revived within the revival period if premiums are missed.

Things to Consider Before Buying

• The investment is subject to market risk; returns are not guaranteed.
• There is a lock-in of 5 years, so funds are illiquid during this period.
• Charges reduce the initial invested amount, impacting net returns.
• Evaluate your risk appetite before choosing funds.
• Use the LIC New Endowment Plus Plan 735 Calculator to project realistic outcomes.

Where to find LIC New Endowment Plus Plan 735 Calculator Online?

You can use official LIC websites, trusted insurance portals, and financial service websites that offer the LIC New Endowment Plus Plan 735 Calculator for free. These tools help you simulate different scenarios instantly for better planning​

Frequently Asked Questions

Conclusion

The LIC New Endowment Plus Plan 735 is a solid option for individuals seeking a blend of life insurance and market-linked investment returns. With premium flexibility, a choice of investment funds, and built-in life cover, it addresses both protection and wealth creation needs.

Using the LIC New Endowment Plus Plan 735 Calculator before investing is highly recommended. It empowers you to estimate your potential benefits, understand premium commitments, and make informed decisions aligned with your financial goals.