LIC New Endowment Plan (914)
The LIC New Endowment Plan (Plan No. 914) has been a cornerstone of traditional life insurance for many Indian families. As a participating, non-linked, individual life assurance savings plan, it was designed to provide a combination of protection and long-term savings.
While the insurance landscape evolves, many existing policyholders have questions regarding their rights and benefits now that the plan is no longer available for fresh purchase. Ashuram Insurance Expert, as a trusted LIC insurance advisory and policyholder support platform, provides this comprehensive guide to help you manage your existing policy effectively.
Key Features & Eligibility
For your reference, the following were the core eligibility criteria under which your policy was issued. This ensures you understand the boundaries of your existing contract.
| Minimum Entry Age | 8 years (completed) |
|---|---|
| Maximum Entry Age | 55 years (nearer birthday) |
| Policy Term | 12 to 35 years |
| Maximum Maturity Age | 75 years |
| Min. Basic Sum Assured | Rs. 1,00,000 |
Benefits Explained
Death Benefit: In the event of unfortunate demise during the term, the nominee receives the "Sum Assured on Death" + Vested Bonuses + Final Additional Bonus (if any). The death benefit will never be less than 105% of premiums paid.
Maturity Benefit: If the policyholder survives till the end of the term, they receive the Basic Sum Assured + Simple Reversionary Bonuses + Final Additional Bonus.
Why Continue This Policy?
Even though new sales are closed, existing policies hold significant value:
- Participating Nature: Earns annual profits from LIC.
- Risk Free: Not linked to the volatility of the stock market.
- Loan Facility: Available after 2 full years of premiums.
- Tax Benefits: Premiums eligible under 80C, Maturity tax-free under 10(10D).
Important Guidelines
Grace Period: You have 30 days for yearly/half-yearly/quarterly modes and 15 days for monthly mode to pay premiums without interest.
Revival: If you missed premiums, you can revive the policy within 5 years from the first unpaid premium. Contact us for calculation of arrears.
Surrender: Available after 2 years, but it is always advisable to continue till maturity for maximum benefit.