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  • LIC Single Premium Endowment Plan

    LIC Life Insurance

    Investing in insurance can be tricky in today’s world of options, but the LIC Single Premium Endowment Plan stands out as one of the few plans that has an extraordinary number of features that benefit the policyholder. In addition to a benefit being paid out to dependents, the plan also provides for a lump sum amount to be paid out the policyholder in case he / she survives till the end of the policy term. This insurance plan also provides a loan facility whereby policyholders can meet any urgent liquidity needs.

    Eligibility Conditions for LIC Single Premium Endowment Plan

    Entry Age

    • Minimum: 90 days.
    • Maximum: 65 years.

    Maturity Age

    • Minimum: 18 years.
    • Maximum: 75 years.

    Features and Benefits of the LIC Single Premium Endowment Plan

    Plan Type

    Participating, non-linked, savings cum protection plan.

    Plan basis

    Individual.

    Premium paying mode

    Single Premium / Lump Sum Premium at the outset of the policy.

    Minimum Policy Term

    10 years.

    Maximum Policy Term

    25 years.

    Minimum Sum Assured

    Rs.50,000.

    Maximum Sum Assured

    No limit. (Sum assured can only raised or lowered in multiples of Rs.5,000).

    Benefits

    1. Death Benefit:

      In the unfortunate event of the policyholder’s death during the term when the policy is in force (after risk has commenced), the dependants or named nominees of the policyholder will be entitled to receive an amount equal to the value of the Sum Assured, plus Simple Reversionary Bonuses, plus Final Additional Bonus, if any.

      If the life insured dies before the commencement of risk, however, the company will pay his / her dependants an amount equal to the single premium paid minus service tax and extra premium. This amount is without interest.

    2. Maturity Benefit:

      In the event that the policyholder survives until the maturity date, he / she will be paid an amount equal to the Sum Assured, plus Simple Reversionary Bonuses, plus Final Additional Bonus, if any.

    3. Participation in Profits of LIC:

      Policyholders will be eligible to participate in the profit of LIC, and will receive Simple Reversionary Bonuses which are declared based on the experience of LIC.

    4. Final Additional Bonus:

      This is a bonus amount that may be declared in the policy year when there is either a death or maturity claim. The terms and conditions for this are determined and communicated by LIC as per their discretion.

    Free Look period

    The free look period for this LIC policy is called the “Cooling Off Period”. Policyholders who are not totally satisfied with the terms and conditions of the policy can return the policy documents to the company with a stated reason for the same. The LIC will then cancel the policy as it stands and refund an amount equal to:

    the single premium paid minus (-) risk premium proportionate to the time in which risk cover was active (-) charges for medical examinations and reports (-) stamp duty charges, etc.

    Surrender Value

    The policy will have a guaranteed surrender value payable as under:

    • First Year: 70% of the Single Premium (minus extra premiums and service tax).
    • Thereafter: 90% of the Single Premium (minus extra premiums and service tax).

    Tax

    • Taxes will be payable as per prevailing taxation laws.
    • The amount of tax paid will not be considered for the calculation of benefits payable.

    Riders

    • There are no additional riders available with this plan.

    Exclusions

    The policy shall be rendered void if:

    • The life insured commits suicide within 1 year from the commencement of risk, irrespective of whether he or she is sane or insane.
    • The only claim payable under this case will be a refund of 90% of the single premiums paid minus taxes and extra premium paid.

    Loan

    A loan can be taken against this insurance policy after the completion of 12 months after the commencement of risk.

    High Sum Assured Rebates

    This policy offers rebates for higher sum assured options chosen as under:

    • Sum Assured Rs.50,000 to Rs.95,000 – No rebate.
    • Sum Assured Rs.1,00,000 to Rs.1,95,000 – 18% of SA.
    • Sum Assured Rs.2,00,000 to Rs.2,95,000 – 25% of SA.
    • Sum Assured Rs.3,00,000 and above – 30% of SA.

    How does the LIC Single Premium Endowment Plan Work?

    A person seeking insurance cover purchases the plan from the LIC and is brought under the umbrella of insurance coverage upon paying the single lump sum premium.

    The person must choose the desired Sum Assured and Term of the policy, according to which the premiums will be decided.

    Once the policy is active, if the person insured dies at any time before the maturity date – his / her dependants will be paid an amount equal to the Sum Assured plus bonuses, thus taking care of their financial needs, and not leaving them in a financially insecure condition.

    If the person insured survives till the end of the policy, and past the maturity date, he or she will be paid an amount equal to the sum assured plus bonuses.

    If, at any time, the person insured finds him or herself in urgent requirement of liquid funds, he or she can take a loan against the policy which will not affect the level of coverage, etc.

    Riders

    There are no additional riders available with this plan.

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