LIC New Endowment Plan 714 Calculator: Premium & Maturity
The LIC New Endowment Plan 714 Calculator is a comprehensive tool designed to help you check the exact returns on your life insurance investment. It instantly calculates your Annual Premium, total Maturity Amount, and provides a year-by-year illustration of your Death Benefit and Loan Eligibility.
Whether you are planning for a child’s future or a safe retirement corpus, this tool helps you verify if the returns meet your financial goals before you sign the policy document.
How to Use This LIC Calculator
We have designed this tool to mimic an official LIC illustration but in a faster, easier format.
- Enter Entry Age: Input your current age (Minimum 8 years, Maximum 55 years).
- Select Policy Term: Choose how long you want to pay premiums (12 to 35 years).
- Basic Sum Assured: Enter the guaranteed amount you want to be insured for (Minimum ₹1,00,000).
- Accident Rider (Optional): Select if you want additional coverage for accidental death.
- View Result: Click “Generate Illustration” to see your Premium, Total Returns, and Internal Rate of Return (IRR).
Note: The tool generates a detailed table at the bottom showing exactly how much loan you can take against your policy in any given year.
What is LIC New Endowment Plan (Table 714)?
The LIC New Endowment Plan (Plan No. 914, formerly 814/714) is a “Participating Non-Linked” plan. This means it is a traditional insurance policy where:
- Participating: You share in LIC’s profits through Annual Bonuses and Final Additional Bonuses.
- Non-Linked: Your money is not invested in the stock market, keeping it safe from market crashes.
It offers a dual benefit: Protection (financial support to family if the policyholder passes away) and Savings (a lump sum payout at maturity if the policyholder survives).
Real-Life Example: How Returns Are Calculated
Let’s assume Mr. Sharma, aged 30 years, buys this plan for a policy term of 20 years with a Sum Assured of ₹10 Lakhs.
- Annual Premium: Approx. ₹50,000 + GST.
- Total Investment: Over 20 years, he pays approx. ₹10 Lakhs.
- Maturity Benefit: At age 50, he receives approx. ₹17 Lakhs to ₹20 Lakhs (depending on bonus rates).
- Death Benefit: If he passes away in the 5th year, his family immediately receives ₹10 Lakhs + accrued bonuses, even though he only paid premiums for 5 years.
The Math: Maturity & Death Benefit Formulas
Understanding the calculation helps you trust the numbers. This plan’s payout relies on three components:
Maturity Benefit = Basic Sum Assured + Vested Simple Reversionary Bonuses + Final Additional Bonus
Death Benefit = Sum Assured on Death + Vested Simple Reversionary Bonuses + Final Additional Bonus
- Sum Assured: The guaranteed amount you chose at the start.
- Reversionary Bonus: Declared by LIC every year (usually per ₹1,000 of Sum Assured) and added to your policy account.
- Final Additional Bonus (FAB): A one-time loyalty bonus paid at the end for policies held for a long duration (usually 15+ years).
Why Use Planmyreturns LIC Calculator?
Most agents only tell you the Maturity Amount. Our calculator reveals the hidden details:
- Calculates IRR (True Return): Insurance plans often confuse investors with “Lakhs” in returns. Our tool calculates the IRR (Internal Rate of Return) percent, allowing you to compare LIC 714 against PPF, FDs, or Mutual Funds fairly.
- Loan Surrender Value: Need money in an emergency? The “Year-wise Illustration” table shows exactly how much loan you can avail from LIC after 3 years.
- Life Cover Visualization: See how your risk cover grows every year as bonuses are added to the Sum Assured.
Frequently Asked Questions (FAQs)
Yes. Under Section 10(10D) of the Income Tax Act, the maturity proceeds (including bonuses) are completely tax-free, provided the annual premium does not exceed 10% of the Sum Assured.
Yes, a loan facility is available after payment of premiums for at least 2 full years (previously 3 years). Our calculator’s table shows the estimated loan amount for each year.
If you stop paying after 2 years, the policy becomes “Paid-up.” The Sum Assured reduces proportionately, and you will receive a reduced amount at maturity. If you stop before 2 years, you lose the money paid.
It is highly recommended. For a very small additional premium, your family receives an additional Sum Assured if death occurs due to an accident. For example, if your base cover is ₹10 Lakhs, the total payout becomes ₹20 Lakhs + Bonuses.
Plan 714 is a pure endowment plan that ends at maturity. Jeevan Anand is a “Whole Life” plan where you get the maturity amount and the life cover continues until death (even after age 100).