Default-scenario numbers assume a 30-year-old buying
₹5 lakh
sum assured at the latest declared bonus rate. Use each plan's calculator
to model your own inputs.
Our Take, Side by Side
LIC New Endowment
LIC New Endowment Plan (Plan 714) is the directly selling version of LIC's flagship regular-pay endowment, relaunched in October 2024 under revised IRDAI norms (replacing Plan 914). For a 30-year-old buying ₹5 lakh sum assured over 20 years, the annualised XIRR at current SRB of ₹42/₹1,000 SA/yr and FAB ≈ ₹70/₹1,000 SA at 20 yrs (rising sharply to ₹450 at 25 yrs) works out to approximately 5–6% — modestly ahead of a savings account, with maturity proceeds tax-free under §10(10D) and premiums qualifying for §80C. The seven-times annualised-premium death-benefit floor (down from 10× in the older 914) means the 10% SA rule for 10(10D) is easier to meet. Bonus rates are not contractually guaranteed.
LIC Jeevan Labh
LIC Jeevan Labh (Plan 736) is a limited-pay endowment policy with terms of 16, 21, or 25 years and premium-paying terms of 10, 15, or 16 years. As of 2026, its declared simple reversionary bonus is approximately ₹37 per ₹1,000 sum assured per year for the 21-year term (col2 of LIC's 3-band table for SA ₹5L–<₹10L), plus a plan-specific final additional bonus of roughly ₹20 per ₹1,000 SA at 16 years, ₹80 at 21 years, and ₹250 at 25 years (FAB is a one-time maturity payout, not annual). Note this FAB ladder is meaningfully smaller than the standard endowment ladder used by Plan 714 — a common source of over-projection. The implicit XIRR for a 30-year-old buying ₹5 lakh sum assured for 21 years (15-year PPT) works out to roughly 5.5–6% — modestly above a fixed deposit, with the upside that maturity proceeds are tax-free under §10(10D) and premiums qualify for §80C. Bonus rates are not guaranteed for the future, so the actual yield can be lower.