LIC Plan 914 (New Endowment) details including launch date 01.02.2020 and withdrawal date 01.10.2024.
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Welcome to Jeevan Bima Bazaar (JBB), your trusted guide to the technical nuances of life insurance legacy. LIC Plan 914 (New Endowment) officially completed its market journey on 1st October 2024, after being launched on 1st February 2020. While the plan is no longer available for new sale, it remains a critical asset for millions of existing policyholders and a key service responsibility for LIC agents. Whether you are an Agent looking to provide expert claim assistance or a Policyholder aiming to maximize your benefits in , understanding the revised rules—such as the 2-year loan eligibility, the 5-year revival window, and the settlement options—is essential. This comprehensive guide breaks down the technical circular CO/PD/128 to help you manage this legacy policy with absolute clarity.

What is LIC New Endowment Plan (Plan 914)?

The LIC New Endowment Plan (Plan 914) is a non-linked, participating, individual life assurance savings plan. In simpler terms, it is a traditional "With-Profit" policy that offers a combination of protection and savings.

JBB’s analysis indicates that this plan was specifically introduced to replace the older Plan 814 to strictly comply with the IRDAI 2019 regulations. As a "participating" plan, it allows policyholders to share in the profits of the Life Insurance Corporation of India through Simple Reversionary Bonuses and Final Additional Bonuses (FAB), provided the policy is in full force.

Eligibility Criteria

For the millions who currently hold this policy, the eligibility parameters at the time of purchase define the final payout structure. Understanding these boundaries helps in calculating the exact Corpus Creation expectations for the future.

Key Eligibility Matrix

Parameter Criteria
Minimum Entry Age 8 years (Completed)
Maximum Entry Age 55 years (Nearer Birthday)
Maximum Maturity Age 75 years
Minimum Policy Term 12 years
Maximum Policy Term 35 years
Minimum Sum Assured
Maximum Sum Assured No Upper Limit (Subject to underwriting)

Maturity Benefit: The Wealth Accumulation

If the policyholder survives the entire term, LIC pays the "Maturity Benefit." According to JBB data, this is a powerful tool for long-term goals like a child's marriage or retirement.

  • Formula: Basic Sum Assured + Accrued Simple Reversionary Bonuses + Final Additional Bonus (if any).

Illustrative Example: The Wealth Accumulation in Action

To understand how Plan 914 builds a Wealth Corpus, let’s look at the journey of Mr. JBB, a 30-year-old professional.

  • Policyholder: Mr. JBB (Age: 30)
  • Basic Sum Assured (BSA):
  • Policy Term: 20 Years
  • Premium Paying Term: 20 Years

The Result:

If Mr. JBB survives the full 20-year term and pays all premiums timely, he will receive a significant lump sum in :

  • Sum Assured on Maturity: Guaranteed .
  • Vested Bonuses: Total Simple Reversionary Bonuses accumulated over 20 years.
  • Final Additional Bonus (FAB): A one-time reward for the long-term 20-year commitment.

JBB’s Strategic Tip: Mr. JBB can either take this entire amount as a tax-free lump sum or opt for the Settlement Option to receive this wealth in installments over 5, 10, or 15 years, acting as a structured Pension-like income.

Death Benefit: The Protection Shield

In the unfortunate event of the policyholder's demise during the term, LIC provides:

  • Sum Assured on Death: Defined as the higher of the Basic Sum Assured or 7 times the annualized premium.
  • Minimum Guarantee: The death benefit shall not be less than 105% of the total premiums paid up to the date of death.

Illustrative Example: The Protection Shield in Action

The true value of LIC Plan 914 lies in its ability to provide Financial Security when the family needs it most. Let's use the same example of Mr. JBB.

  • Basic Sum Assured:
  • Scenario: An unfortunate event occurs in the 10th policy year.

The Payout:

According to JBB's data analysis of the technical circular, the nominee will receive:

  • Sum Assured on Death: The higher of the Basic SA () or 7 times the Annualized Premium.
  • Accrued Bonuses: 10 years of accumulated Simple Reversionary Bonus + FAB (if applicable).
  • The Safety Floor: LIC ensures that this total death claim is never less than 105% of the total premiums paid up to the date of death.

💡 JBB Insight: For Industry Leaders, it is vital to explain to clients that this payout is backed by the Sovereign Guarantee, ensuring that the family's "Protection Shield" is absolute and unbreakable.

Loan, Surrender, and Revival Rules in

Since Plan 914 is now a "legacy" product, servicing is more important than sales. JBB strongly suggests agents keep a close watch on the following liquidity and recovery rules to help clients during financial crunches.

1. Loan and Paid-up Value

Under the revised norms, a policy acquires a "Surrender Value" and becomes eligible for a Loan after premiums have been paid for at least 2 full years. This is a significant improvement over older plans that required 3 years of premium history.

2. The 5-Year Revival Window

If a policyholder stopped paying premiums, the policy lapses. However, the Revival period is quite generous. You can revive a lapsed Plan 914 policy within 5 consecutive years from the date of the First Unpaid Premium (FUP), subject to health requirements and payment of interest.

💡 JBB Insight: For policies nearing their 5-year lapse limit in , agents should proactively reach out to clients to protect their Sovereign Guarantee under Section 37 of the LIC Act.

Download LIC Plan 914 Official Circular (CO/PD/128)

At Jeevan Bima Bazaar (JBB), we believe in providing information backed by official data. For the benefit of our Life Insurance Industry Leaders (Agents, CLIA, and DOs) and technical researchers, we are providing access to the original technical circular for LIC Plan 914.

This document contains the comprehensive underwriting rules, bonus application methods, and the legal framework established by LIC of India following the IRDAI 2019 regulations.

Why should you read the Technical Circular?

  • Precision: Understand the exact calculation for "Sum Assured on Death."
  • Guidelines: Review the specific medical and non-medical underwriting limits for this plan.
  • Clarity: Get the final word on Section 37 Sovereign Guarantee applications.
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Receiving Claims in Instalments (Settlement Option)

One of the most strategic features of Plan 914 is the Settlement Option. Instead of taking a massive lump sum, the policyholder (for maturity) or the nominee (for death claim) can choose to receive the money in instalments.

  • Available Periods: 5, 10, or 15 years.
  • Mode: Monthly, Quarterly, Half-yearly, or yearly.
  • Benefit: This ensures a steady Income Stream for the family rather than a one-time windfall that might be mismanaged.

Case Study: Mr. Rajesh's Financial Journey

To understand the practical application, let’s look at a scenario involving Mr. Rajesh, a 30-year-old professional who purchased Plan 914 in 2021.

  • Sum Assured:
  • Term: 25 Years
  • Annual Premium: Approx. ₹40,000

Scenario A: Maturity in 2046

If Mr. Rajesh pays all premiums, at age 55, he will receive the ₹10 Lakhs Sum Assured plus 25 years of accumulated bonuses. JBB’s analysis suggests that with an average bonus rate, his total payout could be significantly higher than his total investment, providing a tax-free corpus under Section 10(10D).

Scenario B: Emergency Loan in

If Mr. Rajesh faces a medical emergency this year, he can apply for a loan. Since he has completed 4 years of premiums, he is eligible for up to 90% of the Surrender Value (for in-force policies).

Pros and Cons of LIC Plan 914

Advantages

  • Sovereign Guarantee: Being an LIC product, the Sum Assured and Bonuses are guaranteed by the Government of India under Section 37 of the LIC Act.
  • Tax Efficiency: Premiums are exempt under Section 80C, and the maturity is tax-free under Section 10(10D).
  • Bonus Participation: As a participating plan, it offers the potential for Compound Growth through reversionary bonuses.

Disadvantages

  • Inflation Risk: Being a traditional plan, the ROI may not always beat high inflation compared to equity-linked products.
  • Surrender Loss: If you exit the policy before 2 years, you receive zero returns.

FAQ: Frequently Asked Questions

No, LIC Plan 914 was withdrawn from the market on 1st October 2024. New investors can look at LIC Plan 914 Replacement options like Plan 945 or other current endowment products.

For Yearly, Half-yearly, and Quarterly modes, a grace period of 30 days is allowed. For Monthly mode, the grace period is 15 days.

Yes, if you opted for them at the start or during the term (subject to rules), riders like Accidental Death and Disability Benefit, Term Assurance Rider, and Critical Illness Rider are available to enhance protection.

It is the highest of:

  • Basic Sum Assured.
  • 7 times the annualized premium.
  • 105% of all premiums paid till death.

The policy will not terminate but will continue as a Paid-up Policy with a reduced Sum Assured proportional to the number of premiums paid.

Conclusion:

Understanding the technicalities of LIC Plan 914 ensures you maximize your policy's potential. Whether it is leveraging the loan facility or opting for the settlement option, being informed is your best financial asset. This article is part of our 'LIC Legacy Plans Directory'. You can click here to view the complete Index of LIC Discontinued Plans.

What's Next? The history of LIC's endowment plans is vast. In the next part of this series, we travel further back in time to explore the policies that paved the way for Plan 914. Click the Next button below to uncover the older version and its unique rules.

Disclaimer:This article is for informational purposes only. Please consult an LIC official or a financial advisor before making any decisions.