The LIC New Endowment Plan 814 is a popular life insurance policy offered by the Life Insurance Corporation of India (LIC). This plan is designed to provide both insurance coverage and a savings component, making it a non-linked, participating, and with-profits insurance policy.

LIC New Endowment Plan 814

The plan is highly regarded because it gives financial protection to the family in the event of the policyholder’s unfortunate death and also helps the policyholder accumulate a lump sum amount for future needs, such as a child’s education or retirement, through disciplined savings.

Features and Benefits

The New Endowment Plan 814 comes loaded with the following salient features:

• A blend of life insurance and long-term savings.
• Guaranteed sum assured on maturity or death.
• Eligibility to participate in the profits of LIC through bonuses and possible final addition bonuses.
• Options to add riders like accidental death, disability, and critical illness for enhanced coverage.
• Loan facility after three years of premium payments.
• Offers rebates for large sums assured and premium payment frequency.
• Tax benefits under Sections 80C and 10(10D) of the Income Tax Act.

These features make the plan flexible and user-centric, designed to cater to both protection and savings needs.

How the Plan Works

When an individual opts for the plan, they select a policy term (between 12 and 35 years) and a sum assured (minimum ₹1,00,000, no upper limit). The policyholder pays regular premiums throughout the policy term. If the policyholder survives till the end of the term, the maturity value is paid out. In case of untimely death during the term, the nominee receives the sum assured plus bonuses as a death benefit.

Understanding the Need for a Calculator

Insurance products like the LIC New Endowment Plan can have complex benefits, including various bonuses and options. Manually calculating the premium, accumulated bonuses, and final maturity value for varying terms, ages, and sums assured is not always straightforward.

A dedicated LIC New Endowment Plan 814 Calculator offers the following:

• Instant computation of premium and maturity value for personalized parameters.
• Year-wise estimates of death claims and accrued bonuses.
• Guidance for better planning and investment.
• Reduces the risk of misunderstanding financial commitments or benefits.

How the LIC New Endowment Plan 814 Works

The calculator is an interactive online tool. It asks for basic details like current age, policy term, and sum assured, and then computes:

• Estimated annual premium.
• Total maturity value (sum assured plus bonuses).
• Year-wise or overall sum assured on death.
• Additional values like the Final Addition Bonus (if applicable).

Step-by-Step Guide to Using the Calculator

Using the calculator is extremely simple. Here’s a step-by-step outline to help anyone new to insurance calculate expected benefits:

1. Enter the Current Age: The age at which the policyholder is taking the policy (must be between 8 and 55 years, inclusive).
2. Choose Policy Term: Select between 12 and 35 years, depending on when the maturity benefits are desired.
3. Select Sum Assured: This is the guaranteed amount received at maturity or paid to nominees in case of death. The minimum is ₹1,00,000 and must be in multiples of ₹5,000.
4. Fill Additional Options: Choose extras like an accidental death rider or disability rider, if needed.
5. Click Calculate: The tool displays the annual premium, total estimated maturity value, total estimated bonus, and other relevant details.
6. Review Results: Check the displayed premium payment, maturity amount, and death cover. Adjust any parameters as desired to compare results.

For official calculators and more information, exploring the LIC India official website is recommended, as well as trusted financial portals for calculators.

Sample Calculation with Explanations

Let’s use a real-world sample to make things clearer:

• Age: 30 years
• Policy Term: 20 years
• Sum Assured: ₹5,00,000

Suppose:

• Annual premium (excluding riders): ₹21,000 (approximate for illustration)
• Accrued Bonus: ₹5,30,000 (estimated based on historical rates over 20 years)
• Final Addition Bonus: ₹90,000 (if applicable)

Estimated Maturity Value = Sum Assured + Accrued Bonus + Final Addition Bonus
That is, ₹5,00,000 + ₹5,30,000 + ₹90,000 = ₹11,20,000 (approximate)

Each person’s actual results may vary depending on policy options, any selected riders, bonus rates as declared by LIC, and premium payment mode.

Factors Affecting Maturity Value

Several factors influence the maturity and benefit values:

• Entry age at the time of policy purchase.
• Length (term) of the policy.
• Basic sum assured amount.
• Bonus rates declared by LIC (these may change annually).
• Additional riders and their cost.
• Chosen mode of premium (yearly, half-yearly, quarterly, or monthly).

Bonus and Final Addition Bonus Explained

What is a Bonus?

LIC, as India’s largest insurer, shares its profits with policyholders through periodic bonus declarations. Two bonuses matter in Endowment Plan 814:

1. Reversionary Bonus: Declared typically every year and added to the policy for each year it is in force.
2. Final Addition Bonus: This is a one-time bonus declared in the year the policy matures or on death and is subject to company performance.

Both bonuses significantly increase the maturity and death benefit amounts but are not guaranteed and depend on LIC’s investment performance each year.

Death Benefit: What Nominees Receive

If the policyholder dies during the policy term, the beneficiaries (nominees) receive:

• Sum Assured on Death (the higher of 10 times the annual premium or the basic sum assured).
• Accrued bonuses till the date of death.
• Final Addition Bonus (if any).

This combination is very helpful to family members, providing both insurance coverage and a sizable payout.

Key Eligibility Conditions and Parameters

Eligibility Table:

Parameter	Minimum	Maximum
Age at Entry	8 years	55 years
Policy Term	12 years	35 years
Basic Sum Assured	₹1,00,000	No Limit
Premium Paying Mode	Yearly/Half-Yearly/Quarterly/Monthly (ECS Only)	–

Additional Notes:

• Rebates are available for higher sums assured and on yearly/half-yearly payment mode.
• Riders may have additional eligibility requirements.

Tax Benefits of LIC New Endowment Plan 814

The plan is tax-efficient as

• Premiums paid are eligible for deduction up to ₹1.5 lakh under Section 80C.
• Maturity proceeds are tax-free under Section 10(10D) if certain conditions are met (like the sum assured being at least 10 times the annual premium).

Advantages of Using the LIC 814 Calculator

Key Benefits:

• Immediate, personalized projection of premium amounts and maturity totals.
• Helps compare results for different policy terms, sums assured, and additional options.
• Clears doubts about returns and death cover at any point of policy life.
• Ensures better planning, especially for major milestones like children’s future or retirement.
• Reduces errors in manual calculations, bringing transparency and clarity in financial planning.

Common Questions (FAQs)

Final Thoughts

The LIC New Endowment Plan 814 is a classic, all-purpose plan that helps individuals and families to combine the security of insurance with systematic savings for the future. A well-designed calculator is an essential companion, simplifying the entire process and making complex projections a breeze. Exploring the plan with such tools enables anyone to make better, informed, and confident decisions for their financial journey.