LIC Single Premium Endowment Plan
LIC Single Premium Endowment Plan is a participating non-market-inked, hassle free one time investment plan, This plan is a combination of savings cum protection which makes this plan very popular. The premium is paid in lump sum at the outset of the policy. This combination provides financial protection against death during the policy term with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.
On death during the policy term before the date of commencement of risk:
Return of single premium excluding service tax and extra premium, if any, without interest.
On death of the Policyholder 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.
Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.
Participation in profits: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation.
Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity on such terms and conditions as may be declared by the Corporation from time to time.
Features of Single Premium Endowment Plan
- This is a one Time premium plan
- Tax benefits under 80 C ( Kindly refer latest Tax rules )
- Minimum entry age is 90 days (completed)
- Maximum entry age : 65 years (nearest birthday)
- Max. maturity age: : 75 years (nearest birthday)
- Minimum policy term : 10 years
- Minimum age at maturity : 18 years (completed)
- Maximum policy term : 25 years
- Minimum Sum Assured : Rs.50,000
- Maximum Sum assured : No limit
- Sum Assured will be in multiples of Rs.5,000 /- only.
- Premium payment mode : Single Premium only
Loan can be availed under this plan any time after completion of first policy year and subject to terms and conditions as the company may specify from time to time.
Buying a life insurance contract is a long term commitment. However, surrender value is available under the plan on earlier termination of the contract.
The Guaranteed Surrender Value allowable shall be as under:
a.)First year: 70% of the Single premium excluding service tax and extra premium, if any.
b.)Thereafter: 90% of the Single premium excluding service tax and extra premium, if any.
In addition, the surrender value of vested simple reversionary bonuses, if any, shall also be payable, which is equal to vested bonuses multiplied by the surrender value factor applicable to vested bonuses.
Tax Benefits : Kindly refer latest Tax rules