life Insurance plans reviews and all that you need to know about Life Insurance


LIC New Endowment Plan – Plan Number 814

LIC New Endowment Plan is one of the highest selling Endowment plans in the market. This is a participating endowment plan which has a guaranteed Sum assured and gets a Simple Reversionary Bonus every year. Lets see some Key features and review about this plan.

LIC New Endowment Plan – Features

  • This is a Regular premium Endowment Plan – You have to invest every year till maturity.
  • You can choose the Term Between 12 to 35
  • Age Category 8 to 55
  • This plan participates in the profit of LIC every year
  • The Maturity benefit is SUM ASSURED+BONUS declared till date of maturity.
  • Death Benefit is SUM ASSURED+ BONUS declared till date of death.
  • Optional rider available- Accidental Death and Disability Benefit Rider


LIC New Endowment Plan – Review

What is the Net Return you get from this plan?

For understanding the net returns of this plan, we calculated with age as 8 and Sum assured or Rs. 1000000.  We got the following results in two scenarios.

Example 1: Plan- LIC New Endowment Plan

PREMIUM*Rs 23901

Here in the Above case, the policy gave a Maturity Benefit of Rs.26,80,000 which gave a IRR of 5.77%( Assumed at Rs.48/1000* as Simple reversionary Bonus and No terminal Bonus was added).  Total Invested to Returns Ratio is 3.23 Times

Example 2: Plan- LIC New Endowment Plan

PREMIUM*Rs 84661

Here in the Above case, the policy gave a Maturity Benefit of Rs.14,56,000 which gave a IRR of 5.42%( Assumed at Rs.48/1000* as Simple reversionary Bonus and No terminal Bonus was added).  Total Invested to Returns Ratio is 1.43 Times

* Rs 48/1000 Sum assured is the Bonus declared for this plan for the year 2013-14.


Is the Return on LIC New Endowment plan is guaranteed when buying the plan?

No. Since this is a participating endowment plan, the returns of this plan depends on LIC’s profit and Bonus declaration each year. The Initial Guaranteed Amount is Sum Assured only. Each year bonus declared by LIC will be added to the Guaranteed amount. LIC has declared bonus for this plan for the past 10 years continously.However to enjoy the full benefit of this plan you have to complete the full policy term as taken initially.

Bonus Declared For LIC New Endowment Plan for the year 2013-14 is as below.

11 TO 15 YEARS                                              38
16 TO 20 YEARS42
20 + YEARS48

Flexibility\Liquidity of this plan:

This plan can be surrendered any time after paying first three years of premium. However surrender value may be much lower when surrendered before maturity. Both sum assured and Bonus declared will be paid at an reduced value if surrendered before maturity.

Do you have tax benefits for this plan?

YES. LIC New Endowment Plan is a regular premium payment policy, you can enjoy both the tax benefits of 80c and 10(10d). So you can claim exemption for the premium paid towards Section 80c and the maturity amount can be fully exempted under Section 10(10d).

Waytoinsurance score:


Why you should Buy LIC New Endowment Plan?

  1. More than 10 times risk coverage
  2. Safer investment and rider options available.
  3. LIC is a promising brand in India
  4. Have a good Bonus declaration in the past
  5. Tax Benefits of 80c and 10(10d).

Why you shouldn’t Buy LIC New Endowment Plan?

  1. The IRR is lesser and may not beat inflation in longer term.
  2. Only Sum assured is Guaranteed
  3. Lesser liquidity options.
  4. Surrender Value is Very less.
  5. other savings plans are providing better returns.(NSC, KVP and Sukanya Samruddhi Schemes)


This post on LIC New Endowment Plan is just a review of what the plan offers to the customers. We aim at educating ins and outs of this plan. We are trying to simplify the product and make it easy to understand. The Returns provided in this post are for Illustrative purpose only and are Not Guaranteed.  The waytoinsurance score is given by our own metrics of calculation and are no way related to the performance of this plan. All these details are derived from the below links.



you can have a complete and detailed features and illustrations of this plan in the above link.


Leave a Reply

Your email address will not be published. Required fields are marked *

WayToInsurance.com © 2016 | Love Peace | Site Map |