Lic New Endowment Plan 814 Review – Should You Buy This Policy?

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Lic New Endowment Plan 814, as the name suggests is a typical LIC of India endowment insurance product which is designed such a way that one can get insurance benefit and also investment benefit with moderate return. This policy was launched back in 2014, 3rd January. One can get sum assured value + vested bonus + and FAB if any at the end of the policy term.

In this article, I will share everything about this new lic endowment plan with profits, lic new endowment plan premium chart, lic new endowment plan review, key features, maturity benefits, death benefit, how to calculate return on investment and many more information.

Key Features of Lic New Endowment Plan Table No. 814

Let’s read the basic highlights of this policy and try to understand what are the terms & conditions you should know.

  • In case of sudden death of policy holder during policy term, nominee will get “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable.
  • This sum assured value should be higher of either basic sum assured value or 10 times of annualized premium paid. And this death benefit should not be less than 105% of all the premiums paid.
  • In case you survive till policy term end, you will get sum assured value + Reversionary Bonuses + Final Additional bonus as maturity benefit. This is a common feature of every lic policy.
  • This policy comes with additional riders on payment of additional premiums. They are  Accidental Death and Disability Benefit Rider. One can get max 50 lakh of Accident Benefit Sum Assured.
  • For a higher sum assured value of 5 lakh and above, one can get a 3% rebate on basic sum assured and for annual premium also one can get rebate of 2% of tabular premium.
  • Under Lic New Endowment policy 814, grace period of one month but not less than 30 days will be allowed for payment of  yearly or half-yearly or quarterly premiums and 15 days for monthly mode.
  • You can surrender this policy after paying 3 years premium only.
  • You can ask for loan against Lic New Endowment Policy plan 814.
  • In case you stopped paying premiums, then your policy will be lapsed after 30 days of grace period and you will eligible to get paid up value in case you have stopped payment after 3 years of payment. If you have stopped within first 3 years, then your policy will lapse and you can revive the policy later on.

Eligibility Conditions for basic plan are,

Entry age:
  • Minimum: 8 years (completed)
  • Maximum: 55 years (nearest birthday)
Maximum Maturity age:
  • 75 years (nearest birthday)
Policy term:
  • Minimum: 12 years
  • Maximum: 35 years
Premium Payment mode:
  • Yearly, Half-yearly, Quarterly or Monthly mode (through ECS only or through salary deductions)
Sum Assured:
  • Minimum: Rs.1,00,000/-
  • Maximum: No limit.
  • Sum Assured shall be in multiples of Rs. 5000/-
Documents required for fresh policy:
  • Application form/Proposal form along with photo.
  • Address proof
  • Age proof
  • Medical reports (if required)

How To Use Lic New Endowment policy Premium Calculator & Find Return on investment

Now let’s use the Lic New Endowment policy calculator from lic website and quick run a small example to see how much return this policy will give in long term.

  • TERM: 20 Years
  • AGE: 25 years
  • Sum Assured: 500000
  • Rider : No

Here is the calculated premium amount to get the insurance benefit of Rs 5 lakh, including considering services taxes.

ModePremiumService TaxTotal
Yearly2366182824489
Half Yearly1195941912378
Quarterly60442126256
Monthly2015712086

If I consider the annual premium for 20 years, I have to pay total 20 X 24489 = 4,89,780. On addition to that you will get bonus amount. That means you are paying almost the entire 5 lakh amount from your end only and with the addition of Fab + Bonus you can expect a 5% – 6% net return on maturity.

Should I Buy Lic New Endowment policy 814

Frankly speaking if you are buying this policy to get the insurance cover, then it is not at all enough for your life insurance need. You have to buy a term insurance plan with enough life coverage. From investment point of view also, there are better product which can beat the return of Lic New Endowment policy and I have shared the same many times in blog while reviewing other lic policies.

But in case you are happy to get a moderate return and looking for Fixed deposit alternatives then definitely you can go for this policy. You will get income tax benefit and also the maturity benefit will be tax free. But if you are ready to take little risk on investment and really want to make wealth then you should explore mutual fund investments. You can also save income tax by investing in ELSS funds where people are getting good return on long run as per historical data.

Do you find this review of Lic New Endowment policy useful? Please share your experience and queries if any here by writing a simple comment below. Thanks for reading and sharing this article.

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