LIC new endowment 914
On February 1, 2020, LIC of India launched the LIC New Endowment Plan 914 (LIC Table No. 914), a traditional life insurance plan that offers guaranteed returns and protection. This plan is available for policy terms ranging from a minimum of 12 years to a maximum of 35 years. The minimum age to enroll is 8 years, while the maximum age is 55 years, with coverage extending up to 75 years. You can conveniently purchase the LIC New Endowment Plan 914 online using credit/debit cards, net banking, UPI, or digital wallets through LICs New Business Platform.
Description
The LIC New Endowment Plan (Plan 914) is a traditional, non-linked endowment plan designed to provide a combination of life insurance and savings. It ensures financial security for the policyholders family in case of an unforeseen event, while also allowing for the accumulation of savings over the policy term. Here is a detailed description, including eligibility criteria, benefits, tabular data, and examples.
Key Features
- Type: Non-linked, with-profits endowment plan.
- Death Benefit: In case of the policyholders death during the policy term, the nominee receives the sum assured along with bonuses.
- Maturity Benefit: If the policyholder survives the policy term, they receive the sum assured plus any bonuses declared.
- Premium Payment: The policyholder has the option to choose between regular premium payment or limited premium payment.
Eligibility Criteria
- Minimum Entry Age: 90 days (0.25 years)
- Maximum Entry Age: 55 years for a 25-year term, 57 years for a 20-year term, and 60 years for a 15-year term.
- Policy Term: 10 to 25 years
- Premium Payment Term: Same as policy term or as specified by the policyholder.
- Minimum Sum Assured: ₹2,00,000
- Maximum Sum Assured: No upper limit, but subject to underwriting norms.
- Premium Payment Mode: Annual, Half-yearly, Quarterly, or Monthly.
Benefits
- Maturity Benefit: The policyholder receives the sum assured along with vested bonuses at the end of the policy term.
- Death Benefit: In the event of the policyholders death during the policy term, the nominee receives the sum assured plus any accrued bonuses.
- Bonus: The plan participates in LICs profit, with bonuses declared based on the performance of the LIC.
- Tax Benefits: Premiums paid qualify for tax deductions under Section 80C of the Income Tax Act. The maturity and death benefits are tax-free under Section 10(10D), subject to applicable conditions.
Tabular Data Overview
| Feature | Details |
|---|---|
| Plan Name | LIC New Endowment Plan 914 |
| Type | Non-linked, With-Profits Endowment Plan |
| Entry Age | 90 days to 55/57/60 years (varies by term) |
| Policy Term | 10 to 25 years |
| Premium Payment Term | Same as policy term or specified |
| Minimum Sum Assured | ₹2,00,000 |
| Maximum Sum Assured | No limit (subject to underwriting) |
| Maturity Benefit | Sum Assured + Bonuses |
| Death Benefit | Sum Assured + Bonuses |
| Bonus | Vested bonuses as declared |
| Tax Benefits | Section 80C and Section 10(10D) |
Example Scenarios
Scenario 1
- Policyholder: 30 years old
- Sum Assured: ₹5,00,000
- Policy Term: 20 years
- Premium Payment Term: 20 years
- Annual Premium: Approximately ₹35,000 (subject to actual underwriting)
- Maturity Benefit: If the policyholder survives the term, they will receive ₹5,00,000 plus any declared bonuses. If bonuses amount to ₹3,00,000, the total at maturity will be ₹8,00,000.
- Death Benefit: If the policyholder passes away during the policy term, the nominee will receive ₹5,00,000 plus any accrued bonuses.
Scenario 2
- Policyholder: 40 years old
- Sum Assured: ₹10,00,000
- Policy Term: 25 years
- Premium Payment Term: 25 years
- Annual Premium: Approximately ₹70,000 (subject to actual underwriting)
- Maturity Benefit: If the policyholder survives the term, they will receive ₹10,00,000 plus any bonuses. If bonuses amount to ₹5,00,000, the total at maturity will be ₹15,00,000.
- Death Benefit: If the policyholder dies during the policy term, the nominee receives ₹10,00,000 plus any bonuses.
Conclusion
The LIC New Endowment Plan 914 is an attractive option for individuals seeking a combination of life insurance and a savings component. With its structured premium payment and potential for bonuses, it can help policyholders achieve their financial goals while providing security for their loved ones. As with any financial product, its advisable to assess individual financial needs and consider consulting a financial advisor for personalized advice.
