LIC New Endowment 814 is a plan with the premium paying terms equal to policy term, non-linked Endowment Assurance Plan with Profit. Other benefits are also available under this plan like tax benefits, loan facility and rider benefits.
Sum Assured: Minimum limit for the sum assured is Rs. Rs. 1,00,000/- and there is no maximum limit.
Policy Term: 12 to 35 Years.
Premium Paying Term: Policy Term.
Entry Age: The minimum entry age of the policy holder should be 8 years and the maximum age limit is 55 years.
Maximum Maturity Age: 75 Years.
Premium Payment Mode: Premium can be paid Monthly, Quarterly, Half Yearly or Yearly.
Maturity Benefits: on maturity, basic sum assured along with vested simple reversionary bonus and the final additional bonus is paid to the policyholder.
Death Benefits: If the Death happens after the commencement of risk, the nominee will get:
Base Sum Assured + Simple Reversionary Bonus (every year) + Final Additional Bonus (applicable in the year of death)
Rider benefits: Accidental Death benefit is available during the policy term; accident benefit sum assured will be paid along with death benefit under the basic plan. Disability benefits are paid till 70 years of age of the policyholder.
Income Tax Benefit: Premium paid in this policy is tax exempted under section 80C. The maturity benefits are also exempted from tax under section 10(10D).
Liquidity Benefit: Policy holder can take the loan under this policy after completion of 3 full years of the Policy.
For simplicity study following table
|Min Age||8 Year|
|Max Age||55 Year|
|Max Maturity Age||75 Year|
|Policy Term||12 to 35 Year|
|Premium Paying Term||12 to 35 Year|
|Min Sum Assured||Rs. 1,00,000/-|
|Max Sum Assured||Any|
An example of New Endowment Plan, 814
Suppose someone of 30 years age is going to apply for policy 814 New Endowment Plan for the Basic Sum Assured Rs. 10,00,000/- and 25 years term. Following are Key points of the policy.
“New Endowment“ Table 814
Age: 30 Year
Basic Sum Assured: Rs. 10,00,000/-
|Premium Paying Term||25 Year|
|Policy Term||25 Year|
|Basic Sum Assured||Rs. 10,00,000/-|
|Double Accidental Benefit||Rs. 10,00,000/-|
|Premium First Year||Rs. 39,642/-|
|Premium second Year Onwards||Rs. 38,789/-|
|Total Premium Paid||Rs. 9,70,578/-|
|Money Back At the Year||NA|
|Money back %||NA|
|Total Money Back||NA|
|Maturity Return||Rs. 26,50,000/-|
|Total Return||Rs. 26,50,000/-|
|Life Time Cover||NA|
Above Calculations are approximate and according to current bonus rate. It may vary according to the rate of bonus and taxes.