LIC's Endowment Plan 14 Calculator

How to Use This Advanced Calculator? (Step-by-Step Guide)

To generate a realistic, historical data-driven illustration of your policy's net realizable value, you must input precise baseline parameters. A minor discrepancy in your policy commencement date or premium paying term can significantly alter the estimated outcomes. Follow these logical steps to execute your portfolio estimation:

• Step 1: Enter your exact Date of Birth (DOB) and the Date of Commencement (DOC) precisely as they are printed on your official policy bond. The calculation algorithm utilizes these dates to compute your precise entry age and determine the corresponding tabular premium rate.
• Step 2: Select your designated Policy Term from the interactive dropdown menu and enter your Basic Sum Assured. Ensure that this principal amount meets the regulatory threshold. For this specific endowment contract, the minimum Sum Assured starts at . The accuracy of this base figure is critical, as it anchors all subsequent bonus multipliers and maturity calculations.
• Step 3: Choose your active premium payment mode (Yearly, Half-Yearly, Quarterly, Monthly). The algorithm automatically applies the standard tabular rebates (such as the 3% rebate for yearly payments) to optimize your annualized capital outlay.
• Step 4 (The FUP Feature): If you have temporarily or permanently stopped paying premiums, enter the exact date of your last missed premium in the First Unpaid Premium (FUP) Date field. The tool will instantly estimate whether your policy is currently in-force, operating within the grace period, or has been statistically converted to a 'Paid-Up' status.
• Step 5: To estimate a comprehensive death payout for a specific timeline, toggle the 'Death Claim' option to 'Yes', enter a hypothetical date of death, and click 'Calculate Benefits'. The interface will categorize your financial results into easily navigable tabs.

Decoding 'Paid-Up Value' and Financial Terms

A diligent policyholder must be capable of accurately interpreting the financial terminology populating their results dashboard. This engine categorizes your wealth accumulation into fixed provisions and projected mathematical variables.

To fully grasp the mechanics of your capital preservation, we must dive deeper into the mathematical logic of the Paid-Up Value. When a policyholder ceases premium payments, the insurer does not confiscate the capital already injected into the contract, provided that premiums have been fully paid for a minimum continuous period of three years. Instead, the contract is converted into a Paid-Up state, mitigating total financial loss.

The formula utilized by the calculation engine to determine this reduced cover is highly specific: (Number of Premiums Paid / Total Number of Premiums Payable) × Basic Sum Assured.

Consider a practical mathematical scenario: Suppose you initiated a policy with a Basic Sum Assured of for a complete term of 25 years. If, due to a liquidity crisis, you halt payments exactly after 10 full years, the tool will evaluate your Paid-Up Sum Assured as follows: (10 / 25) × 500,000. This equals a Paid-Up Value of .

Crucially, the Vested Bonus accrued during those active 10 years is not lost. The officially declared bonuses up to the FUP date are securely attached to this new Paid-Up Value. However, the policy will immediately cease to participate in future profit declarations, meaning no further Projected Bonuses or Final Additional Bonuses will be added to the ledger. This heavily impacts the final maturity yield, underscoring the importance of maintaining an in-force status.

Policy Lapsing and The Grace Period Logic

Maintaining the continuity of your premium payments is the foundation of a secure financial portfolio. If you miss a scheduled due date, your policy does not instantly lapse. Our computational engine dynamically evaluates your First Unpaid Premium (FUP) date against the current timeline to determine your exact risk status.

If the FUP Date is recent, the tool will display a 'Grace Period' status. The standard grace period universally applied is 30 days for Yearly, Half-Yearly, and Quarterly premium modes, and 15 days for Monthly premium modes. During this highly sensitive window, your life risk cover remains 100% active. If a mortality event (death) occurs during this grace period, the nominee is fully protected and receives the complete death claim. The insurer simply deducts the single outstanding premium from the final settlement corpus before disbursement.

If the grace period expires without capital injection, the policy transitions into the 'Ordinary Revival Period (ORP)'. Typically lasting for six months from the FUP date, this phase indicates that the policy has technically lapsed, but it can be easily revived by paying the outstanding arrears along with a standardized late fee. If a death occurs during the ORP, the claim is generally subjected to strict concession rules depending on how many years the policy had been continuously in-force prior to the default.

If the policy remains in a lapsed state beyond the ORP, it moves into a fully lapsed status. Unless it has acquired a Paid-Up value (by completing 3 years of payments), a fully lapsed policy offers zero risk cover and zero maturity returns, resulting in complete capital destruction.

How is the Death Claim Estimated?

The primary architecture of any endowment asset is its mortality risk cover. When utilizing the 'Death Claim' toggle within our engine, you are requesting a complex actuarial estimation of the insurer's liability on a specific, hypothetical date. The estimated death claim comprises three distinct financial elements:

• The Basic Sum Assured: This is the guaranteed base metric of your contract. If the policy is fully in-force on the date of death, the full Basic Sum Assured is payable. If the policy is operating under a Paid-Up status, the reduced Paid-Up Sum Assured (as calculated earlier) serves as the new base metric.
• The Accumulated Vested Bonus: The engine aggregates all the historical Simple Reversionary Bonuses officially declared by the insurer from your Date of Commencement up to the exact financial year of the hypothetical death.
• The Expected Final Additional Bonus (FAB): If the policy has been consistently in-force for 15 years or more at the time of the mortality event, an estimated terminal bonus is injected into the final corpus. Our estimator leverages the most current available FAB schedules to forecast this lump-sum addition.

To ensure the utmost transparency in our financial modeling, our calculator automatically deducts any 'Outstanding Premium' to give you a highly realistic net estimation.

Consider this operational example: Let us assume you hold an active policy with a Sum Assured of , paying an annual premium of due every January 1st. If the policyholder passes away on January 20th without having paid the due premium, the policy is still legally within the 30-day grace period. Our engine will calculate the total gross claim—say (Base SA + Bonuses)—and automatically subtract the outstanding premium. The interface will then display a net estimated death payout of . This rigorous logic prevents inflated expectations and provides your family with a precise baseline for their estate planning.

Conclusion

LIC Plan 14 has historically functioned as a foundational endowment policy for millions, seamlessly blending robust capital accumulation with critical mortality protection. A logical financial portfolio requires consistent auditing and realistic forecasting. Bookmark this analytical tool to seamlessly track your policy's estimated maturity trajectory, paid-up depreciation, and active death claim limits year on year. Proper visualization of your accrued bonuses ensures you never underestimate the value of your existing assets. To dive deeper into the technical details of this policy, read our complete guide on the .