LIC New Endowment Plan 714

Read on to know more about LIC Endowment plan in detail: 

LIC New Endowment Plan- An Overview

LIC New Endowment Plan 714 is a participating plan that offers the dual benefits of protection and savings. It comes with death and maturity payouts, which are paid as financial support to the family of the deceased policyholder or as a lump-sum amount at the time of policy maturity. Moreover, the new LIC Endowment Plan also helps in emergency scenarios by providing a loan facility. The plan can easily be purchased offline from LIC. 

The plan was previously sold as LIC Endowment Plan 914, which LIC has now withdrawn and relaunched as LIC New Endowment Plan 714.

Key Features of LIC New Endowment Plan

• This is a participating, non-linked Endowment Plan

• The plan offers savings and protection 

• Flexibility to

  • Choose the time for which protection is needed 

  • Choose for payment of the death benefit in installments

  • Choose the premium payment frequency as per your comfort

• LIC plan offers additional coverage as optional accidental death and disability benefit rider, which can be opted for at an additional premium along with the base coverage offered by the policy.

• The LIC New Endowment Plan 714 provides loan facilities to fulfil liquidity needs.

Eligibility Criteria of LIC New Endowment Plan 914

Benefits of the New Endowment Plan 714

The New Endowment Plan by Life Insurance Corporation of India offers a blend of financial protection and savings, helping you secure your family’s future while building long-term wealth. Here are the key benefits that make this plan a smart choice for your financial goals.

• Maturity Benefit:
  If the policyholder survives the entire tenure of the policy, then at the time of maturity, he/she will receive the basic sum assured amount along with accrued bonuses as a maturity benefit, and the policy's tenure will lapse.

• Death Benefit:
  If the insured person dies during the policy's tenure, the beneficiary receives the death benefit as the total sum assured on death along with the simple reversionary bonus or accrued bonus, and the policy's tenure lapses.
  Sum Assured on Death is defined as higher of:

  • The basic Sum Assured as chosen at the beginning of the policy

  • 7 times of annualized premium

  Subject to a minimum of 105% of the total premiums paid as of the date of death

• Death benefit in instalment or Settlement option:

  There are options to receive the death benefit in instalment instead of a lump sum. The maturity benefit can also be received in instalments using the Settlement option. For both cases here is the breakdown of the payout:

  Mode of Instalment payment	Minimum Instalment Amount (Rs)
  Monthly	5,000
  Quarterly	15,000
  Half-yearly	25,000
  Yearly	50,000

• Participation in Profit:
  LIC New Endowment Plan participates in the company's profits, and the policy accumulates Simple Reversionary Bonuses and a Final Additional Bonus, which are declared based on the company's experience. A simple reversionary bonus is offered to the insured in case of the death benefit or maturity benefit, provided the policy has completed the certain minimum years.

• Rider Benefit for Enhanced Protection:
  LIC New Endowment Plan offers four optional riders such as LIC's Accidental Death and Disability Benefit Rider, LIC’s Accident Benefit Rider, LIC’s New Term Assurance Rider, and LIC’s Premium Waiver Benefit Rider. These riders financially protect the policyholder and their family from life’s uncertainties such as death, disability and diseases

LIC New Endowment Premium 714 Sample Premium Illustration

LIC New Endowment Plan calculator helps the policyholder get the estimates of the premium payables and allow the policyholder to determine the maturity value of their plan.

Here is a sample illustration of annual premiums for the Basic Sum Assured of Rs. 2,00,000 using the LIC New Endowment Premium & Maturity Calculator

Note: You can easily calculate your premiums using the LIC premium and maturity calculator.

Riders Available in New Endowment Plan 714

You can get enhanced protection by adding the following available riders to the LIC New Endowment Plan 714 base policy.

• LIC’s Accidental Death and Disability Benefit Rider

  This rider can be added to an active policy if the premium paying term is atleast 5 years and the life assured is below 65 years. It offers coverage up to 70 years or the end of the policy term. In case of accidental death, a lump sum is paid. For accidental disability within 180 days, the benefit is paid in monthly instalments over 10 years, and future premiums are waived. For minors, it is available after 18 years on request. 

• LIC’s Accident Benefit Rider

  This rider works similarly and can be added at any point during an in-force policy, if the policyholder is under 65 and has at least 5 years left in the policy term. This only provides a lump sum payout if the policyholder dies due to an accident. It does not offer any payout in case of disabilities caused by the accident.

  Note: Only one of the Accidental Death and Disability Benefit Rider and the Accident Benefit Rider can be chosen.

• LIC’s New Term Assurance Rider

  This rider can only be selected at the start of the policy. The coverage under this rider will be available throughout the policy term. If chosen, an amount equivalent to the Term rider sum assured on death will be paid in case of the life assured’s death during the policy term. 

• LIC’s Premium Waiver Benefit Rider 

  This rider can be added to an active policy on the policy anniversary if at least five years of premiums remain. It can be chosen only if the life assured is a minor. If the proposer dies, future premiums are waived during the rider term. This rider can't be added if the proposer's age plus the rider term exceeds 70 years.

Policy Details of LIC New Endowment Plan 714

Here are the LIC policy details of the New Endowment Plan 714:

• Grace Period
  If the policyholder can't pay the premium on time, a grace period of 15 days is allowed for monthly payments and 30 days for yearly, half-yearly or quarterly premium payments . During this time, the policy stays active, and the policyholder remains covered. In case the premium is not paid before the last date of grace period, the policy lapses.

• Free Look Period
  If the policyholder is not satisfied with the terms and conditions of the policy, they may return it to the insurer within 30 days from the date of receiving the Policy Document, either in physical or electronic form, whichever is earlier, along with a written explanation of their objections. Upon receiving the request, the insurer will cancel the policy and refund the premium paid, after deducting applicable charges such as the proportionate risk premium (for the base policy and any riders), medical examination costs (including special reports, if any), and stamp duty charges.

• Surrender
  The policy can be surrendered after completing 1st year of the policy, provided the premium for one complete year has been paid. 

• Policy Termination

  The policy will automatically end when any of the following happens, whichever comes first:

  • Date when the lump sum death benefit or last death benefit instalment is paid.

  • Date when the surrender value is paid out.

  • On the maturity date, if the settlement option is not chosen.

  • When the final settlement instalment is paid.

  • If the loan interest is not paid on time.

  • If the policy is not revived within the revival period and hasn’t become paid-up.

  • When the free-look cancellation refund is paid.

  • If the policy is forfeited.

• Paid-Up Policy
  If less than one full year’s premium is paid and the next premium is missed, the policy will lapse after the grace period, and no benefits will be payable. However, if at least one full year’s premium is paid, and further premiums are not paid, the policy will continue as a paid-up policy for the remaining term.

• Rebates

  Mode	Rebate
  Yearly mode	2% of Tabular Premium
  Half-yearly mode	1% of Tabular premium
  Quarterly, Monthly mode & Salary Deduction	NIL
  High Sum Assured Rebate: Basic Sum Assured (B.S.A)	Rebate
  ` 2,00,000 to less than Rs. 5,00,000	Nil
  ` 5,00,000 to less than Rs. 10,00,000	2.5% of B.S.A.
  ` 10,00,000 and above	4.00% of B.S.A.

  Note: B.S.A - Basic Sum Assured 

• Policy Revival
  If the premium is not paid within the grace period, the policy will lapse. A lapsed policy can be revived within a period of five consecutive complete years from the date of the first unpaid premium, and before the policy's maturity date, whichever is earlier.

What is Not Covered In LIC New Endowment Plan?

Suicide If the life assured (whether sane or insane) dies by suicide within 12 months (1 year) from the date of risk commencement and the policy is in force, the nominee or beneficiary will be entitled to 80% of the total premiums paid till the death date. 

If the life assured (whether sane or insane) dies by suicide within 12 months (1 year) from the policy’s revival date, the amount payable will be the higher of 80% of the total premiums paid till the death date or the surrender value available on that day. In such cases, no other claims or benefits will be paid under the policy. 

How to Buy LIC Plans from Policybazaar?

Follow the steps below to buy LIC Plans from Policybazaar:

Step 1: Visit LIC. 

Step 2: Fill in the form with your name and contact number. Click on “View plans”.

Step 3: Enter your age, the city you live in, and your annual income.

Step 4: Once done, select the plan by choosing your desired investment amount, tenure and click on “Get Details”.

Step 5: Cross-check the details, the premium you need to pay, and customize the amount and tenure of your investment as you want. Proceed to make an online payment.

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