Investment Plans 1407 views July 28, 2020

LIC Single Premium Endowment Plan

Nowadays, everyone prefers to boost up their wealth but through a safe mean and the safest investment for boosting your wealth is the insurance plan. On the other hand, if you want to invest your money in the safe hands then you must make your investment in the LIC insurance plans because it is a government organization. You can take a look at the LIC Single Premium Endowment Plan in which you will have to pay the lump sum premium amount. Your invested fund will grow with time and as a result, your wealth will be increased. So, let’s explore and go through the detail features of this endowment policy.

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Key Features of Single Premium Endowment Plan

  1. There are different options available to choose the amount of Sum Assured.
  2. You are free to choose the policy term.
  3. Get Death Benefits and Maturity Benefits in this plan.
  4. There is no maximum limit for the amount of Sum Assured.
  5. You are allowed to add riders as well in this plan.
  6. Enjoy a Free-Look Period of 15 days during which you can return the policy.
  7. Enjoy Tax Benefits as well in this insurance plan.

Benefits of Single Premium Endowment Plan

There are some exclusive benefits of this plan that will help you to boost up your savings. So, you must explore all the benefits in detail before buying the plan.

Death Benefits

In case of unfortunate death of the insured, the beneficiary is entitled to receive the death benefits and there are two conditions for receiving the death benefit.

If the insured dies during the policy term and before the commencement of risk then Single Premium will be returned to the nominee without any interest.

If the insured dies during the policy term and after the commencement of risk then the nominee will receive Sum Assured plus Reversionary Bonus and Final Additional Bonus.

The Value of the Sum Assured will be the highest of the following:-

  1. 1.25 Times of Single Premium
  2. Basic Sum Assured

Maturity Benefits

If the insured successfully survives the policy term then he is entitled to receive the following:-

  1. Sum Assured on Maturity
  2. Simple Revisionary Bonuses
  3. Final Additional Bonus

Bonuses

The value of the benefits will increase through revisionary bonuses and final additional bonus. These benefits will increase once the company generates profits in a year.

Option to Take Death Benefits in Instalments

In the LIC Single Premium Endowment Plan, you are allowed to take the death benefits in instalments. The time periods available to take the death benefits are 5 years, 10 years, and 15 years. The company will provide you with the death benefits in instalments instead of taking the lump sum amount. Here are the different minimum amounts for different payment modes.

  1. Monthly Rs.5000
  2. Quarterly Rs.15000
  3. Half-Yearly Rs.25000
  4. Yearly Rs.50000

Various Modes for Paying the Premium

LIC gives you the freedom to pay the amount of premium on a yearly, half-yearly, quarterly, and monthly basis. You can use the NACH facility to make the payment of your premium amount.

Rebate on Premiums

You will get a rebate on the amount of premium if you choose a high value of the Sum assured. You can see the details of the rebate in the following table:-

Sum AssuredRebate on Premium
Sum Assured is Between Rs.50000 to Rs.95000.NIL
Sum Assured is Between Rs.100000 and Rs.195000.18% of the Sum Assured
Sum Assured is Between Rs.200000 to Rs.295000.25% of the Sum Assured
Sum Assured is Between Rs.300000 and above.30% of the Sum Assured

Surrender Benefits

You can surrender this policy in case of an emergency and take the surrender benefits during the policy term. On surrendering the policy you will be eligible to receive the following Sum of Money.

  1. If you surrender the policy during the 1st year of the policy term then you are entitled to receive 75% of the Single Premium Paid as the surrender value.
  2. If you surrender the policy after the completion of 1st year of the policy term then you are entitled to receive 90% of the Single Premium Paid as the surrender value.

Loan Against Policy

If you don’t want to surrender the policy and still need some funds then you can take a loan against the policy from LIC. But you are allowed to take a loan against the policy only when it has acquired a surrender value and the company will start charging interest on the loan amount from the date when the loan is sanctioned.

Free-Look Period

If in case you don’t find this policy suitable then LIC gives you a time of 15 days to return the policy. This is known as the free look period. You will get a free-look period of 30 days if you have purchased the plan online.

Add-on Benefits

There are some optional benefits in this plan that you can add to this endowment plan. These benefits will cover some extra risks that are related to your life. You can explore the riders that you can add to this plan.

  1. Accidental Death and Disability Benefit Rider
  2. New Term Assurance Rider

LIC Single Premium Endowment Plan Eligibility Criteria

ParticularsDetails
Minimum Age of Entry90 Days
Maximum Age of Entry65 Years
Maximum Age of Maturity75 Years
Minimum Policy Term10 Years
Maximum Policy Term25 Years
Minimum Amount of the Sum AssuredRs.50000
Maximum Amount of the Sum AssuredNo Limit
Premium Payment ModeOnly Once

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