Single Premium endowment Plan

LIC's Single Premium Endowment Plan is Insurance plan provides savings together with financial protection. It is one time premium paid plan for the whole policy term. The combination of savings and financial security provides the Assured Amount at the end of the selected policy term of her/his survival with the provision of payment on his/her death during the policy term.

Death Benefit:

  • On death during the policy term before the date of commencement of risk: Return of single premium excluding service tax and extra premium, if any, without interest.

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

  • On death during the policy term after the date of commencement of risk: Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any.

Maturity Benefit:

Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.

  • Simple Reversionary Bonus: The policy shall take part in profits of the Life Insurance Corporation and shall be eligible to get Simple Reversionary Bonuses declared as per the experience of the Corporation.
  • Final (Additional) Bonus: Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity on such terms and conditions as may be declared by the Life Insurance Corporation from time to time.

Eligibility Conditions and Other Restrictions:

  • Age Eligibility: 90 days to 65 years
  • Policy Term: 10 years to 25 years
  • Premium Payment Mode: Single Premium only.
  • Sum Assured: Rs.50, 000 to No limit

Sum Assured will be in multiples of Rs.5,000 /- only.


LIC India offers some benefits to the policyholders who select high sum assured of the plan.

High Sum Assured Rebate
Sum Assured (S.A) Rebate
50,000 to 95,000 NIL
1,00,000 to 1,95,000 18% of S.A
2,00,000 to 2,95,000 25% of S.A
3,00,000 and above 30% of S.A


Loan facility is available for this plan after the first policy year and subject to the terms and Conditions of Life Insurance Corporation that may specify and vary any time.

Surrender Value:

If the policy holder terminates the policy before the end of the policy term or before the maturity. It is called Surrender.

The amount will be payable to the policy holder after the termination of policy that is Surrender Value is available under this plan.

The Guaranteed Surrender Value allowable shall be as under:

  • First year: 70% of the Single premium excluding service tax and extra premium, if any
  • Thereafter: 90% of the Single premium excluding service tax 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 bonuses multiplied by the surrender value factor applicable to vested bonuses. These factors will depend on the policy term and policy year in which the policy is surrendered.

The Corporation may, however, pay Special Surrender Value as applicable as on date of surrender provided the same is higher than Guaranteed Surrender Value.


Taxes, if any, shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of tax payable as per the prevailing rates shall be payable by the policyholder on premiums including extra premiums, if any.

The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan.

Cooling-Off Period:

15 days are the cooling-off period for this plan. If the policyholder is not satisfied with the policy, the policy may be given back to the LIC Corporation within 15 days from the policy receipt.

Then the Corporation shall cancel the policy and return the payment of first premium after deduction of premium for the period on cover, charges for medical examination, special reports, if any, and stamp duty.


If Life Assured commits suicide within one year from the date of risk commencement, the policy will be cancelled and cannot claim death benefit.

LIC will return the extent of 90% of the single premium paid excluding taxes and any extra premium paid.