Monday, July 28, 2014

Single Premium Endowment Plan - 817

LIC's Single Premium Endowment Plan : is a savings cum protection plan. The plan provides financial protection against death during the policy term with the provision of payment of lump sum at maturity on survival. This plan also takes care of liquidity needs through its loan facility. 


Features

  • Single Premium Endowment Plan
  • Life risk cover for the life insured
  • Savings Oriented Plan
  • Loan facility available after completing one policy year
  • Moderate Premium, high bonus rate

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.

Benefits:

On Death before the commencement of risk

If the policy holder dies before the commencement of risk, the nominee will receive the single premium paid (excluding the service tax and extra premium).


On Death after the commencement of risk

If the policy holder dies before the commencement of risk, the nominee will receive following:

1. Basic Sum Assured
2. Revisionary Bonus
3. Final Additional Bonus (if any)


On Maturity

If the policy holder survives the term of the plan, he/she will receive:

1. Basic Sum Assured +  Revisionary Bonus  +  Final Additional Bonus (if any)



Example

If any one at age of 25 Years with Sum Assured of 1,00,000 for the period of 20 years need to pay

Single Premium : 52,765/-
Sum Assured     :  1,00,000/-


Tax benefit

She will only get a tax exemption of Rs 10,000/- (10% of sum assured) irrespective of the fact that she is paying premium of Rs 52,765/-

On Death
If policy holder dies during the policy term, her nominee will receive the sum assured along with the accrued bonuses.



1,00,000/- ( Sum Assured )
   84,000/- ( Bonus accrued)
     4,000/ -( Final  Additional Bonus)


Total  Around  : 1,88,000/- 


On Maturity
If policy holder survives the policy term the  will receive the sum assured along with the accrued bonuses. 


1,00,000/- ( Sum Assured )
   84,000/- ( Bonus accrued)
     4,000/ -( Final  Additional Bonus)

Total  Around  : 1,88,000/-  

 

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