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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