Life Insurance Corporation of India is also called LIC. The company is a state-owned insurance and investment group that has it is headquartered in Mumbai.
Life Insurance Corporation is the biggest insurance provider in India that has an estimated asset value of Rs.2, 529, 390 Crore (US $350 billion) in the year 2016.
The organization was established in the year 1956 when the Indian Parliament passed an act with the name of Life Insurance of India Act.
In this act, the private insurance industry in India was nationalized. To accomplish this, approximately 245 insurance providers along with the provident societies were merged to create the state-owned Life Insurance Corporation (LIC).
LIC Single Premium Endowment Plan
LIC single premium plan in which the insured has to pay one premium in the initial of the plan. The plan gives a sum assured to the dependent, and in case the policyholder survives he also gets a lump sum amount. You will get insurance coverage plus a return on the investment under an umbrella if you opt for this plan.
LIC is one of the most renowned Indian state-owned insurance groups, which comes with various insurance plans to cater to the needs of the people. LIC single premium endowment plan is one of them. It comes with insurance coverage and a guaranteed return at the time of maturity.
For people who have money and are looking for the best life insurance plans, then LIC single premium plan is a preferable option for them. Along with the coverage, you will get a better return on the investment. Let’s dive into the details to show you why this plan is the best choice for you.
How does the LIC Single Premium Endowment Plan work?
The working principle of this plan is very simple. A person needs to choose the term of the policy, tenure period, and premium as per his requirement and affordability. Once the policy is active, the policyholder will get the sum assured at the time of maturity period, or in case he dies, the dependent will get it along with some death benefits.
Key Features of LIC Single Premium Endowment Plan
- The premium under this LIC endowment plan is to be made at the start of the plan as a lump sum one-time payment.
- The LIC Single Premium endowment policy fetches coverage against untimely demise and also guarantees investment returns upon maturity.
- At the end of the policy term, upon the survival of the policyholder, the entire sum is assured amount. along with accrued bonuses per the prevailing rates will be paid together.
- This single premium endowment plan offers a simple reversionary bonus and a final bonus.
- The policy term ranges from 10 years to 25 years with a minimum sum assured of Rs.50,000. Sum assured above this minimum limit increase in multiples of Rs.5,000.
- Persons aged above 90 days to a maximum of 65 years are eligible to avail of this policy. If policy. the holder is less than 8 years of age, then the risk coverage will start after 2 years or immediately after the policyholder turns 8 years of age.
Benefits of LIC Single Premium Endowment Plan
1. Death Benefit
The total sum assured amount along with the vested reversionary bonus and final additional bonus if any will be paid out to the nominee of the policy. If a death has occurred before the start of risk coverage, only the single premium amount excluding service tax will be returned.
2. Maturity Benefit
The total sum assured along with the reversionary bonus and final bonus if applicable will be disbursed as the policy terminates. The reversionary bonus is declared each year by the LIC as a certain percentage of the sum assured. The final additional bonus can be declared at the end of the LIC endowment plan policy tenure. It is a form of additional reward given out by LIC, provided all premiums are paid on time.
3. Discount
Discounts are offered for policyholders who opt for a higher sum assured amount. It is based on the sum assured chosen by you
4. Loan Facility
You can take a loan against this plan after the finish of the first year during the policy tenure
5. Income Tax Benefit
Under Section 80 C, you can claim for tax deduction for the premium paid towards the LIC endowment plan.
6. Guaranteed Surrender Value
If the policy is surrendered within the first year of the policy term, policyholders will receive 70% of the premiums and if it is surrendered from the second year onwards, 90% of the premium is paid back. The policyholders are also eligible to get a certain amount of the reversionary bonus as well, depending on the terms and conditions
Advantages of LIC Single Premium Endowment Plan
- LIC Endowment plans offer security and guaranteed returns providing the double benefit of insurance and savings
- The LIC endowment plan under a single premium policy, lets you enjoy coverage for a single premium payment
- Your policy is bought and paid in one go. You will not have to worry about missing out on payments and policy lapses
- For those with a lump sum amount to invest, the LIC endowment plan will ensure that the money is used exactly according to your plan. Instead of spending it off for other expenses, your excess money will be secured as a good investment
- Get life coverage, maturity benefits, and tax benefits all under a LIC Single Premium Endowment Plan.
Eligibility Criteria to Purchase LIC Single Premium Endowment Plan
Below we have mentioned the eligibility criteria of the LIC best endowment plan:
- The entry age to opt for this plan is a minimum of 90 days and a maximum of 65 years.
- The maturity age for this plan is a minimum of 18 years and a maximum of 75 years.
- There is no limit to the sum assured. The higher you take premium the better return you will get.
- This single premium endowment plan’s minimum term age is 10 years and the maximum of 25 years.
Premium details of LIC Single Premium Endowment Plan
If you are thinking of buying an LIC single premium plan then you should know the premium calculation and the impact of age on it and how much sum assured you will get at the end of the maturity period.
| Age | Sum assured= 50,000 | Sum assured = 1 Lakh | Sum assured = 2 Lakh |
| 30 years | 27368 | 52935 | 104470 |
| 40 years | 27888 | 53975 | 106550 |
| 50 years | 29166 | 56535 | 111670 |
LIC Single Premium Endowment Plan- Exclusion
Below we have mentioned LIC’s best endowment plan exclusion:
Suicide: In case, a policyholder die case is a suicide the company will not give death benefits to the dependent within one year from the active date of the policy. Only 90% of the single premium is paid to the dependent.
Required Documents for Buying the LIC Single Premium Endowment Plan
If you opt for the single premium endowment plan you have to arrange the documents that we have mentioned below:
- Documents that show you accurate medical history.
- Documents that identify your identity.
- Address proof.
- And KYC documents.
LIC Single Premium Endowment Plan – FAQ’s
Explain what is LIC Single Premium Endowment Plan.
A single premium endowment plan of LIC is designed to offer you a better return on the investment to your dependent in case you die. If you survive you will get a sum assured that makes your life financially stable.
What are the advantages of the LIC Single Premium Plan?
- You will get insurance coverage and an investment vehicle in this LIC single premium plan.
- You can also take a loan to activate this LIC single premium policy.
- Flexible premium rates.
Why does one avail of this LIC Single Premium Endowment Policy?
This LIC single premium plan lets you live a hassle-free life. And your dependent will live in case you die.
Is tax benefit available?
As per section 10 (10D), you can get the benefits of tax under this policy.
Do I avail of the request online?
Yes, you can avail of the request for this policy online by filling form and submitting documents.
