Pays the rider SA on accidental death; on permanent disability, pays the SA in monthly instalments over 10 years and waives all future premiums.
Tick to add this rider — base premium stays unchanged until selected.
Calculators LIC plans Endowment
LIC New Endowment · Plan 714
The classic. Regular-premium savings + life cover.
Asymmetrica · LIC plan report
LIC New Endowment · Plan 714
Generated 28 May 2026
In short
LIC New Endowment Plan (Plan 714) is the directly selling version of LIC's flagship regular-pay endowment, relaunched in October 2024 under revised IRDAI norms (replacing Plan 914). For a 30-year-old buying ₹5 lakh sum assured over 20 years, the annualised XIRR at current SRB of ₹42/₹1,000 SA/yr and FAB ≈ ₹70/₹1,000 SA at 20 yrs (rising sharply to ₹450 at 25 yrs) works out to approximately 5–6% — modestly ahead of a savings account, with maturity proceeds tax-free under §10(10D) and premiums qualifying for §80C. The seven-times annualised-premium death-benefit floor (down from 10× in the older 914) means the 10% SA rule for 10(10D) is easier to meet. Bonus rates are not contractually guaranteed.
Default scenario at a glance
Numbers below are computed from the latest declared bonus rate (₹42/1000 SA/yr) for a 30-year-old buying ₹5 lakh sum assured for 20 years (PPT 20). Use the calculator below to change any input.
- Annual premium
- ₹26,000
- Total premiums (over PPT)
- ₹5,20,000
- Maturity value i
- ₹9,55,000
- Implicit XIRR i
- 5.5%
- Net gain over premiums
- ₹4,35,000
- Final additional bonus (FAB) i
- ₹35,000
All figures above use LIC's last declared bonus and FAB rates. Bonus rates are reviewed by LIC each year and are not guaranteed for the future — your actual maturity payout may be higher or lower.
Want to verify the XIRR against your actual premium dates? Enter your premiums in the XIRR calculator →
Year-by-year projection (20 years) — show table
| Year | Cumulative premiums | Vested bonus | Death benefit (if claim this year) |
|---|---|---|---|
| 1 | ₹26,000 | ₹21,000 | ₹5,21,000 |
| 2 | ₹52,000 | ₹42,000 | ₹5,42,000 |
| 3 | ₹78,000 | ₹63,000 | ₹5,63,000 |
| 4 | ₹1,04,000 | ₹84,000 | ₹5,84,000 |
| 5 | ₹1,30,000 | ₹1,05,000 | ₹6,05,000 |
| 6 | ₹1,56,000 | ₹1,26,000 | ₹6,26,000 |
| 7 | ₹1,82,000 | ₹1,47,000 | ₹6,47,000 |
| 8 | ₹2,08,000 | ₹1,68,000 | ₹6,68,000 |
| 9 | ₹2,34,000 | ₹1,89,000 | ₹6,89,000 |
| 10 | ₹2,60,000 | ₹2,10,000 | ₹7,10,000 |
| 11 | ₹2,86,000 | ₹2,31,000 | ₹7,31,000 |
| 12 | ₹3,12,000 | ₹2,52,000 | ₹7,52,000 |
| 13 | ₹3,38,000 | ₹2,73,000 | ₹7,73,000 |
| 14 | ₹3,64,000 | ₹2,94,000 | ₹7,94,000 |
| 15 | ₹3,90,000 | ₹3,15,000 | ₹8,15,000 |
| 16 | ₹4,16,000 | ₹3,36,000 | ₹8,36,000 |
| 17 | ₹4,42,000 | ₹3,57,000 | ₹8,57,000 |
| 18 | ₹4,68,000 | ₹3,78,000 | ₹8,78,000 |
| 19 | ₹4,94,000 | ₹3,99,000 | ₹8,99,000 |
| 20 | ₹5,20,000 | ₹4,20,000 | ₹9,20,000 |
Run the numbers
Premium, maturity, and the year-by-year cash value at the latest declared bonus rate. Toggle the 3-scenario view to see a pessimistic / base / optimistic spread.
Assumptions
- Age
- 30 yrs
- Sum assured
- ₹5,00,000
- Policy term
- 20 yrs
- Premium-paying term
- 16 yrs
- Premium frequency
- yearly
- Bonus scenario
- base (42/1000 SA)
yrs
₹
Policy term
Premium paying term
Premium frequency
Maturity at year 20
₹9,55,000
At base bonus rate (42/1000 SA)
Base annual premium
₹26,000
GST-free since 22 Sep 2025
Total paid (over 16 yrs)
₹4,16,000
Implicit XIRR
6.52%
Lower than NIFTY 50; that's expected.
Net gain
₹5,39,000
Maturity value and FAB use LIC's last declared bonus rates. These are reviewed each year and are not guaranteed for the future — actual payouts can be higher or lower.
Bonus assumption:
Optional Riders
Add-ons that increase cover for an extra annual premium—capped at 30% of the base premium. You can pick either ADDB or AB, not both.
0 / 6 active +₹0/yr
Pays the rider SA in lump sum on accidental death within 180 days. Death-only — no disability cover.
Tick to add this rider — base premium stays unchanged until selected.
Adds pure term life cover for a nominal premium. Inception-only — cannot be bolted on later.
Tick to add this rider — base premium stays unchanged until selected.
Waives all future base-policy premiums on death of the proposer. Designed for child plans (proposer = parent, life assured = minor).
Tick to add this rider — base premium stays unchanged until selected.
Lump sum payout on diagnosis of any covered critical illness. Choose between a 15-illness or 40-illness option. Inception-only.
Tick to add this rider — base premium stays unchanged until selected.
For female policyholders only. Covers female-specific illnesses, pregnancy complications and congenital anomalies in the child. Inception-only.
Tick to add this rider — base premium stays unchanged until selected.
Year-by-year cash value (illustrative) What does this mean?
| Year | Total paid | Estimated cash value |
|---|---|---|
| 1 | ₹26,000 | ₹21,000 |
| 2 | ₹52,000 | ₹42,000 |
| 3 | ₹78,000 | ₹63,000 |
| 4 | ₹1,04,000 | ₹84,000 |
| 5 | ₹1,30,000 | ₹1,05,000 |
| 6 | ₹1,56,000 | ₹1,26,000 |
| 7 | ₹1,82,000 | ₹1,47,000 |
| 8 | ₹2,08,000 | ₹1,68,000 |
| 9 | ₹2,34,000 | ₹1,89,000 |
| 10 | ₹2,60,000 | ₹2,10,000 |
| 11 | ₹2,86,000 | ₹2,31,000 |
| 12 | ₹3,12,000 | ₹2,52,000 |
| 13 | ₹3,38,000 | ₹2,73,000 |
| 14 | ₹3,64,000 | ₹2,94,000 |
| 15 | ₹3,90,000 | ₹3,15,000 |
| 16 | ₹4,16,000 | ₹3,36,000 |
| 17 | ₹4,16,000 | ₹3,57,000 |
| 18 | ₹4,16,000 | ₹3,78,000 |
| 19 | ₹4,16,000 | ₹3,99,000 |
| 20 | ₹4,16,000 | ₹9,55,000 |
Our take
Should you buy New Endowment?
Plan 714 is LIC's simplest endowment: you pay premiums for the full policy term, the policy matures, and you receive the sum assured plus accrued bonuses as a lump sum. There is nothing clever or exotic here — no limited-pay tail, no periodic survival benefits, no post-maturity cover. What it offers is predictability, the §80C deduction, and the discipline of a contractual savings commitment that is psychologically hard to break. The improved October-2024 surrender rules (surrender possible after just one year, SSV benchmarked to G-Sec + 50 bps) mean the downside of early exit is somewhat smaller than before, but the typical IRR is only attractive if held to maturity.
- XIRR is typically 4.5–6%. If you are comparing it to equity mutual funds over the same horizon, the comparison is structurally unfair — the risk profiles are incomparable.
- Bonuses are not guaranteed. Our maturity estimate assumes 2024-25 SRB rates forward; actual declared rates may be lower in future years.
- FAB scales sharply with term on this plan: ₹25/1000 SA at 16 yrs, ₹70/1000 at 20 yrs, ₹450/1000 at 25 yrs (LIC's standard endowment-group ladder). The choice between the 20- and 25-year option is largely a choice about FAB.
- The 7× death-benefit multiple (vs old 10×) lowers the minimum cover for young buyers; for pure protection, a standalone term plan is still far cheaper.
- §80C is the real product. Without that deduction the arithmetic is weak; with it, the net-of-tax case improves materially for those in the 30% slab.
- Surrender before year 3 is almost always a loss. Even under the improved 2024 framework, the early surrender values are still low in absolute rupee terms.
- Entry age of 8 years makes it usable as a child savings plan, but dedicated child plans (like Jeevan Tarun or Amritbaal) offer better-structured payouts.
Asymmetrica isn't an insurance advisor. The opinions above are editorial; the numbers in the calculator are computed from the plan's own brochure. Read both, then decide.
Deep dives
More on New Endowment
-
Full review
Who it works for, who it doesn't, what tends to go wrong over the term, and how our take compares with other reviewers.
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Surrender value
Year-by-year GSV vs SSV table for the default scenario, with plan-specific notes on when exiting actually breaks even.
-
Tax treatment
§80C eligibility, §10(10D) maturity exemption, the 10× SA rule, and how each clause applies to a typical buyer of this plan.
Plan reference
Eligibility & limits
- Category
- Endowment
- UIN / plan number
- 714
- Plan status
- Active for sale
- Snapshot date
- 26 Apr 2026
Entry age, term and sum-assured bands are on the official plan page; we'll mirror them here once the per-plan facts are extracted.
Paid-up value
Stop premiums after at least 2 full years and the policy stays in force as a paid-up policy at a reduced sum assured. Already-vested bonuses are preserved; no new bonuses accrue.
Policy loan
Once the policy has a surrender value (typically year 3), you can borrow up to 90% of it from LIC at the prevailing policy-loan rate — short-term liquidity without giving up the policy's bonuses.
Sources
Last updated · site changelog