LIC Single Premium Endowment Plan- Key Features and Benefits

Life Insurance Corporation of India is also called as LIC. The company is 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 (the US $350 billion) in the year 2016. The organization was established in the year 1956 when the Indian Parliament has 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 for creating the state-owned Life Insurance Corporation (LIC).

LIC Single Premium Endowment Plan

LIC single premium plan in which 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 return of the investment under an umbrella if you opt for this plan.

LIC is one of the most renowned Indian stated owned insurance groups, which come 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 guaranteed return at the time of maturity.

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 of the investment. Let’s dive into the details to show you why this plan is the best choice for you.

How does LIC Single Premium Endowment Plan Works?

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 policy holder will get the sum assured at the time of maturity period or in case if 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 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 guaranteed investment returns upon maturity.
  • At the end of the policy term, upon survival of the policy holder, the entire sum assured amount. along with accrued bonuses are per the prevailing rates will be paid together.
  • This single premium endowment plan offers simple reversionary bonus and 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 this policy. If policy. holder is less than 8 years of age, then the risk coverage will start after 2 years or immediately after the policy holder turns 8 years of age.

Benefits of LIC Single Premium Endowment Plan

Death Benefit

The total sum assured amount along with vested reversionary bonus and final additional bonus, if any will be paid out to the nominee of the policy. If death has occurred before the start of risk coverage, only the single premium amount excluding service tax will be returned.

Maturity Benefit

The total sum assured along with 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 sum assured. The final additional bonus can be declared at the end the LIC endowment plan policy tenure. It is a form of additional reward given out by LIC, provided if all premiums are paid in time.

Discount

Discounts are offered for policy holders who opt for higher sum assured amount. It is based on the sum assured chosen by you

Loan Facility

You can take a loan against this plan after the finish of the first year during the policy tenure

Income Tax Benefit

Under Section 80 C, you can claim for tax deduction for the premium paid towards the LIC endowment plan.

Guaranteed Surrender Value

If the policy is surrendered within the first year of the policy term, policy holders will receive 70% of premium and if it is surrendered from second year onwards, 90% of premium is paid back. The policy holders 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 double benefit of insurance and savings
  • The LIC endowment plan under 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, 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 benefit and tax benefit 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 minimum 90 days and maximum 65 years.
  • The maturity age for this plan is minimum 18 years and maximum 75 years.
  • There is no limit for the sum assured. The higher you take premium the better return you will get.
  • This single premium endowment plan minimum term age is 10 years and maximum 25 years.

Premium details of LIC Single Premium Endowment Plan

If you are thinking to buy 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 best endowment plan exclusion:

Suicide: In case, if a policyholder die case is suicide then company will not give death benefits to the dependent within a one year from the active date of the policy. Only 90% of the single premium is paid to the dependent.

Required Documents to 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 which show you accurate medical history.
  • Documents which identify your personal 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 of 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 LIC Single Premium Plan?

  • You will get an insurance coverage and investment vehicle in this LIC single premium plan.
  • You can also take a loan to active this LIC single premium policy.
  • Flexible premium rates.

Why one avail 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.

Does tax benefit is available?

As per the section 10 (10D) you can get the benefits of tax under this policy.

Do I avail the request online?

Yes, you can avail the request for this policy online by filling form and submitting documents.

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About FinanceGAB

Ajeet Sharma is a financial blogger and I am blogging since 2017. Financegab is a personal blog dedicated to personal finance. The main aim of this blog to help people to make well-informed financial decisions.
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