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Comparison between New Endowment (814) and Jeevan Pragati (838)

New endowment plan (814) and Jeevan Pragati (838) are basic endowment plans of LIC which are quite similar to each other except increasing life cover in case of Jeevan Pragati. This article presents comparison between these two plans with the help of an example. Before the example, following table describes the differences between eligibility and feature between the two plans.

Plan Eligibility & Features

Details New Endowment (814) Jeevan Pragati (838)
Age at Entry 8 Years (Completed) 12 Years (Completed)
Maximum Age at Entry 55 Nearest Birthday 45 Nearest Birthday
Maximum Maturity Age 75 Nearest Birthday 65 Nearest Birthday
Policy Term 12 to 35 Years 12 to 20 Years
Sum Assured 1,00,000 and above (in multiple of 5,000) 1,50,000 and above (in multiple of 10,000)
Loan & Surrender After 3 years of full premium payment After 3 years of full premium payment
Maturity Basic Sum Assured + Bonus + FAB Basic Sum Assured + Bonus + FAB
Death Claim Death Sum Assured+ Bonus + FAB Death Sum Assured + Bonus + FAB

Death Sum assured in case of New endowment plan (814) will be same as basic sum assured while it will increase every five in case of Jeevan Pragati (838) and the same has been explained in the death claim table.

Comparison with Example

To compare New Endowment and Jeevan Pragati plans, let's assume a person who is 28 year old buys these two plans with following details.
Sum Assured: Rs. 10,00,000
Policy Term: 20 Years
Policy Purchase Year: 2016
Age:
28 Years.

(To get comparison as per your Sum Assured, Age and Term, please use Premium and Maturity calculators)

To explain the comparison between above said two plans, tabular comparison of yearly premium & total paid premium, Maturity Amount and Year-wise & age-wise death benefits have been given below.

Premium Details

Premium Including Accidental Benefit Rider
Premium New Endowment (814) Jeevan Pragati (838)
Yearly Premium 49347 49013
Total Paid Premium 987820 981134

Second Year onward premium have been taken as yearly Premium.

Maturity Details (approx)

If policy holder survives the policy term ( i.e. 21 years ), Maturity will be as under.

Details New Endowment (814) Jeevan Pragati (838)
Sum Assured 1000000 1000000
Bonus 840000 840000
FAB 100000 100000
Total 1940000 1940000

The Bonus rate for plan 814 has been taken as Rs. 42 per thousand of sum assured per year as per last declared and FAB rate as Rs. 100 per thousand of sum assured. The bonus for 838 has been assured same as new endowment plan.

Death Claim Details (approx)

In case of death during policy term (Before 20 years), Death Sum Assured + Bonus + Final Addition Bonus as (Normal Life Cover or death claim) will be payable to nominee. In case of accidental death, additional amount equal to Sum Assured will be payable to nominee. Year-wise and Age-wise Normal Life Cover and Accidental Life Covers will be as follows.

How to Understand Following Table

Suppose if, unfortunate death of policy holder happens in year 2031 (at age 42), then Rs. 1739000 will be death claim amount in case of New Endowment Plan (814) and Rs. 2707000 death claim in case of Jeevan Pragati (838) plan.

Year Age Death Sum Assured Normal Life Cover Death Sum Assured Accidental Life Cover
2016 28 1000000 1044000 1000000 1042000
2017 29 1000000 1088000 1000000 1084000
2018 30 1000000 1132000 1000000 1126000
2019 31 1000000 1176000 1000000 1168000
2020 32 1000000 1220000 1000000 1210000
2021 33 1000000 1264000 1250000 1502000
2022 34 1000000 1308000 1250000 1544000
2023 35 1000000 1352000 1250000 1586000
2024 36 1000000 1396000 1250000 1628000
2025 37 1000000 1440000 1250000 1670000
2026 38 1000000 1484000 1500000 1962000
2027 39 1000000 1528000 1500000 2004000
2028 40 1000000 1572000 1500000 2046000
2029 41 1000000 1616000 1500000 2088000
2030 42 1000000 1690000 1500000 2160000
2031 43 1000000 1739000 2000000 2707000
2032 44 1000000 1793000 2000000 2759000
2033 45 1000000 1847000 2000000 2811000
2034 46 1000000 1926000 2000000 2888000
2035 47 1000000 1980000 2000000 2940000

As per above comparison, we can very well see that there is no big difference other than increasing life cover in case of Jeevan Pragati plan.

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