LIC’s Single Premium Endowment Plan is a Non-Linked, Participating, Individual Savings Plan designed to provide financial protection and savings in a single premium payment. This plan is ideal for individuals who want to invest a lump sum and reap guaranteed benefits, including death cover and maturity returns, along with additional bonuses.

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Key Features of LIC Single Premium Endowment Plan

Single Premium: Pay just once and enjoy lifetime benefits.
Dual Benefits: Combines life insurance protection and savings.
Customizable Options:

Choose the duration of coverage.
Opt for settlement benefits in installments.

High Sum Assured Rebate: Attractive discounts on premiums for higher sum assured.
Loan Facility: Liquidity support during emergencies.
Optional Riders: Enhance coverage with additional rider benefits.

Eligibility Conditions

Minimum Entry Age: 30 days
Maximum Entry Age: 65 years
Policy Term: 10 to 25 years
Minimum Sum Assured: ₹1,00,000
Maximum Sum Assured: No limit (in multiples of ₹10,000 or ₹25,000 based on sum assured).
Premium Payment Mode: Single premium only.

Benefits Under LIC Single Premium Endowment Plan

1. Death Benefit

If the policyholder dies after risk commencement and before maturity:
Age Below 50: Higher of Basic Sum Assured or 1.25 times the Single Premium.
Age 50 and Above: Higher of Basic Sum Assured or 1.10 times the Single Premium.
Includes vested Simple Reversionary Bonuses and Final Additional Bonus, if any.

2. Maturity Benefit

At the end of the policy term, the policyholder receives:
Basic Sum Assured.
Accrued bonuses (Simple Reversionary Bonuses and Final Additional Bonus, if any).

3. Participation in Profits

The plan participates in LIC’s profits, entitling policyholders to Simple Reversionary Bonuses annually.

Optional Riders

Accidental Death and Disability Benefit Rider:

Lump sum payout in case of accidental death.
Monthly installments for 10 years in case of accidental disability.

New Term Assurance Rider:

Additional life cover during the policy term.

Settlement Options

Maturity Benefit Settlement:

Receive the maturity benefit in installments over 5, 10, or 15 years.
Minimum installment amounts:
- ₹5,000 (monthly)
- ₹50,000 (yearly)

Death Benefit Settlement:

Nominees can opt for installments over 5, 10, or 15 years.

Loan Facility

Loans available after 3 months or after the free-look period, whichever is later.
Maximum loan percentages:
50% of surrender value (1st to 5th year).
80% of surrender value (10th year onwards).

Surrender Value

Surrender value is higher of:
Guaranteed Surrender Value (GSV):
- 75% of the Single Premium (1st 3 years).
- 90% thereafter.
Special Surrender Value (SSV): Reviewed annually.

FAQs

1. What is the minimum sum assured under Benefits Under LIC Single Premium Endowment Plan?
The minimum sum assured is ₹1,00,000.

2. Can I avail of a loan under Benefits Under LIC Single Premium Endowment Plan?
Yes, loans can be availed after three months from the policy issuance date.

3. What is the rebate for high sum assured in Benefits Under LIC Single Premium Endowment Plan?

₹2,00,000 to less than ₹3,00,000: 20% of Basic Sum Assured (BSA).
₹3,00,000 to less than ₹5,00,000: 30% of BSA.
₹5,00,000 and above: 40% of BSA.

4. What happens if I decide to surrender my policy?
You will receive the higher of the Guaranteed Surrender Value or Special Surrender Value, plus vested bonuses.

5. Are there any tax benefits in Benefits Under LIC Single Premium Endowment Plan?
Yes, premiums paid and benefits received are eligible for tax benefits under prevailing tax laws.

Official Link- LIC

Conclusion

LIC’s Single Premium Endowment Plan is a smart investment choice for individuals looking for one-time payment insurance with lifelong benefits. With its guaranteed returns, flexibility, and optional rider benefits, it is a comprehensive solution for your financial planning needs.

Disclaimer-For more details, visit the LIC website or consult a licensed LIC agent.

LIC Single Premium Endowment Plan 2025: A One-Time Investment for Lifetime Returns