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LIC Single Premium Endowment Plan

LIC, one of the largest insurance companies in India is known for its range of insurance plans. They offer plenty of plans like endowment plans, pension plans, money back plans, whole life plans, and much more. Out of these, the endowment plan is one of the top preferred insurance plans offered by LIC. The endowment plan further comes with a multitude of options in its segment. We here have picked one such offering from LIC in form of a Single Premium Endowment Plan for today. Read along.

What is an Endowment Plan?

First things first, we need to know about endowment plans before learning more about LIC’s offering. Endowment plans are those insurance policies that provide the insurer with the cover against risk along with the guarantee of return. It can also be described as a form of a guaranteed corpus that a user can avail of at the end of the maturity period. If the insurer succumbs to untimely death before the maturity period, then his/her family shall be entitled to the policy amount.

LIC Single Premium Endowment Plan- An Overview

We all know how insurance policies work, you pay a premium based on the policy terms and in the end, you get a maturity amount. The premium can be paid yearly or in some cases at once in a single payment. This endowment plan from LIC works on a similar mechanism, it comes with a single one-time premium paying option. Hence the name LIC Single Premium Endowment Plan. The premium is paid at the starting of the policy.

This is one of the best insurance plans to opt for as it allows you the benefit of long term cover. With this plan you get a sum assured at the end of the maturity period. And if something happens to you, then this plan ensures that your family gets the amount. This way, you can protect your family against any future financial crisis. And there’s one more thing that is enticing about this insurance plan. A person can avail of tax benefits under the Income Tax Act.

Read More: LIC Customer Login Process at Online Portal

Key Highlights of LIC Single Premium Endowment Plan

Here are a few major features of this insurance plan:

Eligibility of LIC Single Premium Endowment Policy

Here are the eligibility parameters for this insurance plan.

Entry age 90 days to 65 years

 

Minimum maturity age 18 years

 

Maximum maturity age 75 years

 

Policy term 10 years to 25 years

 

Sum assured Rs 50000 – No limit

 

Premium paying mode

 

One time

 

Benefits of LIC Single Premium Endowment Policy

There are a host of benefits that you can get with this single premium endowment policy. We’ll look to list them down below and further brief about them:

1. Maturity policy – Death Benefit

2. Maturity policy- Survival benefit

3. Policy loan benefit

4. Tax benefit

5. Discount on premium

For an amount between Rs 1 lakhs to Rs 1.95 lakhs- 18% of the sum assured

For an amount between 2 lakhs to Rs 2.95 lakhs- 25% of the sum assured

For an amount between Rs 3 lakhs and above – 30% of the sum assured

6. Policy surrender benefits

During the first year- 70% of the premium along with vested bonuses till the date of surrender

After a first year- 90% of the premium amount along with vested bonuses till the date of surrender

How to Buy LIC Single Premium Endowment Plan?

This insurance plan is pretty impressive and is something that offers protection to you and your family without shedding loads of money from your pocket. You can buy this insurance plan via an insurance agent or through LIC’s branch offices. All you need to do is follow the procedure, i.e. fill the application and submit the required documents. (We’ll talk about the required documents down below in another segment)

You also need to submit the premium amount based on the sum assured as preferred by you. The company will further process the form and provide you with the insurance policy. Another way to buy this insurance plan is by going onto the website of LIC and buying it online. This will save you the hassle of office round-ups and waiting in the queue.

Required Documents for LIC Single Premium Endowment Plan Application

You’ll need to submit a few documents as mentioned down below in the list:

How to claim for the LIC Single Premium Endowment Plan?

It’s a pretty easy process to claim the sum assured from LIC. All you need to do is intimate the insurance company about the claim and provide the required documents for verification. Once the verification is done by the insurance company they will process your settlement and you’ll receive the sum assured along with bonuses as per details mentioned in the policy.

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