The plan number of the LIC single premium endowment plan is 917. Earlier its name and plan number were LIC single premium endowment plan 817, then plan number changed to 917 and now it is 917.
Yes, this plan is an endowment plan. it provides risk cover to the customers and also contains saving components with a high yield of bonuses on deposited money. This plan participates in the profit of the company also. This plan is not linked to the equity market.
This is a plan which provides a Risk cover equals to the Sum assured
Maturity benefit of LIC single premium endowment plan 917:
On completing the full policy term the policy is assumed as mature. then all the benefits of maturity are deposited in the account of customers.
These benefits include the sum assured with a simple reversionary bonus and a final additional bonus is also added in the amount of maturity.
Participation in profit:
As mentioned above this plan is with a profit plan and it participates in the profit of the company. It means the above maturity benefits will be paid with additional profit amount and the maturity of LIC single premium endowment plan 917 policy calculated at the time of purchase will be little more than that value shown by multiplying bonus rates in calculations.
The death benefit of LIC single premium endowment plan 917:
In the case of death of Life assured, a Death claim is payable to the nominee.
a) On death before commencement of the risk, The amount of the single premium is returned back without any interest on it.
b) On death after commencement of risk, The amount of the sum assured with simple revisionary bonuses and final additional bonuses if any.
Where the amount payable is higher of the basic sum assured or 1.25 times of the single premiums.
Who is eligible to buy LIC single premium endowment plan 917:
The minimum age of entry is 90 days of age completed
The maximum age of entry is 65 years of age Nearest birthday.
The maximum maturity age is 75 years of age Nearest birthday.
The minimum sum assured amount is Rs 50,000 and the maximum sum assured is no Limit.
Policy term available in LIC single premium endowment plan 917:
The minimum policy term available is of 10 years and the maximum term is available for 25 years.
Riders available in LIC single premium endowment plan 917:
1: Accidental death and disability benefit rider.
2: Term Assurance Rider.
Modes of premium payment available in
LIC single premium endowment plan 917:
Grace period available in LIC single premium endowment plan 917:
No Grace period in this plan as it is a single premium plan.
Revivals in LIC single premium Endowment Plan 917:
NO lapsation will occur in this plan and No need to revive in the whole term of the policy.
Surrender in LIC single premium Endowment Plan 917:
The policy can be surrendered anytime after paying a premium for one year complete. The surrender value is reviewed by IRDA from time to time and updated by The Life Insurance Corporation of India.
The surrender value is always less than the premium paid by the customers. So, it is always a bad decision to surrender a policy.
The Guarantee surrender value of the plan is:
First year – 75% of the single premium paid
Next all years – 90% of the single premium paid
Loan available in LIC single premium Endowment Plan 917:
The customer can get a loan against his policy after the policy attains the loan value after one year. The loan amount will depend upon the surrender value of that policy, the loan value will be the 80% of the surrender value calculated.
Freelook period in LIC single premium Endowment Plan 917:
A free look period of 15 days is available. This period is also called a cool off period and It is started from the day when the policy document is issued to the customer. If a customer is not agreed or not satisfied with the terms and conditions of the policy then he can cancel his policy and take the premiums back but within 15 days. the stamp charges and Taxes will not be returned.
The customer can claim for tax Redemption on the premium paid every year for this policy under the section of 80C of the Income Tax Department
The maturity amount is also exempted from income tax under section 10D
Conclusion and illustration:
For example, If a person buys any policy of sum insured 500,000 then he has to pay a complete 500000 or more than it, in the whole policy term.
But in this plan customer pays a less than the sum assured and get the bonuses on the complete sum assured.
Here we will do three calculations with all the options on 1 lakh sum assured and keeping in the mind the age of customer’s 35 years
Calculation one with a policy term of 10 years of the policy term.
Here the customer will pay a one time amount of 77,387 on the first year and will get 1,41,000 on the 10th year as maturity amount.
Calculation second with a policy term of 18 years of the policy term.
Here the customer will pay a one time amount of 59,340 on the first year and will get 1,85,300 on the 18th year as maturity amount.
Calculation third with a policy term of 25 years of the policy term.
Here the customer will pay a one time amount of 48,013 on the first year and will get 2,60,500 on the 10th year as maturity amount.
Hope you all get the basic ides of the plan and about its merit and demerits. This article will make it easy to make decisions about the purchase of this plan of LIC single premium Endowment Plan 917.