What is LIC New Endowment Plan 914?

LIC New Endowment Plan 914 (UIN: 512N277V02) is a Non-Linked, Participating, Individual, Life Assurance Savings Plan offered by the Life Insurance Corporation of India. It is designed to provide an attractive combination of life insurance protection and long-term disciplined savings.

Simply put, this plan does two things at once — it protects your family financially if something were to happen to you, and it also grows your savings so that you receive a good lump sum amount at the end of the policy term. This dual benefit makes it one of LIC’s most popular traditional plans.

How Does an Endowment Plan Work?

An endowment plan is a type of life insurance policy that combines insurance coverage with savings. Each premium you pay goes partly towards life insurance cover and partly towards building a savings corpus.

During the Policy Term

• You pay regular premiums (yearly, half-yearly, quarterly, or monthly)
• Your family is protected with life cover equal to the Sum Assured
• LIC adds Simple Reversionary Bonuses to your policy every year (based on their profits)

At the End of the Policy Term

• You receive the Basic Sum Assured + all accrued bonuses + Final Additional Bonus (if any)
• This lump sum can be used for retirement, children’s education, or any financial goal

In Case of Unfortunate Death

• Your nominee receives the Sum Assured on Death + vested bonuses
• Death benefit is at least 105% of all premiums paid

Bonus System Explained

One of the key attractions of LIC Plan 914 is its bonus participation feature. As the policy is a “with profits” plan, LIC distributes a portion of its profits to policyholders as bonuses.

Simple Reversionary Bonus (SRB)

LIC declares this bonus every year as a percentage of the Sum Assured. Once declared and added to your policy, it stays there permanently — even if future bonuses are lower. This bonus is payable at the time of maturity or death claim.

Final Additional Bonus (FAB)

This is an additional one-time bonus declared by LIC in the year your policy results in a claim (either maturity or death). It is not payable under paid-up policies. The FAB can significantly boost your final payout, especially for longer policy terms.

Important: Bonus rates are not guaranteed. They depend on LIC’s actual investment returns and profits each year.

Tax Benefits Under LIC Plan 914

• Section 80C: Premiums paid are eligible for deduction up to ₹1.5 lakh per year under Section 80C of the Income Tax Act.
• Section 10(10D): Maturity proceeds may be fully exempt from income tax, provided the premium does not exceed 10% of the Sum Assured (for policies issued on or after 1 April 2012). Death claims are fully exempt.
• GST (at applicable rates) is charged additionally on premiums and is not considered for benefit calculation.
• Please consult your tax adviser for personal tax implications as rules may change.

Who Should Buy LIC New Endowment Plan 914?

• Salaried individuals who want disciplined, long-term savings with insurance protection
• Parents planning for their children’s higher education or marriage expenses
• Individuals approaching retirement wanting a lump sum corpus after retirement
• Risk-averse investors who prefer guaranteed returns with bonus participation over market-linked products
• Anyone seeking Section 80C tax savings combined with life insurance

Advantages of LIC New Endowment Plan 914

• ✅ Guaranteed Sum Assured on both death and maturity
• ✅ Participates in LIC’s profits through bonus declarations
• ✅ Flexibility in premium payment mode
• ✅ Option to avail policy loan after 2 full years’ premiums are paid
• ✅ Multiple rider options for enhanced protection
• ✅ Death benefit payout can be taken in instalments (over 5, 10 or 15 years)
• ✅ Grace period of 30 days (15 days for monthly mode)
• ✅ Policy can be revived within 5 years from date of first unpaid premium
• ✅ Surrender option available after 2 full years’ premiums