LIC’s Single Premium Endowment Plan is an individual life assurance and savings plan. It offers a combination of savings and protection features. The premium is paid as a lump sum at the beginning of the policy. This plan provides financial protection in the event of the policyholder’s death during the policy term and offers a lump sum payout at the end of the selected policy term if the policyholder survives. Additionally, it offers a loan facility to address liquidity needs.
Death Benefit
a) If the policyholder passes away before the commencement of risk, a return of the single premium (excluding taxes, extra premium, and rider premiums) will be provided.
b) If the policyholder passes away after the commencement of risk, the payout includes the Sum Assured along with bonuses, with the ‘Sum Assured on Death’ defined as the higher of the Basic Sum Assured or 1.25 times the Single premium (excluding taxes and additional premiums).
Maturity Benefit
If the policyholder survives the policy term, they will receive the Sum Assured on Maturity, along with vested Simple Reversionary Bonuses and any Final Additional Bonus. The ‘Sum Assured on Maturity’ is equal to the Basic Sum Assured.
Participation in profits
The policy is eligible for Simple Reversionary Bonuses based on the corporation’s performance, and a Final (Additional) Bonus may be declared in the year when a claim is made, either by death or maturity, as per terms and conditions set by the Corporation.
The allocation of surplus from actuarial investigations to policyholders is subject to approval by the Central Government in accordance with provisions under the LIC Act, 1956.
Single Premium Endowment Plan Eligibility Conditions
| a) Minimum Basic Sum Assured | 65 years (nearest birthday) | |
| b) Maximum Basic Sum Assured | 65 years (nearest birthday) | |
| c) Maximum maturity age | 75 years (nearest birthday) | |
| d) Minimum policy term | 10 years | |
| e) Minimum age at maturity | 18 years (completed) | |
| f) Maximum policy term | 25 years | |
| g) Minimum Sum Assured | Rs 50,000 | |
| h) Maximum Sum assured Sum Assured will be in multiples of Rs 5,000/- only | No limit | |
| i) Premium payment mode | Single Premium only | |
Payment Options Available
| Mode of Instalment payment | Minimum instalment amount | |
| Monthly | Rs 5,000/- | |
| Quarterly | Rs 15,000/- | |
| Half-Yearly | Rs 25,000/- | |
| Yearly | Rs 50,000/- | |
Exclusion:
Suicide: The policy becomes void if the Life Assured, whether sane or insane, commits suicide within 12 months from the date of risk commencement. In such a case, the payout will be the higher of 90% of the Single Premium for the Base Policy (excluding any taxes, extra premium, and rider premiums, except for the term assurance rider premium, if any) or the Surrender Value available as of the date of death. No other claims under this policy will be entertained by the Corporation.
