LIC's Single Premium Endowment Plan

LIC's Single Premium Endowment Plan is a participating non-linked savings cum protection plan, where premium is paid in lump sum at the outset of the policy. This combination provides financial protection against death during the policy term with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.

Key Features of the LIC Single Premium Policy :

• The LIC single premium policy is a Single Premium Endowment Plan. The premium under this LIC single premium policy is paid at start of the plan as a lump sum
• The LIC single premium policy provides investment returns and protection against untimely demise
• This LIC single premium policy can be taken for anyone between 90 days to 65 years
• On survival till end of a policy tenure or on earlier death, the entire Sum Assured along with accrued Bonuses would be paid and the policy terminates
• This plan is suitable for people of all ages and social groups who hope to protect their families from a financial risk in their absence.
• Sum Assured under this LIC single premium policy starts from Rs. 50,000 and there is no upper limit on the amount. Any Sum Assured over and above the minimal amount will be in multiples of Rs. 5,000
• Minimum entry age is 90 days and the maximum is 65 years under this LIC single premium policy. If the insured is less than 8 years of age, then the risk cover under this plan will commence from earlier of 2 years after the start of a policy, or from the anniversary of the LIC single premium policy coinciding with or immediately following the date the person turns 8 years of age

Benefits of the LIC Single Premium Policy :

• Maturity Benefit: On survival of the Life Insured till the end of policy tenure, the Sum Assured along with simple Reversionary Bonus and Final Addition Bonus, if any, would be paid to the policyholder as Maturity Benefit and the policy terminates.
  • Simple Reversionary Bonus is generally declared each year as a percentage of Sum Assured under this LIC single premium policy. The bonus amounts in this plan do not increase the sum assured (being simple reversionary bonus and not compound reversionary bonus)
  • Final Addition Bonus may be declared at end of the LIC single premium policy tenure if a policyholder has paid all his or her premiums on time. It is a form of reward given by the company to holders of an LIC single premium policy
  • Death Benefit: If the Life Insured dies within the LIC single premium policy tenure:
    • Only the Single Premium paid would be paid to the nominee if the Life Insured dies before the commencement of risk
    • After risk commencement, the Sum Assured along accrued bonuses, if any would be paid as the Death Benefit
    • There is high sum assured discount available in this LIC single premium policy
    • Loan is available in this plan after the first policy year
    • Income tax benefit on premium paid as per Section 80C and on claims received as per Section 10(10D) of the Income Tax Act
    • The LIC single premium policy has a guaranteed surrender value. Policyholders will receive 70% of premium paid if the LIC single premium policy is surrendered within the first year, and 90% of single premium paid from the second year onwards. The insured are also eligible to receive a certain amount of the vested reversionary bonus

LIC Single Premium Policy Product Specification :

Details about Premium of LIC Single Premium Policy :

An individual looking to buy a LIC single premium policy should know various aspects of its premium calculation. For instance, they must know how premium changes based on different sum assured and according to age of the insured individual holding a LIC single premium policy, and what is sample premium for every increase of say Rs. 1000 in Sum Assured for different LIC single premium policy periods, and so on.

Sample Premium for Different Sum Assured for the LIC Single Premium Policy :

The annual premium is mentioned in Rupees for a Sum Assured of 1 Lakh and LIC single premium Policy Tenure of 20 years. Basic Premium is mentioned below (Tax not included)

Sample Premium Rates per Rs. 1000 Assured for the LIC Single Premium Policy :

The below table shows the sample premium rates for the LIC single premium policy for different tenures for every Rs. 1,000 of Sum Assured. The rates under the LIC single premium policy decrease for longer terms and show a slight increase for entry at higher ages.