LIC Single Premium Endowment Plan Benefits

LIC’s Single Premium Endowment Plan is a Non linked, Participating, Individual,

Life Assurance is a savings plan that offers a combination of savings and life cover benefits.

Eligibility Criteria

Other Important Details

Key Benefits of LIC Single Premium Endowment Plan

1. Death Benefit

In case of death during the policy term before the risk commencement date:

• Return of single premium (excluding taxes and rider premiums).

In case of death during the policy term after the risk commencement date:

• Sum Assured on Death: Higher of Basic Sum Assured or 1.25 times Single premium plus vested simple reversionary and additional bonus, if any.

2. Maturity Benefit

If the Life Assured survives the complete policy term: 

Sum Assured on Maturity: Equal to Basic Sum Assured plus vested simple reversionary and additional bonus, if any.

3. Participation In Profits

LIC Single Premium Endowment policy participates in corporation profits and offers investors Simple Reversionary and additional bonuses. 

Additional Benefits of LIC Single Premium Endowment Plan

1. Option to take Maturity Benefit in Installment

This option allows investors to receive maturity benefits in installments over a time period of 5, 10, or 15 years instead of a lump sum. The below minimum installment amounts are paid at yearly, half-yearly, quarterly, or monthly intervals.

• • Monthly: ₹5,000
  • Quarterly: ₹15,000
  • Half-Yearly: ₹25,000
  • Yearly: ₹50,000

2. Option to take Death Benefit in Installment

Just like maturity benefits, policyholders can receive the death benefit in installments over 5, 10, or 15 years instead of a lump sum. The chosen amount (Net Claim Amount) can be specified as an absolute value or a percentage of the total claim proceeds. 

Installment Payments: Paid in advance at yearly, half-yearly, quarterly, or monthly intervals, as chosen.

Minimum installment amounts:

• • Monthly: ₹5,000
  • Quarterly: ₹15,000
  • Half-Yearly: ₹25,000
  • Yearly: ₹50,000

Riders Available

The LIC Single Premium Endowment plan offers two riders that can be added to the base policy by paying an additional premium.

1. LIC’s Accidental Death and Disability Benefit Rider

In case of the policyholder's accidental death, the Accident Benefit Rider Sum Assured will be given in a lump sum amount. 

In case of accidental disability happening due to an accident (within 180 days from the accident date), an amount equal to the Accident Benefit Sum Assured will be given in equal monthly installments over 10 years.  

2. LIC’s New Term Assurance Rider

It provides Term Assurance Rider Sum Assured on the death of the Life Assured during the policy term. 

Note: Premiums for Accidental Death and Disability Benefit Rider cannot exceed 100% of the base plan premium. Total premiums for all riders cannot exceed 30% of the base plan premium. Both riders can only be added at the time of policy inception. 

Premium Chart

Below is the sample illustrative annual premiums for Basic Sum Assured of ₹1 Lakh. 

Exclusions

The policy will become null and void if the investor commits suicide within 12 months from the risk commencement date. In such a scenario, the higher amount between 90% of the Single Premium for the Base Policy (excluding taxes, extra premiums, and rider premiums other than the term assurance rider premium) or the SV (Surrender Value) as of the date of death will be paid.

How to Buy LIC Single Premium Endowment Plan?

Buy LIC Single Premium Endowment Plan from InsuranceDekho is hassle-free. Here’s how! 

1. Select “Life Insurance” under the “Insurance” tab on the InsuranceDekho website. 
2. Provide your personal details, click on "View Plans," and select  "LIC Single Premium Endowment Plan" from the list of life insurance policies. Add riders if you want to customize the policy coverage. 
3. Enter your education, occupation, and annual income details. Review the premium amount and proceed to payment by clicking on the "Accept and Pay" button. 
4. The company may ask you to undergo a medical evaluation. Upon approval, you will receive the policy confirmation via email or SMS.

Frequently Asked Questions (FAQs) 

Ques 1. Is loan facility available under the LIC Single Premium Endowment Plan? 

Ans. Yes! Investors can avail of a loan anytime after completing one policy year. The loan amount can be up to 90% of the surrender value at the time of approval. 

Ques 2. What is LIC Single Premium Endowment Plan? 

Ans. The LIC Single Premium Endowment is a life insurance plan that requires a one-time premium payment and provides financial protection along with a lump sum benefit on maturity. 

Ques 3. Can I surrender the policy? 

Ans. Yes, you can surrender the policy at any time during the policy term. Upon surrender, the Corporation will pay the Surrender Value, which is the higher of the GSV (Guaranteed Surrender Value) or Special Surrender Value. 

Ques 4. Is there a free-look period for this plan?

Ans. Yes, there is a 15-day free-look period during which the policyholder can review the policy terms and cancel the policy if they are not satisfied. 

Ques 5. What is the policy term for the LIC Single Premium Endowment Plan?

Ans. The policy term for the LIC Single Premium Endowment policy ranges from 10 to 25 years.

Ques 6. What is the LIC Single Premium Endowment Plan minimum and maximum sum assured?

Ans. The minimum sum assured is ₹50,000, with no upper limit, subject to underwriting guidelines.