LIC New Endowment Plan 914 Bonus Rate

LIC Bonus with New Endowment Plan (914)

LIC New Endowment Plan 914 (previously 814) offers the following core benefits to the life assured -

• The death benefit on the death of the life assured within the policy term plus bonuses

• Maturity benefits on surviving the whole policy term plus bonuses

This LIC policy offers the following types of bonuses - a simple reversionary bonus and a final additional bonus. These bonuses come from the profits earned by the company in a particular financial year. Since the company cannot predict the profits, bonuses that come from profit participation are not guaranteed.

At the end of every financial year ending 31st March, LIC undergoes a valuation based on which LIC bonus rates are declared. LIC bonus rate 2022 is yet to be declared by the LIC of India.

What Is The LIC New Endowment Plan Bonus Rate?

The latest LIC Bonus Rates 2020-21 as declared per valuation done for the financial year ended 31st March 2021, are as follows -

LIC Bonus Rate FY 2021 for LIC New Endowment Plan (814 & 914)

Historical LIC Bonus Rates for LIC New Endowment Plan 914

1. For sum assured less than or equal to Rs.1 Lakh

2. To sum assured more than Rs.1 Lakh

How Is The LIC Bonus Amount Calculated?

Based on the table above, if you choose a policy term of 12 years and your sum assured is Rs.3 lakhs, then for every Rs.1000 of the sum assured, LIC will add Rs.35 as a bonus. For Rs.3 lakhs, the total bonus amount will be 35 x (3,00,000/1000) = Rs.10,500. Over 12 years, the bonus will amount to Rs.1,26,000.

How to Calculate the Premium & Maturity Amount of LIC New Endowment Plan 914?

You can use the LIC New Endowment Plan 914 premium calculator to estimate the premiums before buying it. The premium amount has no bearing on the bonus amount. However, if you stop paying the premium at any point or surrender your policy, any applicable bonus shall stop accruing.

To calculate the maturity value, you can use the LIC New Endowment Plan 914 maturity amount calculator. Here is how you can calculate this policy’s maturity amount.

Assuming that you are a 30-year-old male looking to assure a sum of Rs.3 Lakhs for a policy term of 12 years. Using the LIC New Endowment Plan 914 premium calculator, the annual premium comes to be Rs.27,039.

The bonus comes out to be Rs.1,26,000. The final maturity value will be equal to the sum assured on maturity plus bonuses. This brings the total to Rs.(3,00,000 + 1,26,000) = Rs.4,26,000.

In Summary

The LIC New Endowment Plan 914 Bonus Rate for 2020-21 was declared as per the valuation done on 31st March 2021. These rates can be different next year, which is why it is important to remain updated throughout.