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Life Insurance Corporation of India, more popularly known as LIC, is the largest insurance company in India. The company was set up in 1956 through the Life Insurance of India Act by merging 154 Indian insurance companies, 16 non-Indian companies and 75 provident societies. The objective was to spread the reach of insurance products across the country and in the rural sector.
The company currently provides various life insurance products including term assurance plans, money back plans, endowment plans such as the LIC single premium policy we will discuss in detail on this page below, retirement solutions, unit linked insurance covers, group plans and rural plans, among others.
LIC has over 8 zonal offices, 113 divisional offices and 2048 branch offices, besides numerous satellite offices spread across India. It has also tied up with banks and other service providers for collection of premium and provision of other services in the country. LIC is headquartered in Mumbai.
Endowment insurance plans provide a cover against risk and offer guaranteed returns that generally include return of sum assured and bonus amounts that may be declared every year (called reversionary bonus) and at of the policy term (called terminal bonus). A policyholder can select the amount of cover they want, depending on a policy’s particulars, and for a period that suits them. Most endowment policies are available for longer terms as they help increase the overall returns that a person will get back at the end of the policy tenure. Additionally, plans such as the LIC single premium policy offer considerable rebates on premium if an investor decides on a higher sum assured.
Endowment plans are a popular investment tool as they provide assured returns to an investor and an insurance cover at the same time. Endowment policies provide tax benefits under the Indian Income Tax Act. An endowment plan may also have riders that increase the amount of cover that a policyholder has by protecting him or her from risks that are not covered under the main policy.
Advantages of Endowment Policy
As the name suggests, LIC’s Single Premium Endowment Plan is a Single Premium Participating Endowment Plan. Thus, it is a traditional endowment with death and maturity benefits along with bonus facility.
Key Features of the LIC Single Premium Policy
Benefits of the LIC Single Premium Policy
LIC Single Premium Policy Product Specification:
|
|
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 |
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)
|
Age |
Rs 50,000 Sum Assured |
Rs 1 Lac Sum Assured |
Rs 2 Lacs Sum Assured |
|
30 Years |
27368 |
52935 |
104470 |
|
40 Years |
27888 |
53975 |
106550 |
|
50 Years |
29168 |
56535 |
111670 |
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.
|
Age (Nearest birthday) |
Term |
||
|
10 Years |
15 Years |
25 Years |
|
|
10 |
756.90 |
640.30 |
463.10 |
|
20 |
757.60 |
641.55 |
465.85 |
|
30 |
757.95 |
642.60 |
470.90 |
|
40 |
759.75 |
647.65 |
488.35 |
|
50 |
766.05 |
662.25 |
527.35 |
|
60 |
777.50 |
688.60 |
- |
Rebates for LIC Single Premium Policy
The LIC single premium policy offers discounts for higher sum assured. This helps the individual to get a higher cover for the payment of a smaller premium.
|
Sum Assured (Rs.) |
Rebate (in 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 |
Inclusions under LIC Single Premium Policy
Loan is available in this plan after the first policy year
Exclusions under LIC Single Premium Policy
In case of suicide committed within 12 months of policy inception only 90% of the single premium paid are returned to the nominee.
Documents Required
Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof, Identity proof (Aadhar Card, Passport & PAN Card) and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person taking up the LIC single premium policy.
Q. What is an LIC single premium policy?
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 policy?
The Single Premium Endowment Plan is ideal for people who have some amount and 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 to 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 an LIC single premium policy?
The LIC single premium policy offers various practical benefits, viz.,
