Your Future, Secured
Introduction
When it comes to financial planning, most of us seek a balance between savings and protection. That’s exactly what LIC’s New Endowment Plan 714 offers—a perfect blend of life cover and assured returns. Launched on October 1st, 2024, by the Life Insurance Corporation of India (LIC), this plan aims to provide long-term savings while ensuring financial protection for your family in your absence.
Whether you’re planning for your child’s future, your retirement, or just building a corpus over time, LIC New Endowment Plan 714 is designed to deliver guaranteed returns, life cover, tax benefits, and added bonuses. Let’s explore this policy in a detailed yet simplified manner.
🌟 What is New Endowment Plan 714?
LIC New Endowment Plan 714 is a non-linked, participating, individual life assurance plan. This means:
- It is not dependent on the market (non-linked).
- It participates in the profits of LIC (bonus-earning).
- It offers a combination of protection + savings.
This plan provides financial support to the family of the insured in the event of unfortunate death anytime during the policy term. It also provides lump sum returns on survival at the end of the policy term. The plan also takes care of liquidity needs through loan facilities.
📌 Key Highlights at a Glance
| Feature | Description |
|---|---|
| Plan Name | LIC New Endowment Plan 714 |
| Type | Traditional, Non-Linked, Participating |
| Launch Date | 1st October 2024 |
| Maturity Benefits | Sum Assured + Bonus + Final Additional Bonus |
| Death Benefits | Sum Assured on Death + Bonus + Final Additional Bonus |
| Participation in Profits | Yes (eligible for bonuses) |
| Loan Facility | Yes, after 1 policy year |
| Tax Benefits | Under Section 80C & 10(10D) |
| Online Purchase Available | Yes – via Credit/Debit Card, UPI, Net Banking, Wallets |
🎯 Eligibility Criteria
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age | 8 years | 55 years |
| Policy Term | 12 years | 35 years |
| Maturity Age | — | 75 years |
| Basic Sum Assured | ₹2,00,000 | No Upper Limit |
| Premium Paying Term | Same as Policy Term | — |
| Premium Payment Modes | Monthly, Quarterly, Hly, Yrly | — |
📈 How Does the Plan Work?
Once you choose your sum assured and policy term, your premium is calculated. You will need to pay premiums throughout the policy term. On survival, you receive the full maturity benefit; in case of untimely death, the nominee gets the death benefit.
The plan participates in LIC’s profits, so every year, a simple reversionary bonus may be added. If eligible, a final additional bonus (FAB) is also payable at the time of maturity or death.
💸 Benefits Explained
🔹 1. Maturity Benefit
On survival till the end of the policy term, you receive:
- Sum Assured +
- Vested Simple Reversionary Bonuses +
- Final Additional Bonus (FAB) (if any)
This maturity corpus can be used for retirement, children’s education, or any other financial goal.
🔹 2. Death Benefit
If the policyholder dies during the term:
- The nominee will receive Sum Assured on Death +
- Accrued Bonuses +
- FAB (if applicable)
Sum Assured on Death = Higher of:
- Basic Sum Assured, or
- 7 times the Annualised Premium
(Minimum death benefit = 105% of premiums paid till death)
🔹 3. Bonuses
- Simple Reversionary Bonus: Declared annually and added to the policy.
- Final Additional Bonus (FAB): One-time bonus, paid only at the end, if eligible.
💠 Optional Riders (Extra Protection)
You can enhance your coverage by paying a small additional premium for:
- Accident Benefit & Disability Rider
- Term Assurance Rider
- Critical Illness Rider
- Premium Waiver Benefit Rider
These riders provide coverage for accidental death/disability, critical illnesses, and premium waiver in case of eventualities.
🧮 LIC Plan 714 – Example with Tabular Illustration
Let’s understand with a real-world example:
- Policyholder’s Age: 30 years
- Policy Term: 25 years
- Sum Assured: ₹10,00,000
- Premium (Annual): ₹2,85,712 (approx)
- Riders Included: AD & DB Rider, Term Rider (Optional)
📊 Estimated Benefits Table
| Policy Year | Age | Approx Life Cover | Approx Accidental Cover |
|---|---|---|---|
| 2025 | 31 | ₹5,24,000 | ₹10,24,000 |
| 2026 | 32 | ₹5,48,000 | ₹10,48,000 |
| 2027 | 33 | ₹5,72,000 | ₹10,72,000 |
| 2028 | 34 | ₹5,96,000 | ₹10,96,000 |
| 2029 | 35 | ₹6,20,000 | ₹11,20,000 |
| 2030 | 36 | ₹6,44,000 | ₹11,44,000 |
| 2031 | 37 | ₹6,68,000 | ₹11,68,000 |
| 2032 | 38 | ₹6,92,000 | ₹11,92,000 |
| 2033 | 39 | ₹7,16,000 | ₹12,16,000 |
| 2034 | 40 | ₹7,40,000 | ₹12,40,000 |
| 2035 | 41 | ₹7,64,000 | ₹12,64,000 |
| 2036 | 42 | ₹7,88,000 | ₹12,88,000 |
| 2037 | 43 | ₹8,12,000 | ₹13,12,000 |
| 2038 | 44 | ₹8,36,000 | ₹13,36,000 |
| 2039 | 45 | ₹8,75,000 | ₹13,75,000 |
| 2040 | 46 | ₹9,01,500 | ₹14,01,500 |
| 2041 | 47 | ₹9,30,500 | ₹14,30,500 |
| 2042 | 48 | ₹9,59,500 | ₹14,59,500 |
| 2043 | 49 | ₹10,01,000 | ₹15,01,000 |
| 2044 | 50 | ₹10,42,500 | ₹15,42,500 |
| 2045 | 51 | ₹10,91,500 | ₹15,91,500 |
Note: These are approximate figures based on projected bonus rates.
🎁 Rebate Benefits
LIC offers premium discounts based on:
🔹 Mode Rebate
| Mode | Rebate |
|---|---|
| Yearly | 2% of Tabular Premium |
| Half-Yearly | 1% of Tabular Premium |
🔹 Sum Assured Rebate
| Sum Assured Range | Rebate |
|---|---|
| ₹2L – ₹5L | NIL |
| ₹5L – ₹10L | 2.5% of Sum Assured |
| ₹10L and above | 4% of Sum Assured |
🏦 Loan & Surrender Options
- Loan Facility: Available after completion of 1 policy year.
- Surrender Value: Available if premiums are paid for at least 2 years.
- Guaranteed Surrender Value + Bonus (if any) is paid.
🧾 Tax Benefits
Enjoy dual tax benefits:
- Premiums paid are deductible under Section 80C
- Maturity/Death proceeds are tax-free under Section 10(10D)
🔐 Additional Policy Information
| Feature | Description |
|---|---|
| Lock-in Period | 1 year |
| Cooling-off Period | 30 days from policy receipt |
| Suicide Clause | 80% of premiums refunded if suicide within 12 months |
| Policy Revival | Within 5 years from first unpaid premium |
| Backdating Interest | Allowed within same financial year |
| Proposal Form | Form No. 300 or 360 |
| Assignment/Nomination | Allowed |
📲 How to Buy LIC Plan 714?
You can now buy LIC New Endowment Plan 714 online with ease:
- Visit LIC’s official New Business Portal
- Make payment using Credit/Debit Card, UPI, Net Banking, or Wallets
- Fill out Proposal Form 300 or 360
- Get e-policy documents instantly!
✅ Who Should Buy This Plan?
LIC New Endowment Plan 714 is ideal for:
- Young professionals seeking life cover + savings
- Parents planning for child’s future
- Individuals nearing retirement looking for tax-saving and corpus
- Anyone wanting safe investment with guaranteed returns
📣 Final Words
In today’s unpredictable world, having a plan that guarantees both security and savings is a smart choice. LIC’s New Endowment Plan 714 ensures your money grows with bonuses and protects your loved ones in your absence. It’s more than just a policy—it’s a promise of financial stability, peace of mind, and future planning.
If you’re looking to start a secure financial journey, this plan can be your trusted companion.