The Single Premium Endowment Plan from LIC is a participating, non-linked endowment policy intended for people who would rather make a single investment than pay premiums on a regular basis. Policyholders benefit from risk coverage, savings growth with bonuses, and guaranteed maturity benefits with just one payment.
For Indians who want to build a safe financial corpus and life insurance but do not want to commit to long-term premiums, this plan is ideal.
Key Features of the LIC Single Premium Endowment Plan
- One-Time Payment: Make a single payment and benefit from coverage for the duration of the policy.
- Savings + Life Protection: Bonuses + Death Benefit + Maturity Benefit.
- Flexible Policy Term: Select the length of time that best fits your budget.
- Bonuses & Last Additions: Get the Last Additional Bonus and the Simple Reversionary Bonus.
- Loan Facility: After three months (after the free-look period), it becomes available.
- Surrender Anytime: The value of the policy is guaranteed when it is surrendered.
- Option for Settlement: Benefits from death and maturity may be received in full or in installments over a period of five, ten, or fifteen years.
- Tax Benefits: Section 10(10D) provides benefits, and Section 80C qualifies premiums.
Benefits in Detail
1. Death Benefit
- If the Life Assured dies during the policy term:
- For entry age < 50 years: Higher of Basic Sum Assured or 1.25 × Single Premium.
- For entry age ≥ 50 years: Higher of Basic Sum Assured or 1.10 × Single Premium.
- Along with vested bonuses and Final Additional Bonus (if any).
- For minors (less than 8 years old at entry), a single premium refund (not including taxes, additional fees, or rider premiums) is granted prior to the start of the risk.
2. Maturity Benefit
- On survival till maturity:
- Basic Sum Assured + Bonuses (Simple Reversionary + Final Additional Bonus, if any).
3. Surrender Value
- Can be surrendered anytime.
- Surrender Value = Higher of Guaranteed Surrender Value or Special Surrender Value.
4. Loan Facility
- Accessible after three months (or the free-look period expires, whichever comes first).
Why Indians Prefer This Plan
- Convenience: Make a single payment to maintain coverage.
- Perfect for professionals and NRIs: prevents late payments.
- Ensured corpus: Fit for long-term objectives (retirement, children’s education).
- The most reputable life insurance company in India is LIC Trust.
Real-World Examples
Case Study – Pune:
Suresh Patil (40 years) invested ₹5,00,000 as a single premium for a 20-year plan.
- He received ₹10,50,000 (sum assured plus bonuses) upon maturity.
- Regretfully, his family would still have received at least ₹6,25,000 (1.25× premium) + bonuses if he had died sooner.
Case Study – Delhi:
Anita Verma (30 years) chose a 25-year plan with ₹3,00,000 single premium.
- She received about ₹7,20,000 upon reaching adulthood, which she used to help pay for her daughter’s college tuition.
Expert Opinions
“The Single Premium Endowment Plan is a great fit for people who dislike paying recurring premiums. It gives peace of mind — a one-time payment secures your future and ensures your family is protected.”
— Rajiv Bansal, Financial Advisor, Delhi
“With guaranteed returns and lifelong protection, this plan is best for conservative investors. It’s particularly attractive for NRIs, self-employed individuals, and salaried professionals who receive lump-sum bonuses or savings.”
— Neha Kapoor, Wealth Planner
Frequently Asked Questions (FAQs)
Those who have lump sum savings, NRIs, or professionals looking for risk-free, one-time investment with protection.
Minimum 90 days (for minors), maximum 65 years.
Yes. You will get the higher of Guaranteed or Special Surrender Value.
Yes, after 3 months from policy issuance or free-look expiry.
Premiums qualify under Section 80C, and maturity/death proceeds are tax-free under Section 10(10D).
Your nominee gets Sum Assured on Death + Bonuses, depending on entry age and premium.
Final Word
For people who desire simplicity, security, and guaranteed savings, the LIC Single Premium Endowment Plan is the best option. You can secure your family’s future and avoid the headache of annual premiums by making a single payment. It’s a wise option for NRIs, risk-averse investors, and anyone with lump sum money wishing to accumulate a secure financial portfolio.
Apply for LIC’s Single Premium Endowment Plan now to safeguard your future with just one payment!