LIC New Endowment Plan (914)

LIC’s New Endowment Plan (914) Review

LIC’s New Endowment Plan is a participating non-linked plan which offers an attractive combination of protection and saving features. The policy can be availed for a duration of 12 to 35 years. The policy can be taken for anyone between 8 to 55 years of age and can be continued till 75 years of age.
In this plan, a premium needs to be paid for the entire policy tenure. The Sum Assured along with the vested Simple Reversionary Bonus + Final Addition Bonus would be paid to the Life Insured on survival till the end of the Policy Tenure as Maturity Benefit.

Table Number914
Product TypeEndowment
no-claim-bonus-overview icon
Guaranteed Bonus
tax-benefit-overview icon
Tax Benefits
ambulance-cover-overview icon
Accidental Death

Compare this plan with other Investment Plans

LIC New Endowment Plan (914) - Key Features

Guaranteed Bonus
earn-and-burn icon

  • Plan with guaranteed returns and bonus
  • Simple Reversionary Bonus is payable on maturity or earlier death

Large Sum Assured Rebate is available
unlimited-automatic-recharge icon

Tax benefits of premiums paid and maturity amounts
tax-benefit icon

LIC’s Accidental Death and Disability Benefit Rider can be taken
ambulance-cover icon

LIC New Endowment Plan (914) - Benefits

Death Benefit

In case of death of the Life Insured within the Policy Tenure, the Nominee would be paid the “Sum Assured on Death” along with vested Bonuses as De...

Maturity Benefit

On survival till the end of the Policy Tenure, the policyholder will Sum Assured + accrued Reversionary Bonus + Final Addition Bonus (if any) as Ma...

Income Tax Benefit

Life Insurance premiums paid up to Rs. 1,50,000 is allowed as a deduction from the taxable income each year under section 80C. The Maturity Benefit...

Additional Features and Benefits of LIC New Endowment Plan (914)

There are 5 Additional Riders available with this plan:

  1. Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
  2. Accident Benefit Rider (UIN:512B203V03)
  3. New Term Assurance Rider (UIN: 512B210V01)
  4. New Critical Illness Benefit Rider (UIN: 512A212V01)
  5. Premium Waiver Benefit Rider (UIN: 512B204V03)

Note - Each of the above Rider Sum Assured cannot exceed the Basic Sum Assured under the Base plan.

There are 2 types of Bonuses available in this plan:

  1. Simple Reversionary Bonus is declared per thousand Sum Assured annually at the end of each financial year.  Once declared, they form part of the guaranteed benefits of the plan. Bonuses will be added during the selected term or till death if it occurs earlier. Simple Reversionary Bonus accrued during the premium paying term and is paid at the end of the premium paying term or on earlier death along with the final additional bonus if any. No bonus is paid on death after the premium paying term.
  2. Final Addition Bonus may also be payable provided the policy has run for a certain minimum period.

Let us understand with an example:

Ramesh has purchased a LIC New Endowment Plan for 25 years and for a Sum Assured of Rs 10 lacs. Now, if the Simple Reversionary Bonus for a particular year is Rs 30, then the Bonus that accrues for Ramesh is:

Bonus = 30/1,000 x Sum Assured = 30/1,000 x 10,00,000 = 30,000 for that year.

If the Bonus is assumed to be the same every year for the entire policy tenure of 25 years, then his Simple Reversionary Bonus = 30,000 x 25 = 7,50,000

The Final Addition Bonus does not get multiplied by the number of years. Thus, if Final Addition Bonus is Rs.200 per thousand Sum Assured, then Final Additional Bonus would be calculated as Rs 200/1,000 x Rs.10,00,000 = Rs.2,00,000

Total Bonus = Simple Reversionary Bonus + Final Addition Bonus

Total Bonus = Rs.7,50,000 + Rs.2,00,000 = Rs 9,50,000

How does LIC's New Endowment Plan (914) work?

The policyholder chooses the Sum Assured and the Term of the plan when buying the policy. Based on the age of the insured, the sum assured and the policy term selected, the premium is determined. The policyholder is required to pay premiums for the entire duration of the policy term.

If the insured survives till the end of the policy term and all premiums have been paid, a Maturity Benefit would be paid to the policyholder. Maturity benefit would be equal to the Sum Assured + Bonus Amounts which have been received throughout the policy term + any Final Addition Bonus if declared.

However, if the insured dies during the policy term, then Death Benefit would be payable to the nominee which would be as follows: the Sum Assured on Death + Vested Bonus till the date of death + any Final Addition Bonus.


We will explain the plan with the help of an example.

Example –
Raj, aged 35 years, buys LIC’s New Endowment Plan.
Sum Assured = Rs. 5 lakhs
Policy term = 25 years.

Annual Premium for the 1st year - Rs. 19,785 including 4.5% GST
Annual Premium 2nd year onwards -  Rs. 19,359 including 2.25% GST

The premium would be payable for the entire duration of 25 years.

Other Assumptions:

Simple Reversionary Bonus declared every year = Rs. 45 per 1000 Sum Assured. That means a bonus of 45 x (5,00,000/1,000) = Rs. 22,500 every year.

Note - The above bonus rate is declared by LIC for the year 2020-21 and there is no guarantee that this same bonus rate will be applicable – it could be higher or lower every year.

Final Addition Bonus* = Rs. 450 per 1000 Sum Assured. That means a Final Addition Bonus of 450 x (5,00,000/1,000) = Rs. 2,25,000 when the policy ends.

*It varies according to the Sum Assured and the Term of your policy

Scenario 1 – Raj survives till the end of the policy tenure,

In this case, the Sum Assured of Rs. 5 lakhs would be paid along with the simple reversionary bonuses and any Final Bonus declared by the company.

He gets: Sum Assured + Bonuses declared for 25 years + Final Addition Bonus if declared. That means he gets the Maturity Amount of Rs. 5,00,000 + (Rs. 22,500 x 25) + Rs. 2,25,000 = Rs. 12,87,500

Scenario 2 – Raj dies in the 17th year of the plan.
Here, Raj’s nominee would get the Sum Assured and the vested bonus, and any Final Bonus.

His Nominee gets: Death Benefits Payable = Rs. 5,00,000 + Rs. (22,500 x 17) + Rs. 2,25,000 = Rs. 11,07,500

Sample illustration of premium of LIC New Endowment Plan (914)

Illustration across Age for the same Sum Assured of Rs 1 Lakh:
The below illustration is for a healthy male (non-tobacco user) opting for a sum assured = Rs.1,00,000 and policy term = 25 years respectively.

LIC New Endowment Plan (914) Premium Rates

Eligibility conditions for LIC New Endowment Plan (914)

  Minimum Maximum
Sum Assured (in Rs.) 1,00,000 (multiples of 5,000) No-Limit
Policy Term (in years) 12 35
Premium Payment Term (in years) Equal to Policy Term
Entry Age of Life Insured (in years) 8 55
Age at Maturity(in years) - 75
Payment modes Yearly, Half Yearly, Quarterly or Monthly

LIC New Endowment Plan (914) - FAQs

angle right iconYou stop paying the premium

If the premiums are not paid within Grace Period, the policy lapses, and all benefits cease. However, if at least 2 years’ premiums have been paid, the policy acquires a Paid-up Value for a Reduced Sum Assured but the policy would be eligible for any future regular additions.
Reduced Sum Assured = Basic Sum Assured *(Number of Premiums Paid / Total Number of Premiums Payable)
The policy can however be revived within 5 consecutive years from the date of the first unpaid premium.

angle right iconYou want to surrender the policy

The policy can be surrendered only after it accrues Cash Value after at least 2 years’ premiums have been paid. This percentage will depend on the policy term and policy year in which the policy is surrendered and specified as per the table mentioned.

angle right iconYou want a loan against your policy

A loan can be availed under the policy provided the policy has acquired a surrender value and is subject to the terms and conditions.

How to make a claim in LIC New Endowment Plan (914)

How to make a maturity or surrender claim?
A maturity claim is easy to make. The policyholder would have to fill and sign the claim discharge form and submit it to the insurer for availing of the maturity benefit along with the original policy document, NEFT Mandate Form, and age proof if age was not admitted earlier.
In case of surrender, the policyholder should inform the company in writing to avail the surrender value.

The maturity or surrender amount can be either claimed in a lump sum or in installments of 5, 10, or 15 years. For this, you just need to inform the company 3 months prior to the maturity date.

How to make a death claim?
In case of a death claim, the nominee should fill up the claim discharge form and submit it to the company along with -

  • Original policy document
  • NEFT Mandate Form for the direct settlement of claim into the nominee’s bank account
  • Proof of Title which is the nominee’s Identity Proof
  • Proof of Death - death certificate
  • Medical treatments availed prior to death
  • Proof of age if age was not admitted in the policy
  • Police inquest report, newspaper cuttings reporting the accident, copy of driving license for road accidents, post-mortem report, etc. might be required in case of accidental or unnatural death.