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LIC Single Premium Endowment Plan is a type of insurance plan offered by Life Insurance Corporation of India (LIC) that provides comprehensive protection along with savings benefits to policyholders. This insurance plan is specially designed for individuals who are looking to invest in a single premium plan that provides financial security to their family in case of any unfortunate event. In this article, we will discuss the benefits, how to apply, who can apply, advantages, and an example of LIC Single Premium Endowment Plan.
Benefits:
Death Benefit: In case of death of the policyholder during the policy term, the dependents will receive an amount equal to the sum assured plus simple reversionary bonuses and final additional bonuses.
Maturity Benefit: If the policyholder survives till the end of the policy term, he/she will receive an amount equal to the sum assured plus simple reversionary bonuses and final additional bonuses.
Participation in LIC’s Profits: Policyholders are eligible to participate in LIC’s profits and receive simple reversionary bonuses.
Final Additional Bonus: A bonus amount may be declared in the policy year during death or maturity claim.
Loan: Policyholders can take a loan against the policy after the completion of 12 months from the commencement of risk.
High Sum Assured Rebates: Rebates are offered for higher sum assured options.
Eligibility:
• Minimum and maximum entry ages are 90 days and 65 years, respectively.
• Minimum and maximum ages for maturity are 18 and 75respectively.
• Mode of paying premiums: One premium or a lump sum at the start of the term.
• Ten years is the minimum policy term.
• 25 years is the maximum policy term.
• A minimum of Rs. 50,000 is assured.
• There is no maximum sum assured (sum assured can be raised or lowered in multiples of Rs.5,000).
How to apply:
1. Visit the nearby LIC branch or sign up for an account on the LIC website.
2. Select the desired Policy Term and Sum Assured.
3. Fill out the required details and pay the single premium.
4. Submit the necessary paperwork for verification.
Advantages:
• Single premium payment: This easy investing option only requires a single premium payment from policyholders at the beginning of the policy.
• Guaranteed Surrender Value: After the first year of the policy’s term, a guaranteed surrender value will be paid out.
• Loan facility: The ability to borrow money against a policy gives policyholders a flexible investment choice.
• Participation in LIC profits: Policyholders can earn additional money by taking part in LIC profits.
Example:
Suppose Mr. X has purchased the LIC Single Premium Endowment Plan with a sum assured of Rs.5,00,000 and policy term of 20 years. He makes a single premium payment of Rs.5,00,000 at the outset of the policy. In case of his death during the policy term, his dependents will receive an amount equal to Rs.5,00,000 plus bonuses. If he survives till the end of the policy term, he will receive an amount equal to Rs.5,00,000 plus bonuses.
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