LIC’s Single Premium Endowment 717

Description

The LIC Single Premium Endowment Plan’s features

LIC Single Premium Endowment Plan has a number of noteworthy features.

1. 1. Single-Premium Plan: Under this plan, the policyholder must pay the whole premium amount up front before the insurance takes effect.
   2. Free Look Period: Policyholders are granted a 30-day “Free Look Period” starting on the day the policy is issued. They have this window of time to decide whether or not to terminate the plan if they are unhappy with it. Upon termination, the premium payment will be returned, less any applicable fees.
   3. Guaranteed Surrender Value: The policyholder will get a percentage of the single premium paid back if they choose to surrender the plan. The guaranteed surrender value is computed as follows and is dependent on the remaining policy term:

–      During first three policy year: 75% of the Single premium paid
–      Thereafter: 90% of the Single premium paid.

4. Benefits to taxes: Under Section 80C of the Income Tax Act, 1961, the single premium paid for this                     LIC one-time investment plan is deductible from taxes. Policyholders do not have to pay taxes on the                       death and maturity benefits they get from this plan, as well as other advantages.

Sum Assured (In Rs.)	Rebates
50,000 To 95,000	Nil
1,00,000 to 1,95,000	Nil
2,00,000 to 2,95,000	20% Of S.A.
3,00,000 to 5,00,000	30% Of S.A.
5,00,000 & Above	40%o B.S.A.

 

Advantages of the LIC Single Premium Endowment Program

To help the policyholder, the LIC Single Premium Endowment Plan provides a number of benefits. Here are a few of the main advantages:

     1 . Death Benefit: The death benefit is paid out in the sad event that the insured passes away during the duration of the policy. The amount paid out is determined by the insured’s death date:-

– The policyholder receives a return of the single premium paid, interest-free, if the insured dies                                    during the policy period prior to the start of risk.
– The nominee is entitled to the sum guaranteed, vested reversionary bonuses, and any final further                              bonuses in the event that the insured passes away after the start of risk.

   2. Maturity Benefit: If the policyholder survives to the end of the policy term, they will receive a lump sum payout that consists of their “Sum Assured,” “Simple Reversionary Bonus,” which is announced yearly, and any other bonuses they may earn (such as “Final Additional Bonus”). After then, the policy is  cancelled.

   3. Participation in Earnings: As a participating endowment plan, policyholders are eligible to share in the earnings of the business. In order to improve the total returns on the policy, they are qualified to collect “Simple Reversionary Bonuses,” which are announced yearly, and, if available, a “Final additional Bonus.”

In addition to life insurance protection, the LIC Single Premium Endowment Plan gives participants the chance to earn incentives and share in the company’s financial success.

Eligibility Conditions:

Minimum Entry Age	30 days (completed)
Maximum Entry Age	65 years (nearest birthday)
Maximum Maturity Age	75 years (nearest birthday)
Minimum Policy Term	10 years
Minimum Age at Maturity	18 years (completed)
Maximum Policy Term	25 years
Minimum Sum Assured	1,00,000
Maximum Sum Assured	No Limit
Premium Payment Mode	Single Premium Only

 

The actual allocation to policyholders, out of the surplus emerging from the actuarial investigation, shall be as approved by Central Government in accordance with the provisions in this regard under LIC Act, 1956.