LIC Single Premium Endowment Plan

LIC Single Premium Endowment Plan – Table No. 817

As the name suggests, this is Single Premium Plan – you just make a single premium payment at the beginning of the policy term. It is a participating endowment plan, which means that bonus will be paid through the term of the policy. The bonus is a accumulated and at the end of the policy term, the sum assured + the accrued bonus is paid to the policyholder.

You should keep in mind that such plans are not helpful for tax savings purposes. Read more about it under the tax benefits section below.

Launch Date10th Oct, 2013
Plan DetailsTable No. 817
Policy TypeTraditional Endowment Plan

How does the LIC Single Premium Endowment Policy work?

When buying the LIC Single Premium Endowment Plan, the customer has to decide on the following:

  1. Sum Assured– this is the amount of cover that you want. You have to choose a minimum of Rs. 50,000. There is no upper limit.
  2. Policy Term– this is the period for which you wish to have the cover. You can choose a policy term between 10 to 25 years.

Based on the above 2 factors and theage at which you are taking the policy, yourannual premiumwill be decided.

Since it is a Participating plan, you will be eligible for the following at various points through the policy term. These are not guaranteed and you will only know the values as and when they are declared by LIC.

  • Simple Reversionary Bonus
  • Final Addition Bonus, if any

Benefits in the LIC Single Premium Endowment Plan

Death Benefit in LIC Single Premium Endowment Plan

In case of death of the policyholder at anytime during the policy term, the nominee will receive the sum of the following:

  • Sum Assured
  • Simple Reversionary Bonus which has been declared will date
  • Final Addition Bonus if declared in that year

In case thepolicyholder is less than 8 years of age, the death coverage will start either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more at the time of taking the policy, death cover will start immediately. In case of death of the policyholder before the death coverage has started, the single premium minus the taxes would be paid to the nominee.

Maturity Benefit in LIC Single Premium Endowment Plan

At the time of maturity of the plan, that is when the policy term gets over, the policyholder will receive the sum of the following:

  • Sum Assured
  • Simple Reversionary Bonus which has been declared at the end of every year
  • Final Addition Bonus if declared in that year