The Ultimate Guide to LIC’s New Endowment Plan (Plan 714)
In today’s uncertain economic landscape, finding a financial instrument that offers both guaranteed protection and disciplined savings is the cornerstone of sound Financial Planning. For the residents of Bhadra and surrounding areas, securing the future of their loved ones is a top priority. Whether you are planning for your child's higher education, your daughter's marriage, or your own peaceful retirement, LIC’s New Endowment Plan (UIN: 512N277V03) – Plan 714 emerges as one of the most trusted and reliable solutions available in the Indian insurance market.
As the leading Authorized LIC Agent and Insurance Advisor in Bhadra, Ashuram Insurance Expert brings you this highly detailed, comprehensive guide. We will explore every single feature, benefit, eligibility criterion, and hidden advantage of Plan 714, empowering you to make an informed and secure investment decision.
1. What is LIC’s New Endowment Plan (Plan 714)?
LIC’s New Endowment Plan is a participating (Par), non-linked, life, individual, savings plan. Let us break down what this means for you as an investor:
- Participating (Par): Your policy participates in the profits of the Life Insurance Corporation of India. This means you are entitled to receive a share of LIC's surplus in the form of Simple Reversionary Bonuses and Final Additional Bonuses.
- Non-Linked: Unlike ULIPs (Unit Linked Insurance Plans) or mutual funds, this plan is not linked to the volatile stock market. Your hard-earned money remains 100% secure from market crashes.
- Endowment Plan: It is fundamentally designed to provide an attractive combination of protection and savings. It guarantees financial support for your family in case of your unfortunate demise any time before maturity, while also providing a massive lump sum amount at the time of maturity if you survive the policy term.
2. Key Features and Advantages at a Glance
Why do thousands of families consider this the Best LIC Policy in India? Here are the primary reasons:
- Dual Benefit: It seamlessly merges life cover with wealth creation.
- Unmatched Flexibility: Complete freedom to choose the premium payment frequency (Yearly, Half-Yearly, Quarterly, or Monthly) and the policy term (12 to 35 years) as per your financial convenience.
- Customizable Coverage: Multiple optional Rider Benefits to enhance your safety net against accidents and critical illnesses.
- High Volume Discounts: Attractive rebates on your premium if you opt for a High Sum Assured.
- Emergency Liquidity: Takes care of sudden liquidity needs through a highly accessible loan facility.
3. Eligibility Conditions and Restrictions
Before diving into the financial benefits, it is crucial to understand if this plan aligns with your age and requirements. The entry rules for Plan 714 are highly inclusive, making it suitable for both young children and middle-aged adults:
| Minimum Age at Entry | 8 years (completed) |
|---|---|
| Maximum Age at Entry | 50 years (nearer birthday) |
| Minimum Maturity Age | 20 years (completed) |
| Maximum Maturity Age | 75 years (nearer birthday) |
| Policy Term | Minimum 12 years to Maximum 35 years |
| Minimum Sum Assured | Rs. 2,00,000 |
| Maximum Sum Assured | No Limit (Subject to underwriting) |
Important Note: The Basic Sum Assured shall be in multiples of Rs. 5,000 for a range up to 4,50,000; multiples of Rs. 50,000 for amounts from 4,50,000 to 9,00,000; and multiples of Rs. 1,00,000 for amounts above 9,00,000.
Date of Commencement of Risk
For this policy, the risk will commence immediately on the acceptance of the risk by the corporation. If the policy is issued on the life of a minor (an 8-year-old, for example), the policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age.
4. In-Depth Analysis of Policy Benefits
The core strength of Life Insurance in Bhadra through Ashuram Insurance Expert lies in understanding exactly what your family will receive in times of need or at maturity.
A. Death Benefit (Ultimate Family Financial Security)
If the life assured passes away during the policy term while the policy is in-force, the corporation provides a robust safety net. The Death Benefit payable shall be the "Sum Assured on Death" along with vested Simple Reversionary Bonuses and the Final Additional Bonus, if any.
"Sum Assured on Death" is
calculated as the higher of:
1. The Basic Sum Assured, OR
2. 7 times of your annualized premium.
The 105% Guarantee Rule: LIC provides an ironclad guarantee that the death benefit shall not be less than 105% of the total premiums paid up to the date of death.
B. Maturity Benefit (Long Term Investment Return)
If the policyholder survives the entire policy term and has paid all premiums, they receive a massive wealth corpus. The Maturity Benefit includes the "Sum Assured on Maturity" (which is absolutely equal to the Basic Sum Assured) plus the accumulated Simple Reversionary Bonuses and Final Additional Bonus. This lump sum is perfect for securing your Retirement Planning or funding grand life events.
C. Participation in Profits (Wealth Accumulation)
As long as your policy is in-force, it participates in the profits of LIC. Simple Reversionary Bonuses are declared annually at the end of each financial year and get attached to your policy. Furthermore, a Final Additional Bonus may also be declared in the year the policy results in a claim (either death or maturity), giving your returns a massive final boost.
5. Settlement Options & Regular Income Stream
Under Plan 714, you do not have to take the Maturity Benefit or Death Benefit as a single lump sum. Instead, you (or your nominee) can choose to receive the claim amount in regular instalments over a chosen period of 5, 10, or 15 years.
| Mode of Instalment | Minimum Instalment Amount |
|---|---|
| Monthly | Rs. 5,000/- |
| Quarterly | Rs. 15,000/- |
| Half-Yearly | Rs. 25,000/- |
| Yearly | Rs. 50,000/- |
6. Optional Rider Benefits for 360-Degree Protection
- LIC’s Accidental Death and Disability Benefit Rider: Pays an additional sum on accidental death. On accidental disability, paid in equal monthly instalments for 10 years, waiving future premiums.
- LIC’s Accident Benefit Rider: Provides an additional lump sum exclusively in the event of accidental death.
- LIC’s New Term Assurance Rider: Extra layer of pure life cover on death during the policy term.
- LIC’s Premium Waiver Benefit Rider: Highly recommended for children. If the proposer dies, all future premiums are waived off completely.
- LIC’s Critical Illness Health Rider: Financial support upon the diagnosis of 15 major critical illnesses.
7. Maximizing Your Savings: Rebates and Discounts
| Mode of Payment | Discount on Tabular Premium |
|---|---|
| Annually (Yearly Mode) | 2% Discount |
| Semi-Annually (Half-Yearly) | 1% Discount |
| High Sum Assured (B.S.A.) | Rebate per Rs. 1,000 B.S.A. |
|---|---|
| 2,00,000 to 4,95,000 | Nil |
| 5,00,000 to 9,95,000 | Rs. 2.50 |
| 10,00,000 and above | Rs. 4.00 |
Pro Tip: Always aim for a Sum Assured of 5 Lakhs or 10 Lakhs to take maximum advantage of these heavy discounts!
8. Policy Mechanics: Grace, Revival & Surrender
- Grace Period: 30 days for Yearly/Half-Yearly/Quarterly, and 15 days for monthly payments with full life cover active.
- Revival: 5 consecutive complete years generous window to revive a lapsed policy.
- Paid-Up Value: Automatically converts to Paid-Up policy if you stop paying after 1 full year, ensuring your money is never lost.
- Policy Loan: Available after completion of the first policy year (up to 75% of Surrender Value after two years).
- Surrender Value: Can legally surrender and receive Guaranteed Surrender Value after 1 full policy year.
- Suicide Clause: Within 12 months, nominee gets 80% of total premiums paid or Surrender Value, whichever is higher.
Secure Your Policy Today with Ashuram Insurance Expert
Life is unpredictable, but your family's financial security doesn't have to be. LIC’s New Endowment Plan 714 is a proven, time-tested wealth creation tool that safeguards your legacy. As the premier Insurance Advisor in Bhadra, Ashuram Insurance Expert provides transparent and highly personalized services. Serving Pin Codes: 335501 to 335511.