LIC New Endowment Plan (714) Complete Guide & Calculator

LIC's simplest endowment — savings + life cover + guaranteed maturity. Everything you need to know.

✍️ By Team Lic Calculator 🔍 Reviewed by Haresh Hirapara (20+ yrs in Insurance) 📅 Updated: August 2026 ✅ Expert Verified
📌 Quick Answer

Plan 714 is LIC's simplest endowment plan — pay regular premiums for 12-35 years, get life cover during the term, and receive SA + Bonus + FAB at maturity. Entry age: 8-55, Min SA: ₹1,00,000. Bonus: approximately ₹48 per ₹1,000 SA per year. A straightforward, low-risk savings plan.

📋 Table of Contents
  1. Key Features & Eligibility
  2. Benefits — Maturity & Death
  3. Premium Rate Table
  4. Worked Example — ₹5L SA, Age 25, 20 Years
  5. Who Should & Should Not Buy
  6. Frequently Asked Questions

Key Features & Eligibility

Plan Number714 — New Endowment Plan
TypeParticipating Endowment
Entry Age8 to 55 years
Max Maturity Age75 years
Policy Terms12, 14, 16, 18, 20, 25, 30, 35 years
PPTSame as policy term
Min Sum Assured₹1,00,000
Bonus Rate~₹48 per ₹1,000 SA per year
Payment ModesYearly, Half-Yearly, Quarterly, Monthly
Tax BenefitsSection 80C + 10(10D)

Benefits — Maturity & Death

💰 Maturity Benefit

Sum Assured

+ Accrued Simple Reversionary Bonus

+ Final Additional Bonus (FAB)

= Total Maturity (tax-free)
🛡️ Death Benefit

Higher of:

• 10 × Annual Premium, OR

• 1.25 × Sum Assured

+ All Accrued Bonuses

= Total Death Benefit

Approximate Premium Rates (per ₹1,000 SA)

Age12 Yr16 Yr20 Yr25 Yr30 Yr
20₹82.50₹65.00₹55.00₹47.00₹42.00
25₹83.00₹65.50₹56.00₹47.50₹42.50
30₹84.00₹66.50₹57.00₹48.50₹44.00
35₹86.50₹68.50₹59.50₹51.00₹46.50
40₹90.50₹72.00₹63.00₹55.00—
45₹97.00₹78.00₹69.00₹61.00—

*Approximate rates per ₹1,000 SA (yearly mode, before GST). Actual premium = rate × (SA/1000) + GST - rebates. "—" means term not available at that age due to max maturity age 75. Use our calculator for precise estimates.

Worked Example — ₹5L SA, Age 25, Term 20

Sum Assured₹5,00,000
Entry Age / Term25 years / 20 years
Rate per ₹1,000~₹56
Annual Premium (approx.)₹56 × 500 = ~₹28,000 + GST
Total Premium (20 yrs)~₹5,60,000
💰 Approximate Maturity Calculation:
Sum Assured₹5,00,000
Bonus (₹48 × 500 × 20 yrs)~₹4,80,000
FAB (approximate)~₹21,000
TOTAL MATURITY~₹10,01,000

You invest: ~₹5.6L → You receive: ~₹10L → ~1.8x return (tax-free)

*Approximate estimates based on bonus rate of ₹48/1000/yr. FAB based on approximate rates for 20-year term. Actual maturity depends on LIC's declared bonus rates.

Who Should & Should Not Buy

✅ Ideal For
  • First-time insurance buyers — simplest LIC plan
  • Conservative savers — guaranteed returns, zero risk
  • Tax saving — 80C deduction + tax-free maturity
  • Children's savings — entry from age 8
  • Want lower premium — cheaper than Jeevan Anand
❌ Not Ideal For
  • Want lifelong cover — choose Jeevan Anand (715)
  • Want periodic payouts — choose Money Back plans
  • Want limited PPT — choose Jeevan Labh (736)
  • Want high returns — consider PPF or mutual funds

💡 Expert Tip (Haresh Hirapara): The New Endowment Plan is my go-to recommendation for first-time buyers. It's simple, guaranteed, and the premium is lower than Jeevan Anand. For most people, I suggest Term 20 or 25 years with SA of ₹5-10 Lakhs. Longer terms give more bonus accumulation and lower premiums. If you want lifelong cover after maturity, upgrade to Jeevan Anand — but this plan is perfect if you just want savings + term cover. Consult a financial advisor for the right SA based on your income.

🧮 Calculate Premium & Maturity →

Frequently Asked Questions

What is LIC New Endowment Plan 714?+
A traditional participating endowment plan — pay premiums for 12-35 years, get life cover + guaranteed maturity (SA + Bonus + FAB). Entry age 8-55, min SA ₹1L. One of LIC's simplest and most popular plans.
What is the maturity benefit?+
SA + Bonus + FAB. For ₹5L SA, 20 years: approximately ₹10L maturity. Bonus ~₹48/1000 SA/year. FAB depends on term. All tax-free under Section 10(10D). These are approximate estimates.
What is the premium for ₹5L SA?+
For ₹5L SA, Term 20, Age 25: approximately ₹28,000/year + GST. Premium varies by age and term. Use our calculator for your exact premium. These are approximate rates.
Is it good for investment?+
Returns are approximately 5-6% IRR (tax-free), lower than PPF (~7.1%). But it adds life cover worth lakhs. Best for conservative investors wanting guaranteed savings + insurance. For pure returns, PPF or MFs may be better. See our LIC vs PPF vs FD comparison. Consult a financial advisor.
What is the death benefit?+
Higher of (10 × Annual Premium) or (1.25 × SA) plus all accrued bonus. For ₹5L SA: minimum death benefit is ₹6.25L + bonus. Death benefit is always higher than total premiums paid.
How is it different from Jeevan Anand?+
Jeevan Anand gives life cover after maturity for full SA — Endowment does not. Anand's premium is slightly higher. Returns are similar. Choose Endowment for lower premium, Anand for lifelong cover. See our detailed comparison.
⚠️ Disclaimer

This article is for educational and informational purposes only. LIC-Calculator.com is not affiliated with LIC of India. Premium rates, bonus rates, and maturity amounts are approximate estimates based on publicly available information. Actual premiums and maturity depend on LIC's declared rates. For official information, visit licindia.in.

This is not financial advice. Please consult a certified financial advisor before purchasing any insurance policy.

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