Single premium endowment plan
The Single Premium Endowment Plan (Plan No. 917) offered by LIC is a non-linked, participating, individual, life assurance plan. This plan is designed to provide financial protection against death during the policy term with the provision of a lump sum payment at the end of the selected policy term in case of survival. The plan also offers the flexibility of a single premium payment.
Key Features and Benefits of Single Premium Endowment Plan (Plan No. 917)
- Maturity Benefit:
- On survival to the end of the policy term, the Sum Assured on Maturity along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.
- Sum Assured on Maturity is equal to the Basic Sum Assured.
- Death Benefit:
- In case of death during the policy term, the death benefit, defined as the sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. The “Sum Assured on Death” is defined as higher of:
- 125% of Basic Sum Assured; or
- Basic Sum Assured
- This death benefit shall not be less than 105% of the single premium paid, excluding taxes, extra premium, and rider premium, if any.
- In case of death during the policy term, the death benefit, defined as the sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. The “Sum Assured on Death” is defined as higher of:
- Participation in Profits:
- The policy participates in the corporation’s profits and is eligible for Simple Reversionary Bonuses declared per annum during the policy term, provided the policy is in force.
- Loan Facility:
- Loan can be availed against the policy, subject to terms and conditions.
- Surrender Value:
- The policy can be surrendered at any time during the policy term. The Guaranteed Surrender Value shall be a percentage of the single premium excluding taxes and extra premium, if any.
- Free Look Period:
- If the policyholder is not satisfied with the terms and conditions of the policy, they may return the policy to the corporation within 15 days from the date of receipt of the policy document.
Eligibility Criteria
- Minimum Age at Entry: 90 days (completed)
- Maximum Age at Entry: 65 years (nearest birthday)
- Minimum Basic Sum Assured: ₹50,000
- Maximum Basic Sum Assured: No limit (The Basic Sum Assured shall be in multiples of ₹5,000)
- Policy Term: 10 to 25 years
Example
Consider a person aged 30 years opting for a policy term of 20 years with a Basic Sum Assured of ₹5,00,000. The single premium paid will depend on the age, policy term, and sum assured chosen. If the policyholder survives the policy term, they will receive the Basic Sum Assured along with the accrued bonuses. If the policyholder passes away during the policy term, their nominee will receive the death benefit.
For detailed illustrations and premium calculations based on individual requirements, it’s advisable to contact 7231814845 an LIC agent or visit the LIC official website.