LIC’s Single Premium Endowment Plan

Single Premium Endowment Plan – UIN 512N283VO1

The single Premium Endowment plan is a conventional plan with profits which works as an insurance and investment. In this plan premium is paid only once at the beginning of the policy.

Single Premium Endowment plan is recommended for all age group because it can be started as early as age 90 days. It not only helps save tax but it also has high bonus and liquidity.

 

Single Premium Endowment Plan

 

Plan Features

Min/Max Age at Entry  90 days to 65 years
Min/Max Policy Term  10 to 25 Years
Min/Max Maximum Maturity Age  18 to 75 years
Min/Max Sum Assured  50,000 to No Limit** (Incremental Sum Assured in multiples of 5000)
Tax Rebate  Yes, both premium payments & death/maturity under section 80(c) and 10(10d) of I.T Act
Loan Facility  Yes, after 3 years from date of policy inception
Premium Payment  Single premium to be paid at the beginning of the plan

 

Date of Commencement of Risk

This is applicable for the policyholder whose age is less than 8 years, life insurance will start after 2 years from the date in which the policy has begun or when the child turns 8, whichever comes earlier. If the insured is equal to or above 8 years, risk cover will start immediately.

 

Benefits of Single Premium Endowment Plan

  • On Maturity – If the policyholder survives till the end of the policy term then he/she would be eligible to claim the Maturity Benefits which are payable at the end of the maturity term.
 Basic Sum Assured + Vested Simple Reversionary Bonus (Depends on Company’s Experience) + FAB (Final Additional Bonus, if any)

 

  • On Death – If the policyholder dies during the policy term after the commencement of risk.
 Sum Assured + Vested Simple Reversionary Bonus (Depends on Company’s Experience) + FAB (Final Additional Bonus, if any).

 

  • On Death – If the policyholder dies during the policy term before the commencement of risk.
 Single Premium paid in the beginning– Tax – Any other extra premium (without interest)

 

 

Surrender & Suicide Cases

A policyholder can surrender the Single Premium Endowment Plan at any given time of the policy term.

  • Guaranteed Surrender value on the first year of surrendering the policy i.e. 70% of single premium paid minus service tax and extra premiums if any.
  • Guaranteed Surrender value any time after the first year of surrendering the policy i.e. 90% of the single premium paid minus service tax and extra premiums if any.

 

Suicide: The policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, the company will not entertain any claim under this policy except to the extent of 90% of the single premium paid excluding taxes and any extra premium paid.

 

Documents Required

  • Plan application form with a photograph
  • Residence proof
  • ID & Age proof
  • Medical reports if necessary

 



Disclaimer – Though we try our best but we do not guarantee correctness of information hence you are advised to be cautious & do thorough research before reaching to a conclusion. If you find any discrepancies you’re welcome to contact us.