| Year | Age | Cum. Premium Paid | Accrued Bonus | Death Benefit | GSV | Maturity Value |
|---|
LIC New Endowment Plan 714 Calculator — Know Your Premium & Maturity Benefit Before You Buy
Amit, a 32-year-old teacher in Nagpur, wanted a simple plan that would build a corpus by the time his daughter turned 18. He didn’t want market risk, didn’t want the complexity of ULIPs, and needed life cover along the way. His LIC agent suggested New Endowment Plan 714 — a traditional participating plan where you pay regular premiums, get guaranteed life cover, and collect a maturity payout that includes bonuses. Before he filled out the proposal form, Amit wanted exact numbers: how much per month, what will I get at the end, what if I die midway? This LIC New Endowment Plan 714 calculator answers every one of those questions — down to the rupee, based on LIC’s published brochure rates.
What Is LIC New Endowment Plan 714?
Plan 714 (UIN: 512N277V03) is a participating, non-linked, regular premium endowment assurance plan from LIC of India. You pay premiums throughout the policy term — yearly, half-yearly, quarterly, or monthly — and at the end of the term, you receive the Sum Assured plus all accumulated bonuses (Simple Reversionary Bonus + Final Additional Bonus if declared). If you die during the term, your nominee gets a death benefit that is the higher of the Basic Sum Assured or seven times the annualized premium, subject to a floor of 105% of all premiums paid so far.
Unlike unit-linked plans, your money is not market-linked — it sits in LIC’s participating fund and earns bonuses declared annually by LIC of India. Once declared, bonuses are guaranteed and become part of the maturity benefit. The plan also offers meaningful tax benefits, optional riders for extra protection, and a loan facility after premiums are paid for at least 3 years.
- Regular premium — pay yearly, half-yearly, quarterly, or monthly throughout the term
- Entry age: 8 years to 50 years (nearer birthday); minimum maturity age 20 years, maximum 75 years
- Policy term: 12 to 35 years — choose based on your goal horizon
- Minimum Basic Sum Assured: ₹2,00,000; no upper limit (multiples of ₹1,000)
- Mode rebates: 2% (Yearly), 1% (Half-Yearly), Nil (Quarterly & Monthly)
- High Sum Assured Rebate: up to ₹4 per ₹1,000 BSA for SA of ₹10 lakh and above
- Four optional riders available at inception: ADDB Rider, AB Rider, NTAR, and PWBR
- Death benefit: Higher of BSA or 7× annualized premium, always ≥ 105% of total premiums paid
How to Use This LIC New Endowment Plan 714 Calculator
- Enter your Basic Sum Assured. Minimum ₹2,00,000, in multiples of ₹1,000. Larger SA qualifies for High SA Rebate, which reduces the effective premium — the calculator handles this automatically.
- Enter your Age at Entry. The plan uses “nearer birthday” — enter your age in completed years (range 8–50). Optionally enter your Date of Birth and the calculator auto-fills the NBD age.
- Select the Policy Term between 12 and 35 years. Terms that would push your maturity age above 75 are automatically greyed out once you enter your age.
- Choose a Premium Mode — Yearly gets a 2% rebate; Half-Yearly a 1% rebate; Quarterly and Monthly carry no rebate. The instalment amount is displayed instantly.
- Select Optional Riders if you want additional coverage. ADDB and AB Rider are mutually exclusive — you can choose only one (or neither). NTAR and PWBR can be added independently.
- Pick a bonus scenario — Low, Medium, or High — corresponding to LIC’s official benefit illustration scenarios. These determine the projected bonus rate for the year-wise table.
- Click Calculate My Premium & Benefits. You’ll get a full premium breakdown, death benefit, maturity benefit, surrender values year by year, and the internal rate of return (IRR).
LIC New Endowment Plan 714 — Key Features at a Glance
| Feature | Details |
|---|---|
| Plan Type | Participating, Non-Linked, Regular Premium, Endowment |
| UIN | 512N277V03 |
| Entry Age | 8 years to 50 years (nearer birthday) |
| Minimum Maturity Age | 20 years (nearer birthday) |
| Maximum Maturity Age | 75 years (nearer birthday) |
| Policy Term | 12 to 35 years |
| Premium Paying Term | Equal to policy term (no limited pay option) |
| Minimum Basic Sum Assured | ₹2,00,000 (in multiples of ₹1,000) |
| Maximum Basic Sum Assured | No limit |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly (ECS) |
| Mode Rebate | 2% (Yearly), 1% (Half-Yearly), Nil (Quarterly/Monthly) |
| Bonus Type | Simple Reversionary Bonus + Final Additional Bonus (FAB) |
| Maturity Benefit | BSA + Vested Bonuses + FAB (if any) |
| Death Benefit | Higher of BSA or 7× annualized premium; always ≥ 105% of total premiums paid; plus bonuses + FAB |
| Riders Available | ADDB Rider or AB Rider (mutually exclusive); NTAR; PWBR |
| GST (Year 1) | 4.5% on first year instalment premium |
| GST (Year 2 onwards) | 2.25% on renewal instalment premiums |
| Loan Facility | Available after 3 consecutive years of premium payment |
| Surrender | After 2 years; Guaranteed Surrender Value formula applies |
| Tax Benefit | Section 80C on premiums paid; Section 10(10D) on maturity (subject to 10% SA condition) |
LIC New Endowment Plan 714 Premium Calculation — How It Works
The base annual premium is derived from LIC’s tabular rate table, which varies by entry age (nearer birthday) and policy term. The rate is expressed per ₹1,00,000 of Sum Assured — for example, a 30-year-old choosing a 20-year term pays approximately ₹4,370 per ₹1 lakh of SA per year. The calculator uses bilinear interpolation on brochure data points (ages 20/30/40 × terms 15/25/35) to derive the rate for your specific age and term combination.
From this base annual premium, two deductions are applied — Mode Rebate (if yearly or half-yearly mode is selected) and High Sum Assured Rebate (if SA is ₹5 lakh or above). The result is the Net Annual Premium. For instalment calculation, this annual amount is divided by the mode frequency, and GST is then added on top: 4.5% in the first policy year and 2.25% from the second year onwards.
Premium Worked Example
Let’s take Sunita: age 30 (nearer birthday), Basic Sum Assured ₹5,00,000, policy term 20 years, yearly mode.
- Tabular rate (interpolated): ≈ ₹4,370 per ₹1,00,000 SA/year
- Base annual premium: (5,00,000 / 1,00,000) × 4,370 = ₹21,850
- Mode rebate (2% yearly): ₹21,850 × 0.02 = ₹437
- SA Rebate (₹5L–₹9.99L slab = 2.5‰): (2.5 / 1,000) × 5,00,000 = ₹1,250
- Net annual premium: ₹21,850 − ₹437 − ₹1,250 = ₹20,163
- Year 1 premium with GST (4.5%): ₹20,163 × 1.045 = ₹21,070
- Year 2+ premium with GST (2.25%): ₹20,163 × 1.0225 = ₹20,617
Total premiums paid over 20 years: ₹21,070 (year 1) + ₹20,617 × 19 (years 2–20) = approximately ₹4,12,793 (inclusive of all GST). That’s the total cash outflow over the policy term.
High Sum Assured Rebate — How It Reduces Your Effective Premium
| Basic Sum Assured Range | Rebate (₹ per ₹1,000 of BSA) |
|---|---|
| ₹2,00,000 to < ₹5,00,000 | Nil |
| ₹5,00,000 to < ₹10,00,000 | ₹2.50 per ₹1,000 BSA (2.5‰) |
| ₹10,00,000 and above | ₹4.00 per ₹1,000 BSA (4.0‰) |
Maturity Benefit — What Will You Actually Receive?
At the end of the policy term, LIC pays: Basic Sum Assured + all vested Simple Reversionary Bonuses + Final Additional Bonus (FAB), if declared at that time. Continuing Sunita’s example above: BSA = ₹5,00,000. At the Medium scenario (LIC assumes ₹20 per ₹1,000 SA/year), total bonus over 20 years = (5,00,000 / 1,000) × 20 × 20 = ₹2,00,000. FAB (medium scenario, ≈ ₹220 per ₹1,000 SA) = (5,00,000 / 1,000) × 220 = ₹1,10,000. Total maturity benefit = ₹5,00,000 + ₹2,00,000 + ₹1,10,000 = ₹8,10,000 against a total outflow of approximately ₹4,13,000.
At the Low scenario (bonus ₹11.5/₹1,000/year, no FAB), total maturity ≈ ₹6,15,000. At the High scenario (₹29/₹1,000/year, FAB ₹440/₹1,000), total maturity ≈ ₹10,90,000. The calculator displays all three scenarios side by side so you can plan conservatively or optimistically — the truth in any given year will depend on LIC’s actual bonus declaration.
Death Benefit — Life Cover Explained
If the life assured dies at any time during the policy term (after risk commencement), the nominee receives the Sum Assured on Death plus all vested bonuses plus FAB if applicable. The Sum Assured on Death for Plan 714 is the higher of: (a) the Basic Sum Assured, or (b) 7 times the annualized premium (net of mode rebate and SA rebate, but before GST). Additionally, the death benefit is always at least 105% of the total premiums paid up to the date of death (excluding rider premiums and taxes).
The “7× floor” is significant for younger entrants with high SA — in practice the BSA is usually the governing number, but for very long terms with high rebates the 7× premium figure can occasionally exceed BSA. The calculator computes all three floors and shows which one governs for your specific inputs.
For child entry ages (8 to below 18), risk commencement is from the policy start date itself — Plan 714 does not have the “deferred risk” rule that applies to some other LIC plans.
Optional Rider Benefits — Extra Coverage You Can Add
Plan 714 offers four optional riders at the time of taking the policy. You cannot add riders midway through the term.
| Rider | What It Covers | Note |
|---|---|---|
| Accidental Death & Disability Benefit Rider (ADDB) | Additional SA on accidental death; disability benefit as regular income installments | Mutually exclusive with AB Rider — choose one or neither |
| Accident Benefit Rider (AB Rider) | Additional SA on accidental death only (no disability cover) | Mutually exclusive with ADDB Rider — choose one or neither |
| New Term Assurance Rider (NTAR) | Additional pure term life cover for the same policy term | Can be combined with accident rider |
| Premium Waiver Benefit Rider (PWBR) | Future premiums waived if the proposer (parent/guardian) dies — for child life policies | Relevant when the proposer and life assured are different people |
Rider premiums are separate from the base premium and are also subject to GST. The calculator’s results show the base plan figures; actual rider premiums should be confirmed with your LIC agent, as rider SA limits, premium rates, and eligibility conditions vary by age and term.
Surrender Value — What If You Exit Early?
Plan 714 acquires a surrender value after at least 2 full years’ premiums have been paid. The Guaranteed Surrender Value (GSV) is calculated as a percentage of premiums paid (excluding Year 1) multiplied by a GSV factor that increases with policy duration. Additionally, a Bonus Surrender Value is added based on vested bonuses and a factor that depends on years remaining in the policy.
In the early years (2–7), the GSV percentage is low (30%–50% of premiums paid), making early surrender economically punishing. The factor improves significantly from year 8 onwards — climbing from 50% towards 90% near maturity. The Special Surrender Value may be higher and is reviewed annually. The calculator shows GSV year by year so you can see your exit value at any point in the policy term.
Tax Benefits You Get
Section 80C: The annual premium paid for Plan 714 qualifies for deduction under Section 80C of the Income Tax Act, 1961, subject to the overall limit of ₹1.5 lakh per year. This includes premiums paid for a policy on your own life, your spouse’s life, or your children’s lives. The deduction is available in each year that the premium is paid — a key advantage over single premium plans where the full 80C claim falls in just one year.
Section 10(10D): Maturity and death proceeds are exempt from tax under Section 10(10D), provided the annual premium does not exceed 10% of the Sum Assured (for policies issued on or after 1 April 2012). For Plan 714, if BSA = ₹5,00,000 and net annual premium = ₹20,163, the ratio is about 4% — comfortably within the 10% limit. So maturity is tax-free in Sunita’s example. Always verify this condition for your specific numbers, and consult a tax advisor.
Is LIC New Endowment Plan 714 Right for You?
Buy it if you:
- Want a safe, government-backed savings plan with life cover bundled in — no market risk
- Are saving for a specific medium-to-long term goal: child’s education, marriage corpus, or retirement supplement
- Prefer regular premium discipline — paying systematically every year (or month) suits salaried individuals
- Want to utilise your full Section 80C limit every year with a guaranteed insurance product
- Need modest returns with capital protection and don’t mind the relatively lower IRR compared to equity
Skip it if you:
- Are primarily looking for high investment returns — equity mutual funds will substantially outperform over 15–35 years on a pure return basis
- Need a large pure life cover at low cost — a term plan gives far more cover per rupee of premium
- Have irregular income and may struggle with keeping annual premium payments uninterrupted for 12–35 years
- Are above 45 — shorter remaining earning years mean the compound bonus effect is diminished; re-evaluate whether term + ELSS makes more sense for you
Frequently Asked Questions
Use the calculator at the top of this page to get your exact premium, maturity benefit, surrender value year by year, and IRR for any age and term combination in under 30 seconds — then walk into your LIC branch with the numbers already in hand.
Disclaimer: This article is for educational purposes only. Premium figures are based on LIC’s published illustrative rates for standard (healthy) lives and may differ for non-standard or rated lives. LIC bonus rates (Simple Reversionary Bonus and Final Additional Bonus) shown are illustrative — actual rates are declared annually by LIC of India and are not guaranteed in advance. GST rates are as per prevailing government notifications and are subject to change. Section 80C and 10(10D) tax treatment depends on your individual circumstances — consult a qualified tax advisor or chartered accountant. Please consult a licensed LIC agent or an IRDAI-registered financial advisor before making any insurance purchase decision.
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Mohibul Islam is an LIC agent with 7+ years of experience. He also works in web development and blogging. He creates simple tools on LIC Plan Calculator to help people understand LIC plans, calculate benefits, and make better financial decisions easily.