This policy can be given to a person from the age of 90 days to the age of 65 years. This policy can be taken for a policy term of 10 years to 25 years. In this, the maximum age of policy maturity is 75 years. The name of this policy of Life Insurance Corporation (LIC) is Single Premium Endowment Plan. In this policy, the premium is to be paid once and the benefit is available up to several times on maturity. Hence the policy has been compared to Fixed Deposit (FD). In FD, you deposit a lump sum amount, on which you get a large amount after maturity. The same thing is with this single premium endowment plan of LIC.
This policy should be taken by those three types of people which are being mentioned. First, those people whose income keeps on fluctuating or who get big money on any special event. If such people want, they put 25 thousand to 2-5 lakhs in this single premium policy. Others are people who have regular income but want to be free from the hassle of paying premiums again and again. If a big amount comes in the hands of such people or any investment plan is completed, then they deposit money in a single premium plan. Thirdly, those people who have got a huge amount of inheritance can also deposit money in this policy. If you are one of these three types of people then you can try Single Premium Endowment Plan.
Who can take the policy
This policy can be given to a person from the age of 90 days to the age of 65 years. This policy can be taken for a policy term of 10 years to 25 years. In this, the maximum age of policy maturity is 75 years. That is, the policy will be taken in such a way that the age of maturity is not more than 75 years. There is a minimum sum assured of Rs 50,000 and no maximum limit. If you take a policy for a child, the coverage will start when he/she is 8 years of age or more. If the age of the child is less than 8 years then the coverage will start after 2 years of taking the policy or after the child reaches 8 years of age.
Understand in easy language
Let us understand this policy with an example. Rohit whose age is 30 years, he takes this policy for a term of 25 years. If Rohit takes a policy of Sum Assured of 2 lakhs, then his single premium will be Rs 93,193 with GST. When the policy’s 25 years are completed, then Rohit will get maturity something like this. He gets Rs 2,00,000 as sum assured, Rs 2,55,000 as bonus and Rs 90,000 as final additional bonus. In this way the total amount will be Rs 5,45,000. It can be seen here that Rohit deposited Rs 93,193 as single premium and he would get around Rs 5.5 lakh on maturity. It is beneficial on saving less than 4 thousand per annum.
What is available in death benefit
If unfortunately Rohit leaves the world during the policy term then his nominee will get the benefit of death benefit. Under this, the nominee will get Rs 2,00,000 of the sum assured. After this you will get bonus money. The amount of bonus will depend on the number of years the policy has run. If the policy has run more, then more bonus will be added to the sum assured. For example, if Rohit passes away in the 16th year of the policy, then his nominee will get Rs 2,00,000 as sum assured, Rs 1,38,000 as bonus and Rs 5000 as final additional bonus. In this way, Rohit’s nominee will get Rs 3,43,000 as a total amount.