LIC New Endowment Plus Plan 735 Calculator: Fund Value, Charges, Returns & Benefits

What is LIC New Endowment Plus Plan 735?

LIC New Endowment Plus Plan 735 is a unit-linked, non-participating, individual life insurance plan. It combines two things in one policy:

• Investment: after charges, your premium buys units in a fund you choose. The value of those units moves with the market.
• Protection: the life assured is covered for a basic sum assured of 10 times the annual premium.

Unlike a traditional endowment plan, there are no bonuses and no guaranteed maturity amount. You take the investment risk, and in return you get transparency: you can see your units, NAV and charges every year.

Plan 735 was the last version of LIC’s New Endowment Plus. It followed Plan 935 (2020) and Plan 835 (2015), and kept the same simple design. LIC withdrew it for new sales in FY 2025-26; existing policies continue as normal. New buyers can look at Index Plus 873 or SIIP 752. The calculator above projects your fund year by year so you can see how charges, cover and returns interact.

New Endowment Plus 735 at a glance

Feature	Details
Plan number	735
Plan type	Unit-linked, non-participating endowment
Premium payment	Regular, for the full policy term
Policy term	10 to 20 years
Basic sum assured	10 × annualised premium
Minimum premium	₹20,000 yearly, ₹13,000 half-yearly, ₹8,000 quarterly, ₹3,000 monthly (NACH)
Funds	Bond, Secured, Balanced, Growth
Lock-in	5 years
Partial withdrawal	After the fifth policy year
Bonus	None (non-participating)
Grace period	30 days (15 days for monthly)
Status	Withdrawn for new sales (FY 2025-26); existing policies continue

Eligibility

Condition	Limit
Minimum entry age	90 days (completed)
Maximum entry age	50 years (nearest birthday)
Minimum maturity age	18 years (completed)
Maximum maturity age	60 years (nearest birthday)
Policy term	10 to 20 years

Because maturity age is capped at 60, a 45-year-old can choose at most a 15-year term, and a 50-year-old at most 10 years. For a child, the term must be long enough for the policy to mature at 18 or later.

How the fund value is calculated

A ULIP projection has more moving parts than a traditional premium chart. The calculator applies the plan’s charges year by year:

1. Premium allocation charge: 7.5% of the premium in year 1, 5% in years 2 to 5 and 3% from year 6. The rest buys units.
2. Policy administration charge: a small monthly deduction, capped in the early years and rising slowly after that.
3. Mortality charge: the cost of life cover, based on your age and the sum at risk (sum assured minus fund value). As the fund grows past the sum assured, this charge falls to zero.
4. Fund management charge: 0.70% of the fund a year, built into the NAV.
5. No GST: individual life policies, ULIPs included, are GST-exempt from 22 September 2025. Before that, 18% GST applied on these charges.

The expected return you enter is the gross fund return before these charges. The IRR in the results is your effective yearly return after all charges.

Worked example 1: monthly saver

A 30-year-old pays ₹5,000 a month (₹60,000 a year) for 20 years, a total of ₹12,00,000. Basic sum assured is ₹6,00,000.

Gross return	Fund value at maturity	IRR
4%	₹16,08,625	about 2.71%
8%	₹25,39,937	about 6.70%

Total charges over 20 years come to about ₹2,16,610 at 8%.

Worked example 2: yearly premium

A 30-year-old pays ₹50,000 a year for 15 years (₹7,50,000 in total) with ₹5,00,000 cover. The fund comes to about ₹12,80,383 at 8% (IRR about 6.43%) and ₹9,15,487 at 4%.

Tip: the IRR gap between gross and net return is the true cost of the plan. At 8% gross, you keep roughly 6.4% to 6.7% a year after charges in these examples. Use that net figure when you compare with other options.

Maturity benefit

On maturity LIC pays the unit fund value: units held × NAV on the maturity date. If you are in the Growth Fund, a market fall in the last year can cut the payout sharply. Switching to the Bond or Secured Fund two or three years before maturity is a simple way to protect what you have built.

Death benefit

If the life assured dies during the term, the nominee receives the highest of:

• the basic sum assured, less partial withdrawals made in the two years before death;
• the unit fund value;
• 105% of total premiums paid.

If death occurs before the risk commencement date on a child’s policy, only the fund value is paid. The calculator’s year-wise table shows the death benefit for each year of the policy.

Other benefits and options

• Fund choice and switching: Bond, Secured, Balanced and Growth funds, with switches allowed during the term.
• Partial withdrawal: after the fifth policy year, to meet planned expenses without closing the policy.
• Surrender: within the lock-in, the fund (less a discontinuance charge) moves to the discontinued policy fund and is paid after five years. After the lock-in, surrender pays the full fund value.
• Revival: a discontinued policy can be revived within the revival period allowed under the policy.

Tax benefits

• Premiums are deductible under Section 123 of the Income-tax Act, 2025 (earlier Section 80C) (old regime), up to ₹1.5 lakh a year.
• Maturity is exempt under Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)) only if your total annual ULIP premium across all policies is ₹2.5 lakh or less and the premium stays within 10% of the sum assured.
• Death benefits are tax-free for the nominee.

Who was Plan 735 suited to?

It suited people who:

• want market-linked growth and some life cover in one policy, with LIC’s servicing;
• can commit to paying for 10 to 20 years without breaking the lock-in;
• are comfortable reviewing and switching funds as they get closer to maturity.

It is not ideal if your main need is a large life cover. Cover is only 10 times the premium, so a separate term plan is cheaper for protection. Investors who want the lowest cost may also compare it with a direct mutual fund SIP using our ULIP plan calculator.

Since 735 is no longer sold, new buyers looking for a regular-premium LIC ULIP can look at Index Plus 873 or SIIP 752.

Plan 735 vs Plan 935

Plan 735 continues the design of 935: the same four funds, 10 to 20-year terms, cover of 10 times the annual premium and a five-year lock-in. Existing 935 policies are not converted and keep their original terms. With 735 withdrawn, new buyers choosing between LIC’s ULIPs can look at Index Plus 873 or LIC SIIP 752, which offer different cover and charge structures.

How to use this calculator

1. Enter the age of the life assured.
2. Pick the policy term. The calculator checks the maturity age limits for you.
3. Choose the premium mode and enter the annual premium.
4. Set an expected return, then compare 4% and 8%.
5. Read the fund value, IRR, charges and death benefit, and scroll the table for year-wise values. All figures are estimates; actual NAVs will differ.