Best LIC Plan for Safe Long-Term Corpus (Plan 714 Explained)

Published on May 5, 2026 • 6 min

LIC Plan 714 maturity example with bonus and FAB

Best LIC Plan for Safe Long-Term Corpus

Many people save money regularly, but still fail to build a strong corpus. The main reason is lack of proper planning and choosing the wrong financial products.

Goal: Build a safe and predictable long-term corpus with minimum risk.

What is LIC Plan 714?

LIC Plan 714 is a traditional endowment plan that offers:

Life insurance cover
Savings with a structured payout
Bonus and Final Additional Bonus (FAB)

Why Plan 714 is Good for Long-Term Corpus

1. Low Premium, Good Coverage

You can take a decent sum assured with a relatively low premium. This helps in continuing the policy for the long term.

2. Predictable Bonus

LIC bonuses follow a consistent trend. Based on historical data from older plans like Table 14, 814 and 914, bonus patterns are fairly stable and predictable.

3. Predictable Final Additional Bonus (FAB)

FAB plays an important role in maturity value. Since historical data is available, it can be estimated with reasonable accuracy.

4. Long Duration (Up to 35 Years)

A longer policy term allows better accumulation. Over time, this helps in building a large corpus.

Real Example

Sum Assured: ₹10,00,000
Age: 25 years
Policy Term: 35 years
Yearly Premium: ₹26,184
Total Premium Paid: ₹9,16,440

Maturity Details:

Basic Sum Assured: ₹10,00,000
Bonus (Approx): ₹15,75,000
Final Additional Bonus (Approx): ₹23,00,000

Total Maturity Value: ₹48,75,000

How LIC Builds Corpus

Bonus is declared every year
It accumulates over time
The total amount is paid at maturity

Returns Reality

The expected return is usually around 5% to 6%.

Note: Returns are moderate but stable and risk-free.

Stability
No market risk
Peace of mind

Diversification Strategy

It is always better not to depend on a single investment type.

LIC
Safety + Stability

Equity / Mutual Funds
Growth

Who Should Buy This Plan?

Conservative investors
Salaried individuals
People who want disciplined savings
Long-term planners

Who Should Avoid This?

People looking for high returns
Short-term investors
Market-focused investors

Advantages

Safe and predictable returns
Life insurance cover
Tax benefits under 80C and 10(10D)
Long-term wealth building

Limitations

Returns are lower than mutual funds
Long lock-in period
Limited liquidity

Final Verdict

LIC Plan 714 is not a high-return investment, but it is one of the most reliable options for building a safe and predictable long-term corpus.

If your priority is stability, discipline and long-term planning, this plan can be a suitable choice.

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