LIC Single Premium Endowment Plan

Read on to learn more about the single premium life insurance LIC offers just against a single premium.

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 protection and savings benefits. It requires a one-time premium payment and provides a lump sum or instalment 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 three months to address the liquidity needs. This LIC lump sum investment plan aims to provide financial security to the insured and their family, combining insurance coverage with a savings component for future financial goals.

Key Features of LIC Single Premium Endowment Policy 

• The premium under this LIC single premium policy is paid as a lump sum at the plan's start.

• It is an LIC lump sum investment plan offering protection and savings in a single premium payment.

• Policyholders have the flexibility to choose the protection period based on individual needs.

• This single premium life insurance LIC policy provides an option to receive the death/ maturity benefit amount in instalments instead of a lump sum.

• With a single LIC premium payment online, policyholders can get additional protection by opting for rider benefits.

• Attractive rebate is available for selecting a higher sum assured.

• Under this one time investment plan LIC provides a loan facility to address liquidity requirements.

• 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

Benefits of LIC Single Premium Endowment Plan

1. Death Benefit

   If the Life Assured dies after the commencement of risk but before maturity, the Death Benefit payable will be: 

   Sum Assured on Death + Vested Simple Reversionary Bonuses + Final Additional Bonus (if any).

   Here, Sum Assured on Death is defined as:

   If age at entry is below 50 years:

   The higher of:

   • Basic Sum Assured, or

   • 1.25 × Single Premium

   If age at entry is 50 years or above:

   The higher of:

   • Basic Sum Assured, or

   • 1.10 × Single Premium

   If age at entry is below 8 years (Minor Life Assured):
   If death occurs before the commencement of risk, the Death Benefit will be a refund of Single Premium paid (excluding taxes, extra premiums, and rider premiums), without interest.

2. 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

3. Participation in Profits

   LIC Single Premium Endowment Plan takes part in LIC’s profits. It earns Simple Reversionary Bonuses, depending on LIC’s performance. If the policy ends due to maturity or death, a Final (Additional) Bonus may also be added, as per LIC’s terms at that time. Bonus payouts under this LIC single premium LIC policy are based on LIC’s surplus and approved by the Central Government under the LIC Act, 1956.

4. Tax Benefits

   For this LIC one time investment plan, any taxes imposed by the Government of India will apply as per current tax laws and rates. The tax will be added to your one-time premium, including any extra or rider premiums. This tax amount is not counted when calculating the benefits of LIC single premium plans.

5. Options to Receive Final Payout in Instalments

   Under the Single Premium endowment plan, both maturity and death benefits can be received as instalments over 5, 10, or 15 years instead of a lump sum. The policyholder can choose this for full or part of the benefits. Instalment amounts can be fixed or a percentage of the total proceeds and are paid in advance at yearly, half-yearly, quarterly, or monthly intervals, subject to minimum amounts as following:

   Mode of Instalment  payment	Minimum instalment  Amount (Rs)
   Monthly	5,000
   Quarterly	15,000
   Half-Yearly	25,000
   Yearly	50,000

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 that even in the LIC single premium plans, 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 illustration of the annual premium for the basic SA of Rs. 1 Lakh is: 

Riders Available With LIC Single Premium Endowment Plan 

With this one time investment plan LIC offers two optional riders for extra protection. You can choose them at the time of buying the policy by paying an extra premium:

1. LIC’s Accidental Death & Disability Rider

   This rider will be chosen only at the time of policy inception. If this rider is opted in case of an accidental death, the sum assured amount from the Accidental Benefit rider will be paid in a lump sum. In case of an accidental disability caused by an accident (within 180 days from the accident date), an amount equivalent to the accidental benefit SA will be paid in equal instalments (monthly) for over 10 years.  

2.  LIC’s New Term Assurance Rider

   This rider is available at the policy's inception only. In case the rider is opted for, an amount that is equivalent to the sum assured amount of the term assurance rider so will be paid in case of life assured’s death during the policy term. The premium of this rider should not exceed 100% of the premium amount under the base policy. The premium under all riders shall not go above 30% of the premium under the base one time investment plan LIC provides.

LIC Single Premium Endowment Plan Details

• Surrender Value: The LIC one time investment plan single premium policy has a guaranteed surrender value. Policyholders will receive 75% of the premium paid if the LIC single premium endowment policy is surrendered within the first three years and 90% of the single premium paid from the fourth year onwards.

• 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 30 days of receipt of the policy documents, provided there has been no claim.

• Policy Loan: A policy loan can be obtained under this plan after 3 months from the issue date of the policy, or when the free-look period ends, whichever comes first. The maximum loan amount will be as follows:

  Policy Year	Percentage of Surrender value
  1st to 5th	50%
  6th to 9th	60%
  10th and above	80%

• 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.

Exclusions under LIC Single Premium Endowment Policy

Suicide: 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 a suicide committed within 12 months of policy inception, only 90% of the single premium paid is returned to the nominee. 

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