LIC’s New Endowment Plan is a participating, non‑linked, individual life insurance savings plan that combines life cover with long‑term savings. The policy pays a lump‑sum (sum assured plus bonuses) at the end of the term on survival, and in case of death during the term it pays death benefit plus bonuses to the nominee.
(Note: Earlier Plan No. 914 has been withdrawn from 01.10.2024; LIC has issued a modified New Endowment Plan 2024 under Plan No. 714/UIN update, but the core structure remains “par, non‑linked, life, individual, savings plan”. When you build the page, you may want to mention the current plan code that LIC is actively marketing.)
Key features
- Participating, non‑linked endowment: Eligible for simple reversionary bonuses and final additional bonus, with no market‑linkage.
- Protection plus savings: Provides death benefit during the policy term and a maturity benefit if the life assured survives till the end of term.
- Flexible terms: Policy term options (older 914 structure) range from about 12 to 35 years, letting clients match policy term with life goals.
- Level premiums: Premiums are payable for the entire policy term in chosen mode (yearly, half‑yearly, quarterly, monthly).
- Optional riders: Riders like Accidental Death & Disability, Critical Illness and New Term Assurance Rider can be added for extra protection, subject to plan rules.
Eligibility and basic parameters (typical)
You should lift exact numbers from the latest LIC brochure (New Endowment Plan 2024 / Plan 714), but standard ranges for New Endowment Plan are:
- Minimum entry age: 8 or 18 years depending on version; latest 714 brochure mentions 18 as minimum.
- Maximum entry age: Around 55 years (nearest or last birthday).
- Maximum maturity age: 75 years.
- Policy term: 12 to 35 years.
- Premium Paying Term: Equal to policy term.
- Minimum Basic Sum Assured: ₹1,00,000.
- Maximum Basic Sum Assured: No upper limit, subject to underwriting, in specified multiples.
- Premium modes: Yearly, half‑yearly, quarterly, monthly (via NACH/ECS).
Benefits at a glance
Death benefit (during policy term)
If the life assured dies during the term while the policy is in force, the nominee receives:
- “Sum Assured on Death”, plus
- Vested simple reversionary bonuses, plus
- Final additional bonus, if any.
“Sum Assured on Death” for New Endowment Plan 914 is defined as the higher of:
- 10 times the annualised premium, or
- Basic Sum Assured,
and is subject to a minimum of 105% of total premiums paid (excluding taxes, extra premiums and rider premiums) up to date of death.
Maturity benefit
If the life assured survives the policy term and all premiums are paid:
- Basic Sum Assured, plus
- Vested simple reversionary bonuses, plus
- Final additional bonus (if declared),
are paid as the maturity benefit. This can be used for goals such as child education, marriage, home purchase or retirement corpus.
Who should consider LIC New Endowment Plan?
- Individuals who want a straightforward bonus‑based savings‑cum‑protection plan with flexible term options.
- Conservative savers looking for disciplined long‑term savings with life cover, rather than market‑linked ULIPs or pure term plans.
- Parents and salaried individuals planning for major goals 15–25 years away, who like the comfort of LIC’s traditional endowment structure.
Example: A 30‑year‑old selects a 25‑year New Endowment Plan; she pays level premiums till 55, enjoys life cover throughout, and at maturity receives Basic Sum Assured plus accumulated bonuses to fund retirement or children’s higher education.
Important points and disclaimers
- LIC’s older New Endowment Plan 914 has been withdrawn from October 2024; LIC now offers a modified New Endowment Plan 2024 (Plan 714) with similar core structure but updated conditions—always use the latest brochure/UIN in your site content and client advice.
- As a participating plan, actual returns depend on future bonus declarations; clients should review a detailed benefit illustration to understand possible IRR.
- Surrender value, paid‑up value, loan eligibility and rider terms apply as per LIC rules once the policy acquires a surrender value.
- Policy wording, eligibility grids and rider rules must be taken from the current LIC Sales Brochure, Customer Information Sheet and policy document for New Endowment Plan.
- Tax benefits on premiums and proceeds (for example under sections 80C and 10(10D) of the Income‑tax Act) are subject to conditions and may change; clients should seek personalised tax advice.