LIC’s SINGLE PREMIUM ENDOWMENT PLAN (TABLE NO. 817)

  Table no. 817

(Single Premium Endowment Plan)

LIC’s single premium endowment plan is introduced with effect of 1st Jan 2014. This is single premium conventional with profit Endowment assurance plan.

Eligibility conditions and restrictions:

1)  Minimum Age at entry for Life Assured   : 90 days (completed)

2) Maximum Age at entry for Life Assured   : 65 years (nearest birthday)

3) Minimum Policy Term                               : 10 years

4) Maximum Policy Term                              : 25 years

5) Minimum age at Maturity                          : 18 years (Completed)

6) Maximum age at Maturity                         :  75 years (Nearest Birthday)

7) Premium payment mode                         : Single Premium Only

8) Minimum Sum Assured                           : Rs 50,000/-

9) Maximum Sum Assured                          : No Limit

The Sum Assured shall be in multiple of Rs 5000/-

Note: Age at entry for the life assured is to be taken as age nearest birthday except for the minimum age at entry i.e. 90 days

Date of commencement of risk : In case the age at entry of the life assured is less than 8 years, risk under this plan will commence either 2 years from the date of commencement of from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, which ever is earlier. For those aged 8 years or more, risk will commence immediately.

Benefits:

a) Benefits payable on maturity

On survival to the end of the policy term, sum assured along with vested simple reversionary bonuses and final additional bonus shall be payable.

b) Benefits payable on death

On Death of life assured on or after the commencement of risk cover

Sum assured along with vested simple reversionary and final additional bonus will be payable.

On death of life assured before the commencement of risk

Return of single premium excluding taxes and extra premium if any shall be payable.

Benefits to people who buy policies with HIGH SUM ASSURED (per thousand Sum Assured) is as under:

Sum Assured (S.A.)                  Rebate (Rs)

50,000 to 95,000                         Nil

1,00,000 to 1,95,000                  18%o S.A.

2,00,000 to 2,95,000                  25%o S.A.

3,00,000 and above                   30%o S.A.

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Surrender Value:

The policy can be surrender any time during the policy term subject to realization of premium cheque.

Guaranteed Surrender Value:

The guaranteed Surrender Value shall be as under:

First Year : 70% of the single premium excluding taxes and extra premium, if any

Thereafter: 90% of the single premium excluding taxes and extra premium, if any

In addition, the surrender value of vested simple reversionary bonuses, if any , shall also be payable, which is equal to vested bonus multiplied by surrender value factor applicable to vested bonuses

Loan:

Loan facility is availability under this plan after completion of one policy year subject to following conditions:

a) The maximum loan that can be grafted as a percentage of surrender value for different policy terms and the policy year in which the loan applied are as under:

Policy Year

Policy Term

Upto 15 years

16 to 20 years

21 years & above

1

55%

40%

30%

2

60%

45%

30%

3

65%

50%

35%

4

75%

55%

40%

5

80%

60%

40%

6

90%

65%

45%

7

90%

75%

50%

8

90%

80%

55%

9

90%

90%

60%

10

90%

90%

65%

11

90%

90%

75%

12

90%

90%

80%

13 & Above

90%

90%

90%

b) The rate of interest to be charged for the loan amount would be determined from time to time by the corporation

c) No foreclosure shall be taken under this plan even if there is a default in payment of loan interest. However, any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.