The New Endowment Plan from LIC (UIN: 512N277V03) is a participating, non-linked endowment assurance plan that blends savings and protection. In addition to guaranteeing a lump sum payout at maturity if you live out the policy term, it gives your family financial security in the unfortunate event of your death.
It is one of the most well-liked options for Indian families seeking long-term financial stability with assured returns and bonuses because of these two advantages.
LIC New Endowment (Plan 714)
Estimate premium and potential benefits for LIC’s New Endowment Plan 714.
Key Features of the New Endowment Plan
- Life Insurance + Maturity Benefit: Safeguard your loved ones and accumulate wealth.
- Guaranteed Sum Assured + Bonuses: Basic Reversionary Bonuses + Any Last Extra Bonus.
- Monthly, quarterly, half-yearly, or annual premium payments are all flexible options.
- After a year of coverage and at least one full premium paid, the loan facility becomes available.
- Tax benefits include maturity/death proceeds under Section 10(10D) and premiums paid that are eligible under Section 80C.
- Option for Settlement: Get Death/Maturity benefits over a period of 5, 10, or 15 years in installments.
Benefits at a Glance
1. Death Benefit
If the Life Assured dies before maturity (while policy is active):
- Sum Assured on Death (higher of Basic Sum Assured or 7 times annualized premium)
- + Bonuses (Simple Reversionary + Final Additional Bonus)
- Minimum Death Benefit = 105% of total premiums paid till date of death.
2. Maturity Benefit
If the Life Assured survives policy term:
- Sum Assured on Maturity = Basic Sum Assured
- + Bonuses (Simple Reversionary + Final Additional Bonus, if any).
3. Surrender Value
- Guaranteed surrender value following two full years of premium payments.
- After a year, if the full year’s premium has been paid, a special surrender value will be available.
4. Loan Facility
- Loans available after 1 policy year with conditions.
Why Indians Prefer LIC’s New Endowment Plan
- With more than 29 crore policies in effect, Trust of LIC is the top life insurer in India.
- Guaranteed + Bonus Earnings: This provides savings growth in contrast to pure term plans.
- Financial discipline: Covers risks and promotes long-term savings.
- Family protection is the safety of dependents in the event of unanticipated circumstances.
Real-World Example
Case Study – Delhi:
Ravi Kumar (35 years old, salaried professional) opted for a 20-year LIC New Endowment Plan with a Basic Sum Assured of ₹10 lakhs.
- Annual Premium: ₹50,000 approx.
- On unfortunate demise in the 10th year, his family would receive ₹10 lakh + accrued bonuses (approx. ₹3.5 lakh).
- If he survives full term, maturity payout could reach ₹15–18 lakhs (depending on bonus rates).
This gives his family financial protection + savings returns at the same time.
Expert Opinions
“Endowment plans like LIC’s New Endowment Plan are perfect for middle-class Indians who want both insurance and savings. The guaranteed maturity benefit plus bonuses provide stable returns with life protection.”
— Ajay Sharma, Financial Planner, Mumbai
“For long-term disciplined savers, this plan works as a dual-purpose product — life cover and wealth creation. It’s safer compared to market-linked products and suits risk-averse investors.”
— Ritu Mehra, Insurance Analyst
Frequently Asked Questions (FAQs)
Minimum entry age is 8 years, maximum is 55 years (depending on policy term).
Policy term ranges from 12 years to 35 years.
A grace period of 30 days (for yearly, half-yearly, quarterly) and 15 days (monthly) is allowed. If not paid, the policy may lapse but can be revived.
Yes, loans are available after 1 year, subject to conditions.
You can surrender after at least 2 full years’ premiums are paid, and you will get the higher of Guaranteed or Special Surrender Value.
Yes, under Section 80C (premiums) and 10(10D) (benefits).
Final Takeaway
Families and individuals seeking a dependable, risk-free savings option that offers both wealth accumulation and insurance coverage should consider the LIC New Endowment Plan. This plan helps Indians secure their future while developing financial discipline, and it is supported by LIC’s unparalleled trust and nationwide reach.
Secure your family today — Apply for LIC’s New Endowment Plan!