The LIC New Endowment Plus Plan 735 is a popular insurance-cum-investment policy offered by Life Insurance Corporation of India (LIC). It is a unit-linked insurance plan (ULIP) that combines the benefit of protection and long-term savings under a single plan. This plan is designed for individuals who want to secure their financial future while generating wealth through market-linked investments.

Under this plan, premiums paid by the policyholder are invested in various fund options that can grow over time, depending on market performance. You also get life insurance coverage throughout the policy term, ensuring protection for your loved ones.

What is a LIC New Endowment Plus Plan 735 Calculator?

An LIC New Endowment Plus Plan 735 calculator is an online tool that helps you estimate your policy’s potential returns, premium amount, and maturity benefits based on inputs like sum assured, policy term, premium payment term, and age. This calculator saves time and effort compared to manual calculations and provides a clear projection of financial outcomes.

Using this calculator, you can make informed decisions about whether this plan aligns with your financial goals and budget.

Key Features of LIC New Endowment Plus Plan 735

• Unit Linked Plan: The plan invests your premiums in a choice of four different funds, allowing you to capitalize on market growth opportunities.
• Flexible Premium Payment: You can pay premiums monthly, quarterly, half-yearly, or yearly based on your convenience.
• Policy Term: You can choose a policy term between 10 to 20 years.
• Sum Assured: The basic sum assured is typically 10 times the annualized premium, subject to certain conditions.
• Maturity Benefit: At the end of the policy term, you receive the fund value accumulated from your investments.
• Death Benefit: If the policyholder dies during the policy term, nominees receive the higher of the sum assured or the fund value.
• Partial Withdrawals: Allowed only after completion of five years, adding liquidity to your investment.
• No Bonus: Being a non-participating product, it does not offer any bonuses during the policy term.
• Charges: Includes premium allocation charges, mortality charges, policy administration charges, and fund management fees.
• Tax Benefits: Premiums paid and maturity proceeds are eligible for tax benefits under applicable income tax laws.

How to Use the LIC New Endowment Plus Plan 735 Calculator?

Using the LIC New Endowment Plus Plan 735 calculator is straightforward. Here’s a simple step-by-step guide:

1. Enter Your Age: Provide your current age as it impacts premium calculation and eligibility.
2. Choose Policy Term: Select the duration for which you want the policy to stay active (between 10 to 20 years).
3. Select Premium Payment Term: Choose how long you want to pay premiums (it can be equal to or less than the policy term).
4. Enter Sum Assured or Premium: You can either enter the desired sum assured or the premium amount you wish to pay.
5. Choose Premium Mode: Select your premium payment frequency (monthly, quarterly, etc.).
6. Calculate: Once all inputs are provided, click the ‘Calculate’ button to view your premium details, projected fund value, maturity amount, and death benefits.

The calculator will show how your investment could grow, including approximate maturity value based on assumed rates of return.

Benefits of Using the LIC New Endowment Plus Plan 735 Calculator

• Quick Decision Making: Get instant maturity and premium estimates to decide if the plan fits your budget.
• Financial Planning: Helps plan your investments and insurance coverage effectively.
• Transparency: Understand the potential returns before committing to the policy.
• Scenario Analysis: Test different premium amounts or terms to see the impact on returns.
• Comparison Tool: Compare with other LIC plans or investment options to choose wisely.

Understanding the Maturity Benefit and Death Benefit

Maturity Benefit

At the end of the policy term, the fund value accumulated through your investments will be paid to you. This amount depends on the performance of the chosen investment fund and market conditions. Since it’s a ULIP, fund value can go up or down based on the NAV (Net Asset Value) of the units held.

Death Benefit

If the policyholder dies during the policy term, the nominee receives the higher of:

• Sum Assured (generally 10 times annualized premium), or
• Fund value accumulated till the date of death.
  This ensures your family is financially protected even if unforeseen events occur.

Important Charges to Know

• Premium Allocation Charge: Deducted initially from your premium before investing in the selected fund.
• Policy Administration Charge: For policy maintenance and services.
• Mortality Charge: Charged based on the sum assured to cover the risk of death.
• Fund Management Charges: Deducted annually from the fund value to manage investments.
  Understanding these charges helps set realistic expectations about returns.

Fund Options under LIC New Endowment Plus Plan 735

You can choose from different investment funds based on your risk appetite:

• Growth Fund: Focuses on equity investments, higher risk, and potentially higher returns.
• Balanced Fund: Mix of equity and debt for moderate risk and steady growth.
• Debt Fund: Mainly invests in fixed-income securities, lower risk but stable returns.
• Money Market Fund: Safe and liquid, suitable for short-term investments.

You can switch funds during the policy term to rebalance your portfolio according to market conditions or your needs.

Eligibility Criteria for LIC New Endowment Plus Plan 735

• Minimum Age at Entry: 7 years (oldest birthday)
• Maximum Age at Entry: 60 years (nearest birthday)
• Minimum Maturity Age: 18 years (completed)
• Maximum Maturity Age: 70 years (nearest birthday)

Tax Benefits Associated with the Plan

Premiums paid are eligible for tax deduction under Section 80C of the Income Tax Act, subject to the prevailing limits. The maturity proceeds, including death benefits, are also eligible for tax exemption under Section 10(10D) of the Income Tax Act, subject to certain conditions and tax laws.

Why Choose LIC New Endowment Plus Plan 735?

• Reliable insurer: LIC is India’s largest and most trusted life insurer.
• Combination of insurance and investment saves the need for separate policies.
• Flexible, with multiple premium payment modes and fund options.
• Partial withdrawal facility adds liquidity post 5 years.
• Offers financial protection for your family against uncertain events.
• Potential for wealth creation through market-linked funds.

Tips for Maximizing Benefits from LIC New Endowment Plus Plan 735

• Choose the right fund based on risk tolerance and financial goals.
• Pay premiums regularly to build a higher fund value.
• Avoid surrendering the policy before 5 years to prevent loss of benefits.
• Use the online calculator to plan premium and tenure realistically.
• Review the policy and fund performance periodically.

FAQs about LIC New Endowment Plus Plan 735 Calculator

Conclusion

The LIC New Endowment Plus Plan 735 is a well-rounded ULIP plan that offers the dual advantage of life insurance and wealth accumulation. Using the LIC New Endowment Plus Plan 735 calculator can significantly help in understanding your premium obligations and expected maturity benefits, ensuring informed financial planning. This plan is suitable for individuals looking for flexible investment options with insurance coverage over a long term.