LIC New Endowment Plan (714) Calculator

LIC New Endowment Plan (714) Calculator

What this calculator does

LIC's New Endowment Plan (Table No. 714) is a non-linked, participating (with-profits) endowment plan. You pay premiums throughout the Policy Term (the Premium Paying Term equals the Policy Term - there is no limited/early-payment option on this plan), and at the end of the term you receive the Basic Sum Assured plus all bonuses that have vested along the way. If the life assured dies during the policy term, a Sum Assured on Death is paid out immediately, along with bonuses vested up to that point.

This calculator gives you an indicative estimate of:

• the annual premium (and per-installment premium for your chosen payment mode) you would pay throughout the policy term
• the Accident Benefit Rider premium, if you opt for it
• the Sum Assured on Death - the guaranteed minimum payable if the life assured dies during the term
• the Simple Reversionary Bonus that vests every policy year, and the Final Additional Bonus (FAB) paid only at maturity for policies that run long enough
• the total maturity benefit - Basic Sum Assured plus all vested bonuses plus the FAB
• a year-by-year schedule showing how the accrued bonus, and the benefit payable on death, grow over the policy term

based on your entry age, Basic Sum Assured, Policy Term, payment mode, and whether you add the Accident Benefit Rider.

Formula Used

Eligibility. Entry age must be between 8 and 55 years, the Policy Term between 12 and 35 years, and the age at maturity (entry age plus policy term) cannot exceed 75 years:

$$MaturityAge = EntryAge + PolicyTerm \le 75$$

Premium. The illustrative tabular annual premium rate (₹ per ₹1,000 Sum Assured) combines a savings component that shrinks as the policy term lengthens with a mortality component that grows with entry age:

$$BaseRate(age, term) = \frac{1000}{term} \times 0.95 + \big(1.5 + age \times 0.05\big)$$

Policies with a larger Sum Assured earn a small per-mille rebate on the tabular rate - a "High Sum Assured Rebate":

$$Rebate(SumAssured) = \begin{cases} 3 & SumAssured \ge 10{,}00{,}000 \\ 2 & SumAssured \ge 5{,}00{,}000 \\ 0 & \text{otherwise} \end{cases}$$ $$AnnualPremium = \frac{SumAssured}{1000} \times \big(BaseRate(age, term) - Rebate(SumAssured)\big)$$

If you opt for the Accident Benefit Rider, an additional ₹0.50 per ₹1,000 of Sum Assured (capped at a Sum Assured of ₹50,00,000 for the rider) is added:

$$RiderPremium = \frac{\min(SumAssured,\ 50{,}00{,}000)}{1000} \times 0.50$$

The total is then split by your chosen payment mode (yearly, half-yearly, quarterly, or monthly), using LIC's standard modal factors (yearly 1.00, half-yearly 0.510, quarterly 0.260, monthly 0.0875):

$$InstallmentPremium = (AnnualPremium + RiderPremium) \times ModeFactor$$

Sum Assured on Death. The guaranteed minimum payable immediately on death during the policy term, before any vested bonus is added, is the higher of 7 times the annualized premium or the Basic Sum Assured itself:

$$SumAssuredOnDeath = \max\big(7 \times AnnualPremium,\ SumAssured\big)$$

Simple Reversionary Bonus. An illustrative bonus of ₹45 per ₹1,000 Sum Assured vests at the end of every completed policy year, right up to maturity:

$$VestedBonus(year) = year \times \frac{SumAssured}{1000} \times 45$$

Final Additional Bonus (FAB). An illustrative one-time bonus of ₹1,500 per ₹1,000 Sum Assured, paid only at maturity, and only if the Policy Term is 15 years or longer:

$$FAB = \begin{cases} \frac{SumAssured}{1000} \times 1500 & term \ge 15 \\ 0 & \text{otherwise} \end{cases}$$

Maturity Benefit.

$$MaturityBenefit = SumAssured + VestedBonus(term) + FAB$$

Note: these rates are illustrative approximations for planning purposes, not LIC's official rate card, which is IRDAI-approved and can change over time. Always confirm exact figures with LIC or an authorized agent before purchasing a policy.

How to Use

1. Enter your Age at Entry in years (8 to 55).
2. Enter your desired Basic Sum Assured (minimum ₹1,00,000).
3. Choose your Policy Term in years (12 to 35) - remember entry age plus term cannot exceed 75.
4. Choose your Premium Payment Mode - yearly, half-yearly, quarterly, or monthly.
5. Choose whether to add the Accident Benefit Rider.
6. Click Calculate Benefits to see your premium, Sum Assured on Death, bonus schedule, and total maturity benefit.

Worked Example

Suppose you are 30 years old, choose a Basic Sum Assured of ₹5,00,000, a 20-year Policy Term, yearly payment mode, and no rider.

$$BaseRate(30, 20) = \frac{1000}{20} \times 0.95 + (1.5 + 30 \times 0.05) = 47.5 + 3 = 50.5$$

Since the Sum Assured is ₹5,00,000, a rebate of 2 per mille applies:

$$AnnualPremium = \frac{5{,}00{,}000}{1000} \times (50.5 - 2) = 500 \times 48.5 = ₹24{,}250 \text{ per year}$$

Over the 20-year term, total premium payable is 24{,}250 \times 20 = ₹4{,}85{,}000.

The Sum Assured on Death is \max(7 \times 24{,}250,\ 5{,}00{,}000) = ₹5{,}00{,}000, since 7x the annual premium (₹1,69,750) is lower than the Basic Sum Assured.

At maturity, the vested Simple Reversionary Bonus is 20 \times 500 \times 45 = ₹4{,}50{,}000, and since the term is 20 years (≥ 15), a Final Additional Bonus of 500 \times 1500 = ₹7{,}50{,}000 is also paid. The total maturity benefit is:

$$MaturityBenefit = 5{,}00{,}000 + 4{,}50{,}000 + 7{,}50{,}000 = ₹17{,}00{,}000$$