LIC New Endowment Premium & Returns Calculator
Model LIC's signature savings and protection plan under Plan 914. Calculate modal premiums, first-year vs renewal GST, high sum assured rebates, compounding simple reversionary bonuses, and tax-free maturity payouts.
Projected Maturity Benefit
₹9,55,000
- Years 1 to 20: Pay premiums of ₹24,271 (yearly) and accumulate reversionary bonuses.
- In Year 20: Policy matures. Receive the lumpsum ₹9,55,000 tax-free payout.
- Active Cover: Comprehensive life protection is active from Day 1 through Year 20.
The chart above visualizes your cumulative investment vs the accumulated bonus and death cover wealth growth.
LIC New Endowment Plan (Plan 914): Benefits & Mechanics
The **LIC New Endowment Plan (Plan 914)** is a traditional, non-linked, participating savings-cum-protection plan. As one of LIC’s oldest and most trusted wealth creation products, it is designed to provide standard guaranteed life cover alongside regular bonuses throughout the policy term. At maturity, the policyholder receives a tax-free lump sum consisting of the Basic Sum Assured plus all accrued bonuses, offering a solid safety net for life milestones like child education, marriage, or retirement planning.
Sum Assured Rebate Slabs: Premium Discount Mechanics
LIC rewards larger coverage commitments by offering **High Sum Assured Rebates**. These rebates represent a direct reduction in the annual premium rate per ₹1,000 of Sum Assured, immediately lowering your cost of coverage:
| Basic Sum Assured Slab | Premium Rebate (per ₹1,000 SA) | Effective Cost Reduction |
|---|---|---|
| ₹1,00,000 to ₹1,95,000 | ₹0.00 (Nil) | Standard rates apply |
| ₹2,00,000 to ₹4,95,000 | ₹1.50 Rebate per ₹1,000 SA | Upfront discount on base rate |
| ₹5,00,000 and Above | ₹2.00 Rebate per ₹1,000 SA | Maximum rate discount slab |
The Actuarial Bonus Compounding
As a participating policy, Plan 914 gains value through two types of bonuses declared by LIC annually based on corporate profits:
Simple Reversionary Bonus (SRB)
Declared annually per ₹1,000 of Sum Assured and added to the policy assets. It accumulates simply (non-compounding) to be paid at maturity or death:
Annual Bonus = (Sum Assured × Declared SRB Rate) / 1000Final Additional Bonus (FAB)
A one-time terminal bonus paid only upon policy completion (maturity or death claim) provided the policy term is 15 years or more:
FAB Amount = (Sum Assured × Declared FAB Rate) / 1000Sovereign Tax Shield: Sections 80C & 10(10D)
One of the main highlights of Plan 914 is its triple tax exemption status, secured under Indian Income Tax regulations:
Tax-Free Maturity Payouts
Under **Section 10(10D)** of the Income Tax Act, the final maturity corpus—including all accrued reversionary bonuses and final additional bonuses—remains **100% tax-free**, provided the Sum Assured is at least 10 times the annual premium.
Upfront Premium Deductions
All periodic premium installments paid towards Plan 914 qualify for tax deductions under **Section 80C** of the Income Tax Act up to the maximum annual limit of ₹1.5 Lakhs.
Guaranteed Surrender Value & Policy Loans
Plan 914 provides financial flexibility through standard liquidity channels once equity accumulates:
- Guaranteed Surrender Value (GSV): Policyholders can voluntarily surrender the policy after paying premiums for **2 consecutive years**. Payout equals a percentage of premiums paid plus cash value of vested bonuses.
- Instant Policy Loan: You can secure a loan against the policy surrender value after completing 2 policy years, capped up to **90% of the surrender value** (or 85% for paid-up policies). Interest rate is fixed at 9.5% p.a. compounded half-yearly.
Frequently Asked Questions (FAQs)
What is the minimum and maximum entry age for LIC Plan 914?
What is the minimum Sum Assured and Policy Term allowed?
Is there a Rider Benefit available with Plan 914?
Don't Just Take Our Word For It
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"Excellent calculator! It helped me understand the premium structure before meeting with an LIC agent. The estimates were quite close to the actual premium I was quoted. Very user-friendly interface."
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