917

Endowment plans are insurance policies which provide a cover against risk and also give the guarantee of return that generally includes the return of the sum quoted plus the bonus amount which may be specified every year which is also called reversionary bonus and art of the policy term which is called the terminal bonus. Depending on the particulars of the policy and time period selected, the amount can be quoted. These policies are basically for a long time span as they help in increasing the overall returns which a person gets at the end of the policy tenure. Even rebates are there on single premium policy if the higher sum is quoted.

These plans are actually recommended for everyone because they are a full combination of one’s life insurance plus they serve the investment purpose. These plans even offer tax benefits under The Income Tax Act. There are riders as well which may increase the amount of cover that a policyholder has by protecting the person from risks which are not covered in the main policy.

It is basically traditional endowment with death and maturity benefits to the policyholder. Even bonus facility is given along. In this plan, the premium is paid in the starting which is paid in a lump sum amount. It serves the investment purpose and even secures you if one faces an untimely demise. There is a sure short return on them this means these plans are secure and provides people with financial benefits. These plans including the LIC'S single premium plan provides insurance cover of the policyholder which means that if any unfortunate incident takes place to the insured than a lump sum amount will be given to the family. So if the person is the bread earner of the family, there might not be a problem if this plan is availed. Even rebates are offered by LIC single premium policy. One can even avail loan on these plans. Under the Income-tax Act, tax benefits are there for the people who take these policies.

• This policy can be taken for anyone between 90 days to 65 years of age.

• If the person survives till the end of the policy tenure or an earlier death takes place.

• The entire sum quoted along with accrued bonus would be given to the policy terminates.

• The policy has participation in the profits of LIC and offers Reversionary Bonus and Final Addition Bonus if there are any.

• Sum assured in this policy starts from a minimum of Rs 50,000.

• These are no maximum limit for quoting the amount but the sum has to be in multiples of 5000.

• Minimum age for this plan is 90 days and can go up to 65 years.

• Maturity age for this plan is minimum 18 years and maximum could be 75 years. If the person insured is less than 8 years of age than the risk cover under this plan will commence from 2 years after the start of the policy or from the anniversary of the LIC single premium policy coinciding with or immediately following the date of the person turning 8 years of age.

• Policy term may be from ten to twenty years.

Maturity Policy:

In Case Of Survival : If the policyholder survives till the end of the policy tenure then the sum quoted along with the simple reversionary bonus and final addition bonus if any will be given to the insured person as the benefits of maturity of the policy. Each year simple reversionary bonus is declared as a percentage of the quoted sum under this policy. The sum assured is not increased because of the bonus amount. At the end of this policy, the final additional bonus may be declared if the person insured has paid all the premiums on time. It is a kind of appreciation given by the company to the policyholder.

In Case Of Death : If the policyholder dies within the period of the policy tenure and he has just paid a single premium, then, only that would be given to the nominee. This is because the person has died before the commencement of risk date. If the policyholder dies after the commencement of risk date then the sum assured plus accrued bonus would be paid as death benefit. Discount is even available if the sum assured is huge.

Loan Benefit : After the first policy year, one can avail loan on the policy.

Income Tax Benefit : Income tax benefits for the premium paid and the claims received are given to the policyholder.

This policy has a guaranteed surrender value. If the insured person surrenders the policy within the first year then 70% of the premium will be returned. If the policyholder surrenders the policy within two years of the policy or more than that, 90% of the premium will be returned to the person. For the vested reversionary bonus insured person is also eligible.

Age Limit:

There is no grace period for this policy however; a Free look period is given for LIC Single Premium Endowment Policy (Plan No: 917). This is a period in which if you are not satisfied with the policy then you can cancel it. Provided this is done in the 15 days from the receipt of policy documents. This can be cancelled only if there is no claim taken for the policy.

This plan is a profitable one, especially for the investors who are looking for protection cum saving plan. As a company, LIC is a trusted one so investing in their policy is safe with almost no risk.