LIC Single Premium Endowment Plan (Plan No. 914)
The LIC Single Premium Endowment Plan is a life insurance plan from LIC of India. You pay only once, and the plan stays active for the full time. You or your family will get a lump sum (big amount of money) at the end of the plan or if something happens to you during the plan period.
After one year, you can also take a loan using this plan. You can borrow up to 90% of the amount the plan is worth if you stop it early. This plan helps protect your family and also helps you save money for the future.
Eligibility Criteria of LIC Single Premium Endowment
| Parameters | Criteria |
|---|---|
| Min & Max Entry Age | Min: 8 YearsMax: 55 Years |
| Min & Max Sum Insured | Min: 1,00,000Max: No Limit |
| Min & Max Maturity Age | Min: 20 CompletedMax: 75 years |
| Policy Term (PT) | 10 to 25 years |
| Premium Paying Term (PPT) | Single Premium Only |
Main Features of LIC Single Premium Endowment Policy
- You pay the full amount (premium) only once, at the beginning of the plan.
- This plan gives you both returns (money back) and life protection if something bad happens.
- You can buy this policy for anyone who is between 90 days old and 65 years old.
- If the person lives until the end of the plan, or dies before it ends, LIC will pay the full amount promised plus extra bonus money. After that, the plan ends.
- This policy earns bonus money from LIC's profits. It gives simple reversionary bonus and sometimes an extra final bonus too.
LIC Single Premium Endowment Plan Benefits
Like many other LIC endowment plans, the LIC Single Premium Endowment Plan has been around for a long time. Because of this, the person who takes the policy can get better returns at the end. When someone buys the LIC Single Premium Endowment Plan (Plan No. 917), they can get the following benefits:
- 02
Death Benefit
If the person who bought the policy dies during the policy term, LIC gives money to the nominee in the following way:If the person dies before the risk cover starts LIC will return the premium amount (after cutting any taxes). No extra money (interest) is given.If the person dies after the risk cover starts The nominee will get the “Sum Assured on Death,” which means the higher of:The basic sum assured, or1.25 times the single premium amount.Along with this, LIC will also pay any bonuses added to the policy.
- 01
Maturity Benefit
If the person who bought the policy is alive at the end of the policy term, they will get the Sum Assured on Maturity. Along with this, they will also receive bonuses added over the years, including a final bonus. The maturity amount is the same as the basic sum assured decided when the policy was started. You can also use the LIC Maturity Calculator to find out how much you may get at the end.
- 03
Participation in Profits
This plan also shares LIC's profits with the policyholder. Every year, LIC may add simple reversionary bonuses to the policy, depending on the company's performance. At the time of death or maturity, LIC may also give a final bonus under Plan 917.
- 04
Tax Benefits
You can get tax benefits on this plan. The premium you pay is eligible for tax exemption up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. Also, the money you receive at maturity or on death is tax-free under Section 10(10D).
How LIC Single Premium Endowment Works?
Mr. Suresh, age 35, wants to buy this LIC plan.
- He chooses a Sum Assured of ₹2,00,000
- Policy Term is 20 years
- Single Premium = ₹1,05,200
- Tax (4.5%) = ₹4,734
- Total Payment = ₹1,09,934 (one time only)
If Mr. Suresh dies after 10 years (during policy term):
| Details | Amount (Rs.) |
|---|---|
| Sum Assured | 2,00,000 |
| Simple Reversionary Bonus | 45 x 200 x 10 = 90,000 |
| Final Addition Bonus (one-time) | 20 x 200 = 4,000 |
| Total to Nominee | 2,94,000 |
If Mr. Suresh Survives Full 20 Years:
| Details | Amount (Rs.) |
|---|---|
| Sum Assured | 2,00,000 |
| Simple Reversionary Bonus | Rs. 45 per Rs. 1,000 x 200 x 20 years = 1,80,000 |
| Final Addition Bonus (one-time) | 20 x 200 = 4,000 |
| Total Maturity Value | 3,84,000 |
Riders Available With LIC Single Premium Endowment Plan
LIC offers two optional riders with this plan. These riders give extra protection and can be added when you buy the policy by paying a little more.
- 01
Accidental Death & Disability Rider
This rider can be added only at the time of buying the policy. If the person dies due to an accident, the rider's sum assured will be paid in a lump sum (one-time payment). Also, if the person becomes disabled due to an accident (within 180 days of the accident), the same amount will be paid in equal monthly installments for 10 years.
- 02
LIC's New Term Assurance Rider
This rider can also be added only when the policy starts. If the person dies during the policy term, the rider sum assured will be paid to the nominee. The cost (premium) of this rider cannot be more than 100% of the main policy's premium. The total cost of all riders must not be more than 30% of the main policy's premium.
Policy Details of LIC Single Premium Endowment Plan
Grace Period
In this plan, there is no grace period. This is because you only need to pay the premium once at the beginning. You don't have to make any more payments after that, so there is no need for extra time to pay.
Policy Termination or Surrender Benefit
If you want to close or surrender your policy early, LIC will give you some money back. If you surrender the policy in the first year, you will get back 70% of the premium you paid (excluding tax and any extra charges). If you surrender the policy after the first year, you will get 90% of the premium paid (again, excluding tax, extra charges, and any survival benefits already given).
Surrender Value
The LIC Single Premium Endowment Plan offers a guaranteed amount if you decide to stop the policy. This amount is called the surrender value. If you stop the policy in the first year, you will get 70% of your premium. From the second year onwards, you will receive 90% of your premium. This makes sure that even if you leave the plan early, you still get back a part of your money.
Free Look Period
After buying the policy, if you read the terms and conditions and feel that the policy is not right for you, you can cancel it. You must cancel it within 15 days of getting the policy papers. This is called the free look period. You can use this option only if no claim has been made during this time.
Policy Loan
You can take a loan on your policy after it has completed one year. LIC allows you to borrow up to 90% of the surrender value. This can be helpful in times of financial need, and you do not have to break the policy to get funds.
Rebates (Discounts)
LIC also gives discounts on the premium if you choose a higher sum assured (insurance cover). This means if you select a big cover amount, you may pay less per ₹1,000 of coverage, making it more affordable and giving you better value.
Exclusions of the LIC Single Premium Endowment Plan?
If the person who bought the policy dies by suicide within 12 months of the start of the policy, then the full death benefit will not be given.
In this case, the policy will become void (cancelled), and the nominee will only receive the higher of the two amounts below:90% of the premium paid (excluding any taxes), orThe surrender value of the policy on the date of death.This rule is there to prevent misuse and is common in most life insurance plans.
FAQs
Yes, you can take a loan after the policy has completed 1 year. The loan amount and interest rate are decided by LIC and may change from time to time.
If the policyholder dies by suicide within 12 months of starting the policy, the full death benefit is not given. In this case, LIC will only return 90% of the premium paid (excluding taxes and extra charges, if any).
Yes, if you take a loan on this policy, you have to pay interest on it. The interest rate is fixed by LIC and can change over time.
The bonus amount is not fixed. It depends on LIC's profits each year. So, the bonus rate can change every year and cannot be known in advance.
You will need the following documents to buy the LIC Single Premium Endowment Plan:
- Age proof
- Address proof
- ID proof
- Income proof
- Filled and signed application form
- Passport-size photographs