LIC Single Premium Endowment Plan

LIC Single Premium Endowment Plan

This is a single premium policy that offers a lump sum payout on maturity or death. It is suitable for those who prefer to pay the premium in a single installment.

Benefits of LIC Single Premium Endowment Plan

  1. Single Premium Payment: This plan requires a one-time lump-sum premium payment at the beginning of the policy term, making it convenient for individuals who prefer not to commit to regular premium payments.
  2. Death Benefit: In the unfortunate event of the policyholder’s demise during the policy term, the plan provides a death benefit to the nominee. This benefit typically includes the sum assured, any accrued bonuses, and final additional bonuses, if applicable.
  3. Maturity Benefit: If the policyholder survives the entire policy term, they receive the maturity benefit, which consists of the sum assured, vested bonuses, and final additional bonuses, if any.
  4. Participation in Profits: The LIC Single Premium Endowment Plan participates in the profits of LIC, and policyholders are eligible for bonuses declared by the corporation. These bonuses enhance the overall returns.
  5. Loan Facility: After a certain period, policyholders can avail of a loan against the policy’s cash value, providing liquidity when needed.
  6. Surrender Value: If the policyholder decides to surrender the policy before maturity, a surrender value is paid out, including the cash value and accrued bonuses. However, the surrender value may be lower than the maturity benefit.
  7. Flexible Premium Payment: While it requires a single premium payment, policyholders can choose the sum assured based on their financial goals and premium-paying capacity.
  8. Income Tax Benefits: Premiums paid for the LIC Single Premium Endowment Plan are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the maturity amount is usually tax-exempt under Section 10(10D), subject to certain conditions.
  9. Riders: Policyholders can enhance their coverage by adding riders such as accidental death benefit riders or disability benefit riders for an additional premium.
  10. Financial Security: The policy provides financial security to the policyholder’s family in case of the insured’s demise and ensures a lump-sum payout upon maturity, helping to meet long-term financial goals.
  11. Long-Term Savings: It encourages disciplined savings by requiring a lump-sum premium payment, which can be used for various financial needs, such as retirement planning or funding major expenses.

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