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LIC’s New Endowment Plan 714: Complete Guide, Benefits,
Features, Returns & FAQs (2026)
Life Insurance Corporation of India (LIC) has been a trusted
name in financial protection and long-term savings for decades. Among its
traditional life insurance offerings, LIC’s New Endowment Plan 714
stands out as a balanced plan that combines life cover and savings in a
single policy. This plan is especially popular among individuals who prefer safe,
disciplined, and goal-oriented financial planning.
In this detailed guide, we will explain LIC New Endowment
Plan 714 in simple terms, covering its features, benefits, premium
details, returns, eligibility, tax advantages, pros and cons, and frequently
asked questions. This article is designed to help you make an informed
decision before investing.
What is LIC’s New Endowment Plan 714?
LIC’s New Endowment Plan (Plan No. 714) is a participating,
non-linked, endowment life insurance policy. It provides financial
protection to the policyholder’s family in case of death during the policy
term and a lump-sum maturity benefit if the policyholder survives till
the end of the policy term.
In simple words, it is a traditional
savings-cum-insurance plan where you pay regular premiums, stay insured
throughout the term, and receive maturity benefits along with bonuses.
Key Objectives of LIC New Endowment Plan 714
The plan is designed to fulfill multiple financial
objectives, such as:
- Providing
life insurance coverage
- Encouraging
long-term savings
- Offering
financial security to family members
- Creating
a corpus for future needs like education, marriage, or retirement
- Delivering
stable and predictable returns
Key Features of LIC’s New Endowment Plan 714
Here are the main features of the plan:
1. Participating Plan
The policy is a with-profits (participating) plan,
which means it is eligible for Simple Reversionary Bonuses and Final
Additional Bonus, subject to LIC’s performance.
2. Dual Benefit: Protection + Savings
The plan provides:
- Death
Benefit during the policy term
- Maturity
Benefit on survival till policy maturity
3. Flexible Premium Payment
Premiums can be paid:
- Yearly
- Half-yearly
- Quarterly
- Monthly
(through ECS/NACH)
4. Guaranteed Sum Assured
The Basic Sum Assured is guaranteed and forms the
foundation of both death and maturity benefits.
5. Loan Facility
Policyholders can avail loan against the policy after
it acquires surrender value.
Eligibility Criteria
Minimum and Maximum Age at Entry
- Minimum
Age: 8 years
- Maximum
Age: 55 years (may vary slightly based on policy term)
Policy Term Options
- 12
years
- 16
years
- 21
years
- 25
years
Maximum Maturity Age
- Generally
up to 75 years
Minimum Sum Assured
- ₹1,00,000
(subject to change as per LIC rules)
Premium Payment Details
The premium amount depends on several factors, including:
- Age
of the policyholder
- Policy
term
- Sum
assured
- Premium
payment mode
Premiums are payable throughout the policy term or as
specified by LIC.
Death Benefit Under LIC New Endowment Plan 714
If the policyholder passes away during the policy term, the Death
Benefit payable to the nominee is:
Higher of:
- Sum
Assured on Death, or
- 125%
of Basic Sum Assured
Plus:
- Accrued
Simple Reversionary Bonuses
- Final
Additional Bonus (if applicable)
Sum Assured on Death
It is generally defined as:
- Higher
of 10 times the annualized premium, or
- Basic
Sum Assured
This ensures adequate financial protection for the family.
Maturity Benefit
If the policyholder survives till the end of the policy
term, the Maturity Benefit includes:
- Basic
Sum Assured
- Accrued
Simple Reversionary Bonuses
- Final
Additional Bonus (if declared)
The entire amount is paid as a lump sum on maturity.
Bonus Structure Explained
Since LIC New Endowment Plan 714 is a participating plan,
bonuses play an important role in returns.
Types of Bonuses:
- Simple
Reversionary Bonus
- Declared
annually
- Depends
on LIC’s valuation and performance
- Final
Additional Bonus
- Payable
at maturity or death (after a minimum policy duration)
Note: Bonuses are not guaranteed and depend on LIC’s
financial results.
Surrender Value
The policy acquires Guaranteed Surrender Value (GSV)
after payment of premiums for at least 2 full policy years.
Surrender Options:
- Guaranteed
Surrender Value
- Special
Surrender Value (if applicable)
Surrendering early may result in lower returns, so
long-term continuation is recommended.
Loan Facility
After the policy acquires surrender value, policyholders can
take a loan against the policy.
- Loan
amount depends on surrender value
- Interest
is charged at LIC-declared rates
- Useful
during financial emergencies
Tax Benefits Under LIC New Endowment Plan 714
1. Premium Paid – Section 80C
Premiums paid are eligible for deduction up to ₹1.5 lakh
per financial year under Section 80C of the Income Tax Act, subject to
prevailing tax laws.
2. Maturity & Death Benefits – Section 10(10D)
Maturity proceeds and death benefits are generally
tax-free, provided policy conditions are met.
Disclaimer: Tax benefits are subject to changes in
tax laws. Consult a tax advisor for personalized advice.
Who Should Buy LIC New Endowment Plan 714?
This plan is suitable for:
- Risk-averse
investors
- Salaried
individuals seeking disciplined savings
- First-time
insurance buyers
- Parents
planning for children’s future
- Individuals
looking for stable, long-term returns
It may not be ideal for:
- Those
seeking high market-linked returns
- Short-term
investors
Advantages of LIC New Endowment Plan 714
- Trusted
government-backed insurer
- Guaranteed
sum assured
- Life-long
financial discipline
- Tax
benefits
- Loan
facility
- Suitable
for conservative investors
Limitations of the Plan
- Returns
may be lower compared to equity-linked plans
- Long
lock-in period
- Not
ideal for aggressive wealth creation
LIC New Endowment Plan 714 vs Term Insurance
|
Feature |
Endowment Plan 714 |
Term Insurance |
|
Life Cover |
Yes |
Yes |
|
Savings |
Yes |
No |
|
Maturity Benefit |
Yes |
No |
|
Premium |
Higher |
Lower |
|
Risk Coverage |
Moderate |
High |
Important Things to Consider Before Buying
- Understand
your financial goals
- Compare
with other LIC plans
- Check
affordability of premiums
- Evaluate
long-term commitment
- Read
policy brochure carefully
How to Buy LIC New Endowment Plan 714?
You can purchase the policy through:
- LIC
authorized agents
- LIC
branch offices
- LIC
official website (subject to availability)
Frequently Asked Questions (FAQs)
Q1. Is LIC New Endowment Plan 714 a good investment?
It is suitable for conservative investors who value safety
and steady returns over high growth.
Q2. Are returns guaranteed?
Only the basic sum assured is guaranteed. Bonuses are
dependent on LIC’s performance.
Q3. Can I stop paying premiums?
If premiums are discontinued, the policy may lapse or become
paid-up based on conditions.
Q4. Is this plan better than mutual funds?
It offers lower risk but also lower returns compared to
mutual funds.
Q5. Can NRIs buy this plan?
Eligibility depends on LIC rules and underwriting norms.
Final Verdict
LIC’s New Endowment Plan 714 is a reliable and
time-tested life insurance policy designed for individuals who want financial
security, savings discipline, and moderate returns. While it may not
generate high returns like equity-linked instruments, it provides peace of
mind, stability, and guaranteed benefits backed by LIC’s credibility.
If your goal is safe long-term savings with insurance
protection, this plan can be a suitable option.
Disclaimer
This article is for informational purposes only. Policy
terms, benefits, and tax laws are subject to change. Always refer to the
official LIC policy document and consult a licensed insurance advisor before
making a purchase decision.