Review of LIC Single Premium Endowment Plan

Mr. Rajat bought LIC Single Premium Endowment Plan that is a life insurance policy offered by the LIC of India. The plan offers attractive features combined with savings and protection. Continue reading to understand how you can invest in this plan and receive infinite benefits:

LIC Single Premium Endowment Plan is a single premium plan, wherein the policyholder needs to pay the whole premium in lump-sum at the start of the plan. The plan offers death as well as maturity benefits and ensures that the policyholder’s future financial goals are looked after. In addition to this, the plan has several optional benefits which can be added to the base policy for enhanced protection.

Who is Eligible to Buy LIC Single Endowment Policy?

Benefits Offered under LIC Single Endowment Policy

1. Death Benefit

   If the policyholder, unfortunately, dies during the policy date, the nominee will receive the death benefit equal to:

   • a) On death during the policy term before the date of commencement of risk:

   Return of single premium (excluding taxes, extra premium, and rider premiums if any), without interest.

   • b) On death during the policy term after the date of commencement of risk:

   Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 1.25 times of Single premium (excluding taxes, extra premium, and rider premiums, if any).

2. Maturity Benefit

   If the policyholder lives until the end of the policy tenure, he/she will be entitled to maturity benefit. The maturity benefit will be calculated as Sum Assured on Maturity, along with vested Simple Reversionary Bonuses and Final Additional Bonus if any.

3. Loan Facility

   The plan allows the policyholders to avail loan after the completion of one policy year. The loan offered will be equal to 90% of the surrender value.

4. Tax Benefits

   The premiums paid under the plan are eligible for tax deductions as per Section 80. Also, the tax benefit is also available on claims received as per Section 10(10D) of the Income Tax Act.

5. Optional Benefits

   The plan offers 2 additional riders that provide enhanced protection to you and your family from life’s uncertainties

   The available riders are:

   • LIC’s Accidental Death and Disability Benefit Rider wherein the Accident Benefit Rider Sum Assured will be payable in a lump sum in case of accidental death. Whereas, if the policyholder suffers from accidental disability arising due to an accident (within 180 days from the date of the accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years.

   • LIC’s New Term Assurance Rider wherein an amount equal to Term Assurance Rider Sum Assured shall be payable on the death of the policyholder during the policy term.

Premium Calculation of LIC Single Endowment Policy

Below mentioned is the sample premium illustration for the Basic Sum Assured of Rs. 1 Lakh:

Wrapping it Up

LIC’s Single Premium Endowment Policy is a comprehensive policy offered by the Life Insurance Corporation of India. Not only Mr. Rajat, but the other individuals who have bought this plan are happy with the policy’s terms and conditions. As per them, they are now stress-free knowing that their one-time investment will secure the financial future of their loved ones.