LIC New Endowment Plan 914 combines security, savings, and financial support, making it ideal for regular savers with life insurance. The policy includes death and maturity benefits, additional bonuses, a loan facility, and an optional rider for enhanced coverage. Experts endorse this popular plan for its attractive perks.
The LIC endowment plan 914 is a highly recommended policy by LIC India, offering numerous customer benefits. It guarantees returns and bonuses with a flexible policy term of 12-35 years. The plan is available for individuals aged 8-55, extendable up to 75 years. Throughout the policy term, premiums are paid on a regular schedule. On survival, the insured receives Sum Assured plus vested bonuses as a maturity benefit. This popular plan is favored by experts and customers alike, providing comprehensive death and maturity benefits. Let’s delve into the LIC 914 plan details.
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LIC New Endowment Plan 914 Key Features
- The New Endowment Plan 914 is a participating traditional plan offering complete coverage throughout the policy term.
- Premiums are paid for the entire tenure, ensuring uninterrupted benefits.
- Survivors receive policy benefits upon reaching the end of the policy tenure.
- In the unfortunate event of the insured person’s death, the nominee receives death benefits, leading to policy termination.
- Additional coverage can be obtained by extending the plan with extra premium payments.
- The plan provides simple reversionary bonuses upon maturity or death, guaranteeing returns.
- Significant sum assured rebates are available, enhancing the plan’s attractiveness.
- Assured returns and bonuses are assured under this plan.
- LIC’s Accidental Death and Disability Benefit Rider can be availed for additional protection.
LIC New Endowment Plan 914 Benefits
The LIC New Endowment Plan offers attractive benefits, including assured death, maturity, and income tax benefits. Let’s explore these benefits in detail.
1. Death Benefit
If the insured person passes away before the maturity date, the nominee receives the Death Benefit, which includes the “Sum Assured on Death” and vested bonuses. The LIC New Endowment Plan 914 is then terminated. The “Sum Assured on Death” is determined as the higher of the Basic Sum Assured or 10 times the Annualized Premium, with a minimum of 105% of all premiums paid.
2. Maturity Benefit
Upon surviving the policy term, the insured person receives the Maturity Benefit, which includes the Sum Assured, accrued Reversionary Bonus, and Final Addition Bonus (if applicable). The LIC endowment plan is then terminated.
3. Income Tax Benefits
The plan provides tax benefits, allowing deductions up to Rs. 1, 50,000 on life insurance premiums under Section 80(C) of the Income Tax Act. The maturity benefit is tax-free under Section 10(D), subject to terms and conditions.
4. Loan Benefit
The policyholder can avail of a loan based on the terms, conditions, and surrender value of the LIC plan 914.
LIC New Endowment Plan 914 Eligibility Criteria
|Sum Assured||1,00,000, in multiples of 5,000||No Limit|
|Policy Term||12 years||35 years|
|Premium Payment Term||Equal to Policy Term||Equal to Policy Term|
|Entry Age of Life Insured||8 years||55 years|
|Age at Maturity||–||75 years|
|Monthly Premium||For Ages 12 to 49 years: Rs.250or –||Rs. 10,000or –|
|Payment modes||All four: Yearly, Half -Yearly, Quarterly or Monthly||All four: Yearly, Half – Yearly, Quarterly or Monthly|
LIC New Endowment Plan 914 Documents Required
- The policyholder must submit a duly filled application form or proposal form.
- The medical history of the person seeking the policy should be attached.
- KYC documents, including valid address proof, are required.
- Depending on the age and sum assured, the company may request a medical examination.
Product Specification LIC New Endowment Plan 914
|Age of Entry||55 years||8 years|
|Maturity Age||75 years||–|
|Policy Term||35 years||12 years|
|Premium Paying Term||Equivalent to the Policy Term||Equivalent to the Policy Term|
|Premium Paying Frequency||All four: Monthly or quarterly or half yearly or annually||Monthly or quarterly or half yearly or annually|
|Sum Assured||No set limit||Rs. 1 Lakh|
Additional Bonuses Under LIC New Endowment Plan 914
The LIC New Endowment Plan 914 provides additional benefits in the form of riders, such as the Accidental Death and Disability Benefit Rider. Additionally, the policy offers bonus benefits.
Simple Revisionary Bonus
The endowment plan 914 provides Simple Reversionary Bonuses, declared annually based on per thousand Sum Assured. These bonuses are guaranteed benefits and are paid either at the end of the term or on death, along with other additional benefits.
A Final Bonus
The Final Addition Bonus is paid if the policy has been active for a specified minimum period according to the terms and conditions.
A Simple Example
Let’s consider the case of Kanchan, who decided to invest in for 25 years with a Sum Assured of Rs 10 lakhs. Under this policy, the Simple Reversionary Bonus for a particular financial year is Rs 30 per thousand of the Sum Assure.
Based on this bonus rate, Kanchan will accrue a bonus of Rs 30,000 for that specific year. Assuming that the bonus remains consistent throughout the policy tenure of 25 years, the total bonus accumulated by Kanchan will amount to Rs 7, 50,000 (Rs 30,000 multiplied by 25 years).
This demonstrates how the Simple Reversionary Bonus provides an additional benefit to policyholders like Kanchan, enhancing the overall value of the LIC New Endowment Plan.
Unlike the Simple Reversionary Bonus, the Final Bonus is not effect by the policy duration. For instance, if the rate is Rs. 200 per thousand, the Final Bonus would amount to Rs. 2 00,000 for a Sum Assured of Rs. 10 00,000.
The Total Bonus is the sum of the Simple Reversionary Bonus and the Final Addition Bonus, amounting to Rs. 9, 50,000.
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The Optional Benefit Under LIC New Endowment Plan 914
LIC’s Accidental Death and Disability Benefit Rider added to the plan by paying an additional premium. In case of accidental death, the Accident Benefit Sum Assured is paid along with the death benefit. In the event of accidental permanent disability, monthly installments equal to the Accident Benefit Sum Assured are paid for 10 years, and future premiums are waived.
Exclusions Under LIC New Endowment Plan 914
If the insured person commits suicide within 12 months of policy commencement, the nominee will receive 80% of the premiums paid. In the case of suicide within 12 months of policy revival, 80% of the premium paid or acquired surrender value, whichever is higher, is paid.
The LIC endowment plan 914 stands out as one of the best policies offered by LIC India, providing many advantages to policyholders. This non-linked life insurance plan offers comprehensive coverage and financial security With guaranteed returns, bonus options, and flexible policy terms.
The LIC plan 914 not only ensures protection in the event of the insured person’s death but also provides substantial benefits upon survival till the maturity date. The LIC Endowment Plan also offers tax benefits under the Income Tax Act, further enhancing its appeal. With its attractive features and widespread options, this is prudent for individuals seeking a reliable and rewarding insurance solution.
LIC New Endowment Plan 914 – FAQs
What is the LIC New Endowment Plan 914?
Ans. The LIC New Endowment Plan 914 is a traditional participating policy offered by LIC India, providing guaranteed returns and bonus options to policyholders.
What are the key benefits of the LIC New Endowment Plan 914?
Ans. The plan offers death benefits, maturity benefits, and income tax benefits. It also provides additional coverage through riders and guarantees assured returns and bonuses.
Can I customize the policy term and coverage amount?
Ans. Yes, the LIC New Endowment Plan 914 offers flexibility in choosing the policy term, ranging from 12 to 35 years. You can also select the coverage amount based on your financial needs.
Are there any tax benefits associated with the LIC New Endowment Plan 914?
Ans. Yes, the premiums paid towards the policy are eligible for deduction from taxable income under Section 80(C) of the Income Tax Act. The maturity benefit is tax-free under Section 10(D), subject to fulfilling the terms and conditions.
Can I avail of a loan against my LIC New Endowment Plan 914?
Ans. Yes, you can avail of a loan against your policy provided it has acquired a surrender value and meets the terms and conditions set by LIC. The loan amount will depend on the surrender value and other factors.