LIC Single Premium Endowment Plan,LIC Single Premium Endowment Plan Features, LIC Single Premium Endowment Plan Benefits, LIC Single Premium Endowment Plan Details:
As the name Single Premium Endowment Plan itself describes, it is an endowment insurance policy which is meant for combining both savings and financial protection. In this plan the entire premium is paid in one go that is in the start of the policy. It returns the whole sum along with bonuses to the policy holder in the end of the policy or to the nominee in case of the death of the policy holder. Single Premium Endowment Plan provides bonus and is not linked to the market.
LIC Single Premium Endowment Plan Features:
This endowment plan has various features. Some I am going to discuss below:
- It is a single term endowment plan i.e. entire premium is paid at once.
- In this plan policyholder is assured to be paid a huge sum at the end of policy term.
- Maturity benefit Sum Assured + Accrued Bonus.
- Bonus is payable on maturity or earlier death.
- Death Benefit is Sum Assured + Bonus.
LIC Single Premium Endowment Plan Benefits:
Various benefits associated with this endowment plan are as:
- Death Benefits: If there is unfortunate death of the insured person during the policy term, the nominee would be paid: Before the commencement of risk, only single premium paid less taxes and extra premium will be returned as death benefit and the policy will be terminated. After the commencement of risk, Sum assured + Accrued bonuses will be paid as death benefit and the policy will be terminated.
- Maturity Benefit: At the maturity of the policy policyholder will be paid Sum assured + Accrued reversionary bonus + final addition bonus.
- Income Tax Benefit: Under section 80C, life insurance premiums paid up to Rs. 100000 are allowed as a deduction from the taxable income each year. Maturity Benefit is also tax free under section 10(10)D subject to fulfilment of all terms and conditions.
LIC Single Premium Endowment Plan Eligibility:
Minimum sum assured is 50,000 which is a multiple of 5000 and maximum sum has no limit. Policy can be taken for a minimum of 10 years and maturity age is 25 years. Entry age of life insured is 90 days minimum and 65 years maximum. Minimum maturity age of the policy is 18 years and policy terminates at the age of 75 years.
This policy includes two types of bonuses:
- Final additional bonus may be payable provided that the policy has run for certain minimum period.
- Simple Reversionary Bonus is declared per thousand sum assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Bonuses will be added during the selected term or till death, if it occurs earlier. Simple Reversionary Bonus accrues during the premium paying term and is paid at the end of the premium paying term or on earlier death along with the final additional bonus, if any. No bonus is paid on death after the premium paying term.
Loan facility is also available under this policy after completion of the first policy year associated with it various terms and condition. For other details you can visit the official website of LIC.