LIC Single Premium Endowment Plan 817 is an endowment insurance policy or a savings plan where the entire premium is paid just once at the start of the policy. LIC Single Premium Endowment policy 817 offers bonus and is not linked to the market. In Single Premium Lic policy the premium is paid in lump sum at the beginning of the policy, and the returns are given to the policyholder at the end of policy term or to the nominee in case of death of the policyholder
LIC Single Premium Policy Review & Features
- LIC released “Single Premium Endowment Plan (T817)” on 1stJanuary 2014 as per new guidelines of IRDA.
- Lic’s single premium endowment planis a combination of Endowment Plus Term insurance by paying a one-time premium amount. Single premium endowment plan 817 participates in Profits.
- In Lic of India single premium endowment planif a person lives till the end of Term of the policy will be given Maturity Benefit, which is SUM ASSURED + BONUS +FAB etc.
- If he dies within the duration of the Policy Death Benefit paid to Nominee i.e. SUM ASSURED + BONUS acquired till that Year.
- We can opt for Accident Benefit Rider and Critical Illness Rider by paying small Amount with the Premium.
- There is High Bonus and High liquidity and saving point under thisBest Lic single premium policy
LIC Single Premium Endowment Plan Parameters
| Age | · Minimum age – 90 days (completed).
· Maximum age – 65 years. |
| Policy Term | · Minimum Term -10 years.
· Maximum Term – 25 years. |
| Sum Assured | · Minimum: Rs. 50,000.
· Maximum: No Limit. |
| Premium payment | · Premium Paying Mode – One time Premium Payment. |
LIC Single Premium Endowment Plan Benefits
LIC Single Premium Endowment Policy provides Benefits such as Death and Maturity benefits. Single Premium LIC Policy benefits are given below.
Maturity Benefit
Sum Assured + Simple Reversionary Bonus + FAB(final additional bonus) if any.
Death Benefit
After Commencement of Risk: If the Insured person dies within the Policy Term after the commencement of Risk, then Nominee of the Policy will be given “Death Benefit(Sum Assured on Death) + Simple Reversionary Bonus + FAB(final additional bonus)” if any.
Before Commencement of Risk: If the Insured person dies within the Policy Term before the commencement of Risk, then Nominee of the Policy will be given Single Premium that he paid excluding taxes and extra premium if any, without interest.
LIC Single Premium Endowment Plan Example
Suppose if Naveen of age 2 years taken Single Premium Endowment Plan for Rs.10,00,000 for 21 years then if he dies in the age of 3 then he will be paid back by the amount 10,00,000 – taxes – any riders he opted or other charges.
Additional Information
Risk Coverage: Till end of Term of the Policy.
Date of Commencement of Risk: In a case of children whose age is less than 8 years risk commencement starts either from 2 years of taking the policy or from achieving 8 years old which is earlier.
Locking period: Lic single premium endowment plan provides a free locking period of 3 years.
Loan Facility: Loan facilities are available under this Single Premium Endowment Plan.
Income Tax Reduction: Available under Section 80C for premiums paid and Section 10 (10D) for Maturity returns. For information about Tax on Insurance Policies refer www.taxqueries.in.
Housing Loan Surety: Home loan Surety is available under this Single Premium Endowment Plan no 817.
Riders available: Yes.
Policy Revival: Policy can be revived before 2 years from the date of First Unpaid Premium (FUP).
Suicide Clause: If insured commit suicide before 12 months he will be returned 80% of premium what he paid.
Proposal Forms: Proposal Form no. 300 or 340 will be used under this plan.
Service Tax: 3.09% service tax is applicable
Cooling-off Period: If a policyholder is not satisfied with the ‘Terms and Conditions” of the policy, he/she may return the policy within 15 days from the date of receipt of the plan.
Back-dating interest: The policies can be dated back within the same financial year.
Assignments/Nominations: Assignment and nominations is possible under this plan