LIC New Endowment Plan 914
LIC New Endowment Plan 914 gives savings and protection. It helps a family with money if the insured person dies during the policy’s time. Want to save money often and get life insurance? This could be a good choice for you
Let’s look at the New Endowment Plan 914 chart:
Age | Min. age – 8 yrs. Max. age -55 yrs. |
Policy Term | Min. Term -12 yrs. Max. Term -35 yrs. |
Sum Assured | Min. Sum Assured – Rs. 1, 00,000/- Max. Sum Assured – No Limit (depend on your income) |
Maturity Age | 75 Years |
Premium Paying Mode | Monthly, Quarterly, Half-Yearly and Yearly |
Riders (Optional) | a. Accidental and Disability Benefit Rider, b. Term Assurance Rider, c. Accidental Benefit Rider, d. New Critical Illness Benefit Rider e. Premium Waiver Benefit Rider |
Tax Benefits | Premium is exempted (80c) and Maturity/Death Claim is Tax-Free (10(10D) |
Maturity Amount | Basic Sum Assured + Accumulated Simple Reversionary Bonus during Policy Term + Final Additional Bonus |
Death Claim | Death Sum Assured + Accumulated Simple Reversionary Bonus till the time of Death + Final Additional Bonus + Rider (if taken) |
Death Sum Assured | Basic Sum Assured or 7 times of Annualized Premium, whichever is higher. |
LIC New Endowment Plan 914 details and benefits:
Death Benefit
If the policyholder dies during the policy term, the “Sum Assured on Death” plus any earned bonus will be paid to the nominee as a death benefit, and the policy will end. The death benefit is either the basic sum guaranteed or seven times the annualized premium, whichever is higher, with a minimum of 105% of all premiums paid.
Maturity Benefit
If the insured survives the policy term, they will receive the “Sum Assured on Maturity.” This includes Simple Reversionary Bonuses and Final Additional Bonuses.
Profit Participation
While active, the policy will share in company profits and be eligible for Simple Reversionary Bonuses based on performance. There may be a Final (Additional) Bonus in the year a death or maturity claim is made. Paid-up policies won’t receive this bonus.
Rider Option
LIC New Endowment Plan 914 includes five optional riders for which an additional premium is required. The policyholder can, however, choose between the “accidental death and disability benefit rider” and the “accident benefit rider.” As a result, a policy may cover a maximum of four riders mentioned above. That means policy holder can take between one to the maximum of four rider in this plan.
- Accidental Death and Disability Benefit Rider or Accident Benefit Rider,
- New Term Assurance Rider,
- New Critical Illness Benefit Rider,
- Premium Waiver Benefit Rider.
Tax Benefits
The premiums up to 150,000 are not taxed under section 80C of the Income Tax Act. Also, section 10(10D) of the same act says that money received from maturity or death claim is not taxed subject to meeting all the terms and condition.
Rebate
LIC New Endowment Plan offers rebates based on premium paying modes and the sum-assured rebate that we have chosen.
Premium paying mode:
Yearly – 2% of Tabular Premium
Half-yearly – 1% of Tabular premium Quarterly.
Monthly – NIL
Sum Assured Rebate:
|
BASIC SUM ASSURED |
REBATE |
|
Rs. 1,00,000/- to Rs. 1,95,000/- |
– |
|
Rs. 2,00,000/- to Rs. 4,95,000/- |
2.00 % Basic Sum Assured |
|
Rs. 5,00,000/- and above |
3.00 % Basic Sum Assured |
Loan Facility
Policyholders can also use the loan facility if they have paid their premiums for at least two years and are subject to the LIC’s other terms and restrictions. The interest rate for the loan and the entire loan period will be determined by the rates declared by LIC based on IRDAI approval.
Grace Period
There will be a grace period of 30 days for yearly, half-yearly, or quarterly payments and 15 days for monthly payments beginning on the date of the first unpaid premium.
The grace period mentioned above also applies to rider premiums, which must be paid in addition to the base insurance premium.
Revival Period
The policy will expire if premiums are not paid within the grace period. If necessary, lapsed insurance may be revived within five years, starting on the first unpaid premium date and before the date of maturity.
Surrender Value
The policy can be surrendered only after paying the required premiums for at least two years. LIC may pay the policyholder the “Special Surrender Value” or the “Guaranteed Surrender Value,” whichever is greater.
Free Look Period
If a policyholder is unhappy with the terms and conditions of the insurance policy, he or she has 15 calendar days from receipt to return it and receive a full refund.
LIC Plan 914 with Example:
Plan: LIC New Endowment Plan 914 Premium and Maturity Calculation
Age:30
Term:20
Sum Assured Taken: 600000
1st-year Premium With TAX 4.5%:
Yearly: (29170 + 1313) = 30483
Half-yearly: (14740 + 663) = 15403
Quarterly: (7448 + 335) = 7783
Monthly (ECS): (2483 + 112) = 2595
Note: Remember, tabular rebate comes into play when you choose yearly, half-yearly, quarterly, or monthly into the premium.
From 2nd year Premium With TAX 2.25%:
Yearly: (29170 + 656) = 29826
Half-yearly: (14740 + 332) = 15072
Quarterly: (7448 + 168) = 7616
Monthly (ECS): (2483 + 56) = 2539
Returns at Maturity Time:
Sum Assured: 600000
Bonus: 468000
Final Additional Bonus: 42000
Total Approximate Return at Maturity Time: (600000+468000+42000) =1110000
The total approximate premium we paid in these 20years: 597177.
In the Case of Death Before Maturity:
Suppose the policy holder dies just after payment of 6th year premium,
he will receive (100% of Sum Assured + Bonus till 6th Year)
(500000 + 140400) = 640400.
Additional (Rider) Benefits:
If the policy holder takes Term Rider, then additional premium the policy holder will have to pay every year along the normal premium mentioned above.
The additional premium that the policy holder pays for Term Rider is very nominal and is benefitted only in the event of death.
In this case we would actually have paid in these 20 years (597177 + 29391) = 626568
So, the total benefit the nominee will receive:
(Sum Assured + Bonus till 6th year + Term Rider)
500000 + 140400 + 500000 = 1140,400
Disclaimer: The premium shown here is indicative but not exact. Actual premium may vary as per underwriting rules. However, the maturity calculation shown here is accurate per the current bonus rate.
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