As the name suggests, LIC Single Premium Endowment Plan is a Single Premium Participating Endowment Plan. Thus, it is a traditional endowment with death and maturity benefits along with a bonus facility. Endowment insurance plans provide a cover against risk and offer guaranteed returns that generally include the 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.
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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 endowment 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 coverage that a policyholder has by protecting him or her from risks that are not covered under the main policy.
|
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 |
An individual looking to buy a LIC single premium endowment policy should know various aspects of its premium calculation. For instance, they must know how premium changes based on the different sum assured and according to the age of the insured individual holding the policy, and what is sample premium 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 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 |
The below table shows the sample premium rates for the policy for different tenures for every Rs. 1,000 of Sum Assured. The rates under the LIC single premium endowment 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 |
- |
The 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 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 |
Not applicable as there is no need for further premium payment under a LIC single premium endowment policy
The Surrender Benefit is available under this plan:
Policyholders will also receive a surrender value of any vested simple reversionary bonuses under the policy. The surrender value of these bonuses will be value arrived at by multiplying these bonuses 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.
If you would not be 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.
In case of suicide committed within 12 months of policy inception only 90% of the single premium paid is returned to the nominee.
The 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. A medical examination may be required in some cases, based on the sum assured and the age of the person taking up the LIC policy.
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