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LIC Single Premium Endowment Plan
LIC Single Premium Endowment Plan is a single premium participating insurance policy that combines death benefits, maturity benefits, and bonuses. It provides risk cover and assured returns, including the sum assured and annual reversionary bonuses.
Tax saving under Sec 80C & 10(10D)^
Guaranteed maturity with life cover for securing family's future
Sovereign guarantee as per Sec 37 of LIC Act
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LIC Single Premium Endowment Plan-An Overview
The LIC Single Premium Endowment Plan is a life insurance policy offered by the LIC of India that offers both protection and savings benefits. It requires a one-time premium payment and provides a lump sum payment upon maturity or in case of the insured's unfortunate demise during the policy term. Additionally, the plan allows for loans against the policy after completion of one year, with the loan amount being 90% of the surrender value. This plan aims to provide financial security to the insured and their family, combining insurance coverage with a savings component for future financial goals.
LIC Single Premium Endowment Policy Features
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The premium under this LIC single premium policy is paid as a lump sum at the plan's start.
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This LIC one-time investment plan provides returns and protection against the untimely demise
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This policy can be taken for anyone between 90 days to 65 years
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On survival till the end of a policy tenure or on earlier death, the entire Sum Assured, along with accrued Bonuses, will be paid, and the policy terminates
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This policy participates in the profits of LIC and offers a simple Reversionary Bonus and Final Additional Bonus if any
Eligibility Criteria Of LIC Single Premium Endowment Plan
| Parameters | Minimum | Maximum |
| Entry Age (Last Birthday) | 90 days | 65 years |
| Maturity Age (Last Birthday) | 18 years | 75 years |
| Policy Term (PT) in years | 10 years | 25 years |
| Premium Paying Term (PPT) in years |
Single |
|
| Premium Paying Frequency |
Single |
|
| Sum Assured | Rs. 50,000 | No Limit |
Benefits of LIC Single Premium Endowment Plan
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Death Benefit: If the policyholder dies within the policy tenure:
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Only the Single Premium will be paid to the nominee if the Life Insured dies before the commencement of risk.
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After risk commencement, the Sum Assured and accrued bonuses, if any, would be paid as the Death Benefit.
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Maturity Benefit: On survival of the policyholder till the end of the policy tenure, the Sum Assured, along with a simple Reversionary Bonus and Final Addition Bonus, if any, would be paid to the policyholder as Maturity Benefit, and the policy terminates
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Policy Loan: A policy loan can be obtained under this plan after one full year of the policy being in force. The loan amount will be 90% of the surrender value when the loan is approved.
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Surrender Value: The LIC single premium policy has a guaranteed surrender value. Policyholders will receive 70% of the premium paid if the LIC single premium endowment policy is surrendered within the first year and 90% of the single premium paid from the second year onwards. The insured are also eligible to receive a certain amount of the vested reversionary bonus
Sample Premium Illustration for LIC Single Premium Endowment Plan
An individual looking to buy an LIC single premium endowment policy should know various aspects of its premium calculation. For instance, they must know how the premium changes based on the different sum assured and according to the age of the insured individual holding the policy, what the sample premium is for every increase of, say, Rs. 1000 in Sum Assured for different policy periods, and so on.
The LIC one-time investment policy annual premium is mentioned in Rupees for a Sum Assured of 1 Lakh and a policy Tenure of 20 years. Basic Premium is mentioned below (Tax not included)
| Age | Rs 50,000
Sum Assured |
Rs 1 Lakh
Sum Assured |
Rs 2 Lakh
Sum Assured |
| 30 Years | 27368 | 52935 | 104470 |
| 40 Years | 27888 | 53975 | 106550 |
| 50 Years | 29168 | 56535 | 111670 |
Policy Details of LIC Single Premium Endowment Plan
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Grace Period: Not applicable as there is no need for further premium payment under a LIC single premium endowment policy.
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Policy Termination or Surrender Benefit under the LIC single premium policy: The Surrender Benefit is available under this plan:
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Within the first year: 70% of the Single premium paid, excluding taxes and extra premium, if any
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From the 2nd year onwards, 90% of the Single premium paid, excluding taxes, extra premium, if any, and all survival benefits paid earlier.
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Surrender benefit of bonuses: Policyholders will also receive a surrender value of any vested simple reversionary bonuses under the policy. The surrender value of these bonuses will be arrived at by multiplying them with the surrender value factor for vested bonuses. These factors depend on the term of the LIC single premium endowment policy and the year in which the plan is surrendered by an insured.
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Free Look Period: If you are not pleased with the coverage and terms and conditions of the LIC single premium policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.
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Rebates for LIC Single Premium Endowment Policy : The policy offers discounts for a higher sum assured, helping the individual get more coverage for a lower premium.
| Sum Assured (Rs.) | Rebate (in the percentage of Sum Assured) |
| Rs. 50,000 to Rs. 95,000 | Nil |
| Rs. 1,00,000 to Rs. 1,95,000 | 18% of Sum Assured |
| Rs. 2,00,000 to Rs. 2,95,000 | 25% of Sum Assured |
| Rs. 3,00,000 and above | 30% of Sum Assured |
Exclusions under LIC Single Premium Endowment Policy
The policy will not be valid if the policyholder, whether in a sound mental state or not, commits suicide within 12 months from the start of coverage. In such an event, the company will pay an amount equal to the higher of either 90% of the Single Premium for the Base Policy (excluding taxes, additional premiums, and rider premiums except for term assurance rider premium, if any) or the Surrender Value as of the date of death. No other claims will be considered by the company under this policy.
In case of suicide committed within 12 months of policy inception, only 90% of the single premium paid is returned to the nominee.
LIC Resources
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LIC Online Services |
LIC Investment Plans |
LIC Other Plans |
FAQs
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Q. What is a LIC single premium or one-time investment policy?
A. The Single Premium Endowment Plan from LIC is an endowment plan that allows the investor to get both life cover and assured returns by paying a single premium. The insured does not have to worry about the policy lapsing or them being not eligible for reversionary and terminal bonuses due to non-payment of returns under this LIC single premium policy as they have already paid the same at the start of the plan. -
Q. Do I need this one-time investment policy?
A. The Single Premium Endowment Plan is ideal for people who have some amount in hand and are looking for options to safeguard the money and also get additional secured returns. Moreover, since this LIC single premium policy requires you to pay the premium only once, you do not have to worry about subsequent payment of premiums. Experts suggest conservative investors go for endowment plans like the LIC single premium policy as it offers better returns than the money staying in a bank or a fixed deposit. -
Q. What are the benefits of a LIC single premium endowment policy?
A. The LIC single premium policy offers various practical benefits, viz.,- You get an investment vehicle and insurance cover through a single instrument. You do not have to worry about protecting your loved ones if you are not there to take care of them in the future. The LIC single premium policy has a maximum entry age of 65 years and a maximum maturity age of 75 years. This implies that your family will remain financially secure even you are not there with them
- Single premium of the LIC single premium policy takes away the hassles of regular premium payment. You do not have to worry about paying the premium in later months or years. Once paid, you are secure
- You can take a loan against your LIC single premium policy after only one year of taking the plan
- An LIC single premium policy lets you opt for additional riders such as the Accident Benefit Rider and Critical Illness Rider by paying small additional premiums. This increases your risk cover quite significantly
- You benefit from tax deductions under Section 80C of the Indian Income Tax Act. You are also eligible to tax benefits from claims received on a LIC single premium policy under section 10(10D), subject to certain terms and conditions of the IT Act
- An LIC single premium policy offers guaranteed surrender value. As a policyholder, you will receive 70% of the premium paid if your LIC single premium policy is surrendered within 1 year and 90% of your single premium paid if surrendered any time after 1 year and before maturity
- You are also eligible to receive a vested reversionary bonus even on surrender
Different types of Plans
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
++Returns are 10 years returns of Nifty 100 Index benchmark
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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