LIC’s new plans 2014-New Endowment Plan (No.814)

Today LIC launched one more new plan which is the new version of the old Endowment Plan (No.14). As this is the new version of existing plan, I am just updating the changes.

LIC's New Endowment Plan

So what is new to customers?

Apart from surrender, death benefit and loan changes, I don’t think any major changes. Premium table is not yet available. So it is premature whether this new plan is cheaper or not. But as it is traditional plan and only revamped to match the new IRDA guidelines, I am maintaining the status quo of recommendation “STAY AWAY”.


137 Responses

  1. Hi sir,

    Myself Sampath. I am planning to take LIC’s new endowment Policy (No 814) with SA 7,50,000 INR with Yearly premium of 28,500 INR (Approx) with 25 Years Term. I have calculated and getting Returns on the Maturity as 6.12%. Have considered RA Bonus as 48 & Final Add Bonus as 50 (Assumed) – Advise me whether my calculation is correct?

    And I have few concerns and Doubts before taking this Policy. Need your advise.

    Already i have the following Investment options.

    1) HDFC Life Term Insurance for 50 Lakhs
    2) Investing in Mutual Funds (Monthly 6K)
    3) Investing in PPF (Monthly 3K)
    4) Existing LIC money Back Policy (Yearly 6500 INR) – Maturing on 2027
    5) Existing LIC Endowment plan(14) 16 Years Term – (Yearly 10,000 INR) – Maturing on 2027
    6) Completed an Endowment plan in Maxlife – SA 1,50,000 – 6 Years Payable – Maturity after 20 Years – Life gain plus – Maturing on 2033
    7) Some small portion in Direct Equity


    Advise me some good option.


  2. Hello Sir,
    I need your assistance,
    My uncle wishes to purchase LIC New Endowment plan, his DOB is 06.07.1969. he is not at all convinced to but term insurance. Nowadays he is asking in HDFC life which one is good.

    Which one is good to buy… He wishes to avail till 75 of his age.

  3. Hello Sir,
    What’s the procedure to convert LIC New Endowment to Paid up policy after 3 Years ?

    I mean whom to meet and all…?

  4. I am in a great dilemma. Wish you could help me here.
    I have purchased New Endowment 814 plan in 2016 with SA 11,00,000 for 21 years and yearly premium of 50352. I have made payment for two premiums and my 3rd premium is due in June’18.
    I am in process of purchasing a 1Cr Aegon iterm Term insurance plan too.
    Questions here is, should I also continue with the LIC plan which I have bought or just forgot about it and start investing the same amount somewhere else like PPF/MF/ELSS.
    I wish,I could come across this article two years earlier. Decision would have been much simpler then. 🙁

  5. Hi,
    Under Rebate for higher SA:
    there is mention of 3% of BSA for >5L.
    Does this rebate mean for every premium there will be rebate of 3% in the payment of premium?

  6. dear sir,

    i want know policy details of New Endowment Policy Plan with example,like doc,death benifit ,death happened before doc after doc and what percentage amount to nominee


  7. Dear sir,

    I am 26 years old and have recently taken up the NEW LIC ENDOWMENT PLAN. My financial advisor says that on investing Rs. 2200 per month, 15 years down the line, I will get a return of Rs. 700000, half of which I will be able to withdraw and half which the company will pay post the age of 40 till the age of 90 or say 100. However, I feel I have taken a hasty decision, since I am unmarried and therefore have no responsibilities on my shoulder. Please advise me as to what I should do, in order to secure my future monetarily?

  8. Hi

    I would like to know if the below is true for the lic endowment table 814 are the below values are correct?
    Will I get 23Lakhs after 16 years if I invest 5K/month or 60K/ year ?

    Term maturity after 16 years MONTHLY 5000 MONTHLYpension after maturity
    2301300 900000 18698


  9. Hi
    I am planning that for an investment of 63K/ year for 16 years at the end of 16th year I am told that I would get around 23Lakhs as the maturity amount.
    All the other benefits like death benefits etc all stays the same.

    I am wondering if 23L is the assured sum which is projected can that be true or is there a misguidance ?

    Termmaturity MONTHLY 5000
    2301300 900000 18698


  10. I am 27 just bought 814 new endowment for 16 years with 2 lac sum assured. How much in total am I suppose to receive at the time of maturity? Any rough idea, sir?

    Thanks much for your help in advance!

  11. Sir,

    i have taken a policy table no. 814 on 12-04-2014, now i have already deposited 3 installment (half early) of Rs. 17,390/- each

    i have already enrolled a policy of LIC website, now when i am checked VESTED BONUS it’s showing ZERO

    my agent said LIC offer VESTED BONUS on this policy every year

    pls. advise, why VESTED BONUS showing is ZERO & which date LIC is declare bonus every year

  12. Hi!

    Pls advise which of the following plan is suitable :
    1) Plan 814
    2) Jeevan Anand
    3) Jevan Lakshya

    SA to be 1cr, and period of 34 years.My age is 41 years.

    If any other plan from above, pls suggest.


      1. I am 41 years old….have two children.

        The aim is to have a corpus of 4-6crores another 30 yrs down the line


          1. Hi!

            Please suggest an alternative plan. I can spare 4-5 lacs p.a, which was the requirement for these plans.


  13. I am planning to take this plan 814 for my father. His Age is 55 Years. Planning to take 5,00,000 cover with annual premium of 30K.
    After 20 year (at the age of 75), how much survival benefit we can expect from this plan. Please give me rough figure.

    For higher return with insurance at the age of 55, which other plan we can consider?
    Please advise. Thanks in advance.

  14. I have planning to go ahead with LIC’s new endowment plan for 16 years. My age is 43 years and my premium should be of 1,50,000 p.a., how much amount should I get by end of 16 years? Also in the event of death, how much will my nominee get? Agent also told me that all causes of deaths are covered (except Suicide), it this correct? He also said that by end of every year, I will get 10% of annual premium back, is it correct? Please guide.

    1. Vandana-Return will be around 5% to 6%. In case the death of policy holder then nominee receive SA+Bonus accrued as of date. Yes, all types of death covered. But he shared you wrong information about 10% premium back offer.

  15. Sir,

    LIC agent has given me a New policy NEW ENDOWMENT PLAN with profits in November, 2014. I have paid one annual premium amounting to Rs. 20180/- approx. I will not continue this policy in future. Kindly advice the procedure how I can surrender the policy at the earliest please. The LIC agent has not given any rebate of Annual Premimum.

    Rajinder Singh Bhatia
    Research Officer, Govt. of Haryana

    1. Rajinder-There is no surrender value if you paid less than 3 years of premium. Simple to stop is to forget this product and no need to pay furutre premiums. Giving or expecting a rebate in insurance industry is exactly like giving or expecting a bribe. So it is legally not correct.

      1. When your LIC agent comes for giving insurance to customer they misguided individuals. It is better not to open doors to them.
        Rajinder Singh Bhatia

  16. sir,

    1. Abubakkar-Life risk starts on the same day when LIC issues policy. No matter whether a day or two. So it is very much within rule. Your agent suggesting false information, because he don’t want this headache on him. Usually when policy holder dies within 3 years of taking new policy then such policies are called early claims. So LIC do a bit more scrutiny. That is the reason agent suggesting such false information. Contact branch immediately and submit the necessary documents. Orignal LIC Bond, Death Certificate and Claim Form (available with LIC branch). But for lengthy requirement of forms, contact LIC branch immediately.

      1. Sir maine 2014 me lic-814 wala karaya hu,mera age 24 hai or maine ye plan 21 yr ka lea hu,mera plan 33093 pr /yr,total amount 700000(21 * 33093) to sir after 21 yr mujhey return total amount kitna milega

  17. Hi,

    I had purchased this new endowment plan 814. My annual premium is 24000 and sum assured is 500000 for policy term 20 years. Can you tell what will be the matured amount ?

    I also want to know how can I insured myself so that in case of unexpected incidence my family wouldn’t suffer. And if I survive upto maturity it should return good value.

    Thanks in advance.

    1. Vishal-Why you purchased this policy? Returns from this policy will be around 5%. You can insure your life easily by purchasing online term plans. But such insurance policies not provide any return if you survive.

      1. Thanks for your reply, the agent was my friend so I trusted him and did what he said. Anyways nothing can be done with it. Can you please tell me some good term insurance plans whose settlement ratio is good enough. Because suppose if I died due to any reason then the cause of taking this insurance should full fill.

        One more thing does these online term insurance plan covers any kind of death(like from diseases, accidental, death by commiting suicides, murderd).

        Please let me know these also.

          1. Hi Basavaraj,

            I will take a term insurance plan. Do you have any idea about taking insurance policy to “paid-up zone” ? I have read some where that if in my case(Endowment plan), if I don’t want to loose money then I can pay premium for 3 years and then stop paying premium. In this case I will not loose any money and my policy will be taken to paid up zone. where I will get less benefits but at maturity I will get (Total premium paid + Bonus if any). What do you suggest about this ?

              1. I am talking about insurance which I had taked already(endowment plan : 814). Can I take this to paid up zone ?

                1. Will it be helpful. Can tell me one more thing that If I do so then how much money can I get after 20 yrs.

  18. Sir

    I read ur blog regularly……..and come to know my all future investments ruin my financial life…….will get return 6-7% only. Pls help me to invest in better plan

    I have lic Jeevan saral date of commencement 29sep 2010
    Can I surrender after 5 yrs…….will I get 100% paid premium I am paying 15312/qtly

    I have endowment plan 814….started on 25 July 2014…….after reading ur blog …come to know both r not good investments ……can I surender this pla also

    I have invest on these plan for my daughters future Jeevan saral for my first daughter …..814 for my second daughter

    With ur guidance my planning to take term insurance …….actually after my father death I had gone through vry bad time I don’t want same thing with my kids…..want to secure their future

    Even I don’t know M of mutual fund……no idea abt investment in mutual fund
    Can I mail u all my investments detail on ur email id [email protected]………so u can suggest better investment option for my future…..
    I want lumpsum amt 70-80lac after 20yrs
    Sorry for bothering you again n again but pls help me I am vry grateful to u.

  19. First let me give you some idea on my position:

    Earning : 5 Lakhs/ Annum
    Age : 26 year
    Loan : 50K/year (Only two installment left-2016 and 2017)

    I haven’t invested in any plan yet but seriously looking for 3 things now:

    1. Tax savings (2nd priority)
    2. Personal savings (1st priority)
    3. Life insurance benefits (3rd priority)

    I really don’t have idea on how to invest as very recently I have entered into Software industry.

    It would be very helpful if you advise me how to start investing, where and how much.

  20. Hi, I need your kind assistance in planning my financial life ahead. Salary 10lac/month. Right now I’m 32 year old with one SBI life policy (45k), ing money back policy (55k), Jeevan Anand policy (47k), 2 home loans (30+10k) emi. Plz suggest me for short term n long term investment with good return along with tax saving benefit.
    Thanks in advance.

  21. Hi,

    Found your blogs genuine.I appreciate your effort.
    I am Rahul from Odisha .i plan to invest 63000/- per annum in LIC NEW ENDOWMENT PLAN(814) FOR 30 YEARS.
    Sum assured is 20 lacs , and as per agent i would get maturity benefit of around 60 lacs(SA+BONUS+FINAL BONUS).
    i have taken a housing loan of 30 lacs which makes me take this plan as a insurance against loan .
    Initially i planned for Term Plan .However i found it a plain wastage of the paid premiums.
    What are your views o this .Do i have any other option.
    Kindly suggest.eagerly waiting for your reply .

    1. Rahul-First point to say is, your agent is claiming wrong maturity amount. He exaggerated the amount to tilt you towards this plan. So stay away from this. Second point is, you are buying insurance means think of what will happen to your dependents in case of your absent. Ideal insurance coverage should be 15-20 times of yearly income+any loan. So will be able to buy this much insurance from this plan by paying hefty premium? Think and decide. You move of saying term insurance premium is waste, is completely wrong concept.

      1. Sir,
        The agent says an endowment plan is a basic necessity, just like PPF, FDs etc.

        If i think of buying term insurance plan (15 -20 times of my basic salary) at some later stage, say after 5 years,that would not change the premium amount by a huge margin because it is annual premium(monthly increment in insignificant) .However If i delay buying this endowment plan , i may never be able to buy it in future.

        Kindly suggest, or are u saying that i should not go for endowment plan at all???.If not, then what is the alternative ,
        Best regards, Thanks for reply.

        1. Sir
          1)In the long term , Government will always have a tendency to lower the rate of interest from PPF , FDs , because it is a liability for them plus they may obtain the required money from FDI etc.How advisable is it then to invest money in these instruments.

          2)20 lakhs sum assured
          rupees 50(bonus)*2000(per thousand)*30(term)=30 lakhs
          400(likely future value)*2000=8 lakhs

          =58 lakhs .
          This is how i got the figure(close to 60 lakhs)

          3)Instruments like PPF etc are more liquifiable than insurance savings, so practically it may not be that easy to save rupees 1000/- for RD , or say , not be tempted to withdraw money from PPF,break FDs.

          Kindly suggest Sir, what should I do?

          1. Rahul-Nothing is constant or GUARANTEED. But based on your goal you need to invest. Do you feel the LIC will provide you the consistent Rs.50 bonus to you? Also have you calculated the return on investment for this Rs.20 lakh sum assured LIC?

        2. Rahul-Take my example. I am surviving without Endowment and PPF. So do you feel I am in danger zone? In what way agent claiming that it is basic necessity? Strange to hear. For your information if you delay any insurance (whether it is Endowment or Term Insurance) your Insurance cost will raise as you grow older. So first buy term plan. Nothing is universally proven that one must have this product or that product. So understand your requirement then choose a product based on that.

  22. Hi i need your help i have started a LIC endowment plan with annual premium of 32500 with tax 35 years term. i saw a maturity calculator showing for this amt i will get 60,00,000 lakhs amt . is that true.. now only i came to know that PPF is giving better returns than LIC.

    i started it on november 8 my 15 days is also got over. is it possible to get back the money in any way.
    what shall i do now
    i putting this for my retirement. feeling highly disappointed

  23. Hi Basavaraj,

    I have availed new end or entity policy from LIC, Annual premium is 44k, for the tenor of 20 years.
    my agency person told me I will get 17 Lacs sum assured amount, but in the policy agreement it has mentioned basic sum assured as 8 Lacs, when I asked him , he said I will get annual bonus for the premium which will give me 17 l he said…

    kindly clarify me , will I get the 17 l or the mentioned basic sum assured ..

    1. It’s new endowment policy with profit… also suggest me some of the other child education plan which will give me good returns for 20 years.

      kindly let me knw the plan name & the insurance company name

  24. Hi Basu,

    This is Manoj Tiwari from Mumbai , i have been looking out for good mutual fund or ELSS plan which will return me a good maturity amount. I am planning to invest minmum for 5 years with the aim of generating lump sum amount for buying a house. can you please suggest me which mutual fund i should invest and which will provide me good maturity amount after 5 years. i did inquired about SIP but they are not going to help me out as i need lump sum amount after 5 years..can you please help me out here.

    Many Thanks in advance.


      1. Hi Basu,

        Thanks for the above reply.

        If you can help me out with proper time lines and guidance that would be a great help to me. I said minimum 5 years , as i dont have much info about it. Please help me out with the fund names and term to invest in it.

        I am planning to invest around 8k to 10k per month into mutual funds. Please treat me as a fresher and advise, The above one liner is not helping me at all 🙁

        Appreciate your assistance

        Kind Regards

  25. Sir,

    I have just started New Endowment Plan (No- 814) of LIC, paid one quarterly premium Rs. 12294. My Annual premium comes Rs. 49176 for the premium paying term -15 years. The sum assured is Rs700000. At present my age is 37 years. At the age of 52, the policy would be matured.

    Actually, i have opted this policy for the investment purpose. Can u please guide me the approx amount, which i get from this policy on maturity?

    Thanks and regards,
    Amit Ghosh

  26. Some body suggest me about lic new endowment plan table 814 as child plan and as per the illustration it seems its giving more than 9% return per annum.

    Plz suggest me if it really give this much return or suggest me any other way to invest for my son future.

    1. Vinod-Please do share that illustration with us so that we can guide you in better way. The point to be understand is how a product which have high expense ratio may provide such decent return of 9%.

      1. Please find the shared policy details:

        Name : Vinod Singh
        Age : 31
        Sum Assured : 200000
        Term : 20/20
        Mode : Yearly

        Premium: 10,097
        At Maturity: 5,74,000

        As per my findingly LIC is giving 5-6% interest per anual not more than that. The above plan is giving around 9% interest. Please let me know if its correct or just mis guiding us.

        Pleaes let me know your email id so I can share complete illustration for the plan.

        Also suggest me any plan for my son (age 3 month) future saving.

        Thanks & Regards,

          1. I sent LIC New Endowment Plan illustration to your email id. Please let me know if its a correct illustration.

            Plz also give me your suggestion on Aviva Young Scholar Secure.


              1. Thanks for the reply Basu.

                Can you please suggest me any good plan for my son or any portfolio (MF / Equity) which will help me to generate a good fund for my child career.

                Thanks in advance.

                  1. Basu,

                    I have below plans:

                    1. LIC Jeevan Anand (SA – 500000, term – 20 years, 6 years completed)
                    2. ICICI Prudential Life Stage RP (SA – 300000, term – 15 years, 5 years
                    3. Birla Platinum Advantage Plan (SA – 300000, Term -10 year, paying term –
                    5 years, 4 years completed)
                    4. Medi Claim (for complete family cover provided by office)

                    Please let me know any good plan for my son or any portfolio (MF / Equity) which will help me to generate a good fund for my child career.

                    Thanks in advance.

              2. plzzz sir……..can u tell me …..for 8yrs child ….what is the premium?? ( plan -NEW ENDOWMENT PLAN TABLE NO.814

              3. Hi Basu,
                I want to invest in new endowment policy 814 for my daughter who is 23.
                My requirements: To get a good amount at the age of 48. So i can omly take 25 years term and yearly oremium 30,000 approx. This was the product suggested to me. It works out to 7.43% return plus tax free as well. Can i proceed with this. Please suggest.

                1. Gita-You commented saying that investing for your daughter. But do you feel it is a great investment decision which you yourself claiming return as 7.43%? When education and marriage cost raising at around 10%??

                  1. Hai basu thanks. Iam not planningnfor any high return with this 4l, for my daughter. I want to invest into something which will give her some big amount at the age of 48. 1. Mutual funds: icannot monitor; 2. I thought giving her atax free amount of 21 lak at her 48 th year will be helpful as she has entered her career only last year (doesnt come under tax bracket as of now) with these points in mind only l opted for this plan when i was suggested this. Am i right in choosing this because of these points?

                    1. Gita-I understood your concept. But do remember that a simple product called PPF will give you more safe return along with all the tax benefits of what LIC product provide you. If you don’t know about investing in mutual funds or monitoring them then the simple thing is to consider good adviser and invest under him. To be frank select a fund or two mutual funds, invest 80% to these funds and rest into PPF will work out wonders than relying on this product. Rest is left with you.

  27. Hello Basavaraj,

    My wife wants to invest in a plan which will give the benefit similar to a LIC’s Money Back – 20 years (Plan No. 820) or which is somewhat on the lines of Lic New Jeevan Anand…I am myself not convinced with both citing the IRR on both but it is very difficult to convince her. Can you suggest some investment avenue where these requirements can be met???


  28. Hi ,

    i am alread investing in new Bima gold policy 20K per year.

    now i am planning to invest 20K more to save Tax and get returns, i was thinking about Jeevan Anand or new Endowment plan.

    Can you please help me with this.


      1. Thank you for your responce…can you please advise me someting how i should invest this amout so i can get returns.

        i would like to have some issurance coverd for my famil in case of unfortunate incidence.

        Please provide me some option so i can go for it.

        Thanks Again.

        1. Abhijit-First buy a term plan to cover around 15-20 times of your yearly income. Rest you need to decide based on when you need money. Like short term goals means secured product and for long term, you can choose equity.

          1. i am looking for 8 to 10 year, but if there are some option in short term i wil be happy to go for as i can use that returns to buy house.

            Also i am looking for tax saving plan ..

            can you give me some option and recommend some option which i should opt for.


              1. Hi Basvraj,

                i can wait for 8 to 10 yrs and keep on investing at the same time i need option for tax saving.

                keeping this goal in mind , can you please help me out.


                1. Hi Basvraj,

                  Let me give you some idea on m expenses and saving that might give you idea .
                  i earn 10L/Annum . i am 28 yrs old

                  Falt: Loan 20 Lac Paying 20K/Month for 20 yrs
                  Money back Bima Goald: 20K/Annum from last 4 yrs.
                  PPF: 50K started this year.
                  Planning to buy term plan for 20 yrs which can give me more than 50L as per your earlier advise.

                  i really don’t have idea on how to invest in mutal fund and i need to save my income tax also . But i am intrested in mutual fund or equity

                  it woul be very helfull if you advise me how to start investing and where.


                2. Abhijit-Then my answer is-Term Insurance, PPF (around 30%), Bank FDs (20% as it’s maturity is only 5 years) and rest ELSS (once lock in of 3 years complete, you can continue with the same fund if it is performing well or divert to other funds) and EPF. Hope by these options your tax saving requirement will get fulfilled.

                  1. thank you Basvraj….i am sorry but really don’t know what is ELSS , can you please tell me what is this and how to invest in it.

                    Sorry for bothering you again and again but i really find your blogs helpfull and geniun.

                    1. thank you Basvaraj…i went through your blog and selected following 3 options i can ivest 30K per year on this, can you please see if these option looks ok to you and how much i should invest in each.

                      ICICI Prudential focused bluechip equity (G)
                      Franklin india Blue chip fund (G)
                      Reliance quity opportunity (G)

  29. Hello

    I’m looking for a LIC Policy and the agent has suggested me the plan New Endowment (Plan No. – 814). Is this the best policy and beneficial for me? As I’m looking for the long term, tax benefit, and good returns. I’m planning to invest 24,000 thousand per annum. Please suggest if you have some other plans as well.


    1. Sridhar-In my view it only fulfill your tax benefit and long term requirement. But it fails to give you good return over long period. Why can’t you opt for term plan and invest rest in simple product like PPF, which will give you more return and same tax benefit in long run?

      1. Thanks Basunivesh! I’m also investing in PPF. But here in this policy I am looking for the returns after the maturity of the plan. Can you please suggest some best plan in this regard? As you suggested one of the best plan LIC’s Jeevan Anand in your blog, can I go for it, does it suit my requirement?

        Once again thanks for your valuable suggestions!

        Sridhar K

        1. Sridhar-Whatever plan you consider from traditional category, your return will be around 7%. Hence Jeevan Anand is best only if you restrict your investment to around 15% to 20% of overall investable surplus. Otherwise it will ruin your financial life.

          1. OK Thanks Basunivesh. Let me tell you the actual thing, I didn’t invest in any of the policies or any other savings plan to save from the Tax deductions from my salary. All these 4 years, I was just paying the tax and didn’t save anything, since I do have some other commitments. Now I realized that I need to do some investment for the purpose of saving at least some amount of tax (not completely) and in return I should get returns after the maturity of the policy. So I request you to suggest me a good plan if any suit my requirement. Thanks for your kind replies.

            1. Sridhar-There are plenty of other options which are better than this plan. I don’t know what is prompting you to under insurance yourself and satisfying with low returns. Simple things are separate insurance from investment, start investing in PPF (for tax saving) or ELSS (mutual funds but for long term view) will generate better returns.

              1. For sure, I would be interested in mutual funds. Can you please share with me any link on your blog for the best mutual fund plans or do you have any plans which you can share with me. Thanks

  30. Hi Basavaraj Tonagatti

    can u please tell me in easy terms …
    e.g i wan to invest 40000 Annually till 21 years then how much i will get after 21 years..


  31. Hello Sir,

    I am insurance agent of THE ORIENTAL INSURANCE CO. LTD. & LIC OF INDIA.
    At present i sale most of JIVAN ANAND policy.

    Your site are really use full for saleing insurance product.

    I wish to start new business of providing loan from bank to needy persons, so how can i start my new business.?

    Please provide me guide lines.

    1. Hasit-Thanks for your comment. Bud sadly, I am not writing this blog to upgrade the business. Instead you are welcome to share your knowledge with all of us. Learn, share and you are always welcome.

  32. sir , can you please explain table no 817 -Endowment – single premium returns details .for example if am taking 1 lalkh sum assured . for 15 years

  33. Sir, In the light of new shedule of policies what is the position of Endowment assurance
    with profit with DAB . We having 2 policies of 5 lac.since last 2/13. These should keep continue or stop or any option. Please suggest. thanks ML Jha

  34. Hi…
    This is srinivas LIC advisor from Bangalore. Please wait upto this month end will get full details and also premium calculation, comparission of old product to new one, Benefits, Service tax impact, returns orianted questions and Mortality rates etc.

  35. You can have a look at premium table here:

    Unless I have really overlooked a major point all LIC agents who were saying LIC policy will be costly were right. Add 3.09% to the amount to get the premium. There are some rebates that you are already aware of but these rebates have been cut down compared to last year.
    I myself had speculated that premium will be cheaper hence stand corrected. I am still confused what happened to the new mortality table. I am waiting for details to trickle down to me on mortality table.

    We had already debated earlier I still maintain diversification is the key and I will not advice to totally “STAY AWAY”

    Last time I did not counter your 5-6% return assumption of LIC, please correct if you see anything wrong here.

    Sample: 30 year old sum assured Rs 500000/- , Term 25 years, Annual premium Rs 18900/-.

    Maturity value at today’s rate = Rs. 1325000/- (Bonus Rs 48/- per thousand and Final Additional Bonus Rs. 450/- per thousand.)

    RATE/IRR: 8%

    Use the Excel Function Rate like this =RATE([@Term],(-1*[@Premium]),0,[@[TOTAL Mat]])
    = RATE(25,-18900,0,1325000)

    Alternatively you can use IRR excel function you will get same result.

    1. Divya-Let us first come to know the clear picture about the premium table then we can discuss. Also one way or another way LIC is paying the service tax (before it was from LIC now from investor itself). So I don’t think it will impact to that extent and this additional payout from the investor will be reflected when return from LIC will be higher than the current. Coming to return what you calculated, based on your data it provides me 7.7%. Insurance premiums will always be paid in advance. So you start playing today and will end up till 25 years. But return will be in the beginning of 26th year. If done in this way, returns still hover around 7%. Investing for such long term (25 years) and being satisfied with less than 8%, still feel good? As you said earlier, we can treat it as a diversifying tool. But the question is, how many agents have skill to guide client about diversification?

          1. Hi,
            I am ganesh from chennai. I have planned to take new endowment policy 814 in LIC. I choose the options for yearly i will pay 69971 and agent told as like as after 15 yrs i will get 23,34,812. So I request you to send details and how much amt for maturity and this plan is how to based on calculation for maturity?. That agent said it is not based on share marketing. so this plan is good for future and surely i will get the maturity amount(ie 23.34.812).i am waiting for your favourable reply as soon as possible.


            1. Ganesh-Without knowing the SA and Term how can I arrive at the maturity value. Also if it is not participating in the market means how you decided that this plan is good? What if after 15 years this plan gives you just around 6% return?

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