LIC Planner
ULIP Calculator SuiteLIC New Endowment Plus
Plan 735 Calculator
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💰 Wealth Growth Summary
📈 Fund Value Growth Over Years
Year-Wise Projection Table
Estimated fund value at end of each year
| Year | Age | Premium Invested | Cumul. Premium | Fund Value | Loyalty Add. | Total Value |
|---|
Smart Insights
Personalised observations for your plan
How Your Premium Gets Invested
The journey of your money inside Plan 735
Charge
| Loyalty Addition Milestone | Addition Rate | How Calculated | Who Gets It? |
|---|---|---|---|
| End of 5th Year | 1.5% | Of average fund value in year 5 | Active policy only |
| End of 10th Year | 2.5% | Of average fund value in year 10 | Active policy only |
| End of 15th Year | 3.0% | Of average fund value in year 15 | Active policy only |
| End of 20th Year | 3.5% | Of average fund value in year 20 | Active policy only |
What is LIC New Endowment Plus Plan 735?
LIC New Endowment Plus Plan 735 is a Unit Linked Insurance Plan (ULIP) offered by Life Insurance Corporation of India. It is a unique financial product that combines two important goals — life insurance protection and market-linked investment growth — into a single plan.
Unlike traditional LIC endowment plans where returns are fixed and declared by LIC, Plan 735 invests your premium into one of four market-linked funds. The value of your investment grows (or fluctuates) based on the Net Asset Value (NAV) of the chosen fund. For complete official policy details, you can visit the LIC New Endowment Plus Official Details page.
This plan is especially suited for individuals who want both insurance cover and wealth creation over a long investment horizon of 10 to 20 years.
How ULIP Plans Work
ULIP stands for Unit Linked Insurance Plan. When you pay a premium, a portion of it goes towards life insurance cover (mortality charge) and the remaining amount is invested in a market-linked fund of your choice. Here is how the money flows:
- You pay the annual premium to LIC
- LIC deducts Premium Allocation Charges (3% in Year 1, 2% in Year 2, 1% from Year 3)
- The remaining amount is used to buy units of your chosen fund at the current NAV
- LIC deducts monthly Policy Administration Charges and Mortality Charges by cancelling units
- Your fund grows as the NAV of the fund moves with the market
- At maturity, you receive the total fund value plus loyalty additions
Fund Options Explained in Detail
🔵 Bond Fund
Invests 100% in government bonds and fixed income instruments. This is the lowest-risk fund, ideal for conservative investors who prioritise capital safety over high returns. Expected return range: 4–6% per annum. Fund Management Charge: 0.50% per annum.
🟢 Secured Fund
Invests primarily in debt instruments with a small portion in equities. Offers slightly better return potential than the Bond Fund with marginally higher risk. Expected return range: 5–7% per annum. Fund Management Charge: 0.60% per annum.
🟡 Balanced Fund
A mix of equity and debt instruments. Offers a balanced approach — moderate risk with moderate return potential. Suitable for investors with a medium risk appetite and a 10–15 year investment horizon. Expected return range: 6–10% per annum. Fund Management Charge: 0.70% per annum.
🔴 Growth Fund
Invests predominantly in equities. This is the highest-risk and highest-potential-return fund in Plan 735. Suitable only for investors comfortable with market volatility and who have a long-term view of 15–20 years. Expected return range: 7–12% per annum. Fund Management Charge: 0.80% per annum.
NAV Growth Explained Simply
NAV stands for Net Asset Value. Think of it as the price of one unit in your fund. When you invest your premium, LIC buys units at the current NAV. For example, if the NAV is ₹10 and you invest ₹48,500, you receive 4,850 units.
As markets grow, the NAV increases. If after 15 years the NAV grows to ₹40, your 4,850 units are now worth ₹1,94,000. This is the basic mechanism of NAV-based wealth creation in ULIPs. Returns are not guaranteed and depend on market performance.
Insurance Plus Investment Benefits
LIC Plan 735 offers a meaningful combination of protection and investment:
- Life Cover: In case of the policyholder’s unfortunate death, the nominee receives the higher of the Sum Assured or the Fund Value as on the date of death
- Investment Growth: Your fund has the potential to grow significantly over 15–20 years through compounding and market returns
- Loyalty Additions: LIC rewards long-term policyholders with additional units every 5 years
- Fund Switching: You can switch between fund options during the policy term based on changing market conditions or personal financial goals
- Flexible Premiums: Choose from yearly, half-yearly, quarterly, or monthly premium payment modes
Charges in LIC ULIP Plans — Explained Simply
Understanding ULIP charges is important before investing. LIC Plan 735 has four main types of charges:
- Premium Allocation Charge: 3% in Year 1, 2% in Year 2, 1% from Year 3 onwards. This is deducted upfront before your premium is invested.
- Policy Administration Charge: ₹60 per month in Year 1, increasing by 5% per annum. Deducted monthly by cancelling units.
- Mortality Charge: Depends on your age, gender, smoker/non-smoker status, and the Sum at Risk (Sum Assured minus Fund Value). Deducted monthly.
- Fund Management Charge: 0.50% to 0.80% per annum depending on the fund chosen. Automatically adjusted in the daily NAV calculation.
Tax Benefits of LIC Plan 735
LIC New Endowment Plus Plan 735 offers attractive tax benefits under the Income Tax Act, 1961:
- Section 80C: Premiums paid are eligible for deduction up to ₹1,50,000 per year
- Section 10(10D): Maturity proceeds are generally tax-free, subject to conditions (premium not exceeding 10% of Sum Assured for policies issued after April 2012)
- Death Benefit: The death benefit received by the nominee is fully exempt from income tax
Tax laws are subject to change. Please consult a tax advisor for personalised guidance.
Risks and Rewards of Investing in Plan 735
Like all ULIP products, LIC New Endowment Plus Plan 735 carries both risks and rewards:
- ✅ Long-term wealth creation potential through equity markets
- ✅ Life insurance protection for your family
- ✅ Tax benefits under Section 80C and 10(10D)
- ✅ Loyalty additions for staying invested long-term
- ⚠️ Returns are not guaranteed and depend on market performance
- ⚠️ Early surrender may reduce your fund value due to charges and lock-in rules
- ⚠️ ULIP charges reduce effective investment amount, especially in early years
Who Should Invest in LIC Plan 735?
LIC New Endowment Plus Plan 735 is best suited for:
- Individuals aged 18–50 years looking for a long-term savings and insurance product
- Investors comfortable with market-linked returns and willing to stay invested for 15–20 years
- People who want to combine their insurance and investment needs in a single plan
- Taxpayers who want to utilise the Section 80C deduction limit
- Those looking for loyalty bonuses for staying invested over multiple years
This plan may not be suitable for individuals who want guaranteed returns, those with a very short investment horizon, or those who may need to withdraw their money early.