LIC single premium endowment plan 917 is a non–linked plan offered by LIC. The LIC single premium endowment plan 917 provides the benefits of the savings plan. It works for dual purposes. However, the LIC single premium endowment plan aims to protect the family without the insured. It even helps in fulfilling their financial needs. The other benefit of LIC plan 917 is that it provides a bonus on policy terms.
Moreover, if the insured dies in before the plan’s maturity, then the nominee will be given the policy amount and other benefits and bonuses. However, the bank will pay off the policy payment to the insured’s family according to the terms and conditions of the plan. This article will provide brief information about the LIC single premium endowment plan, its features, and details.
|The launch date of LIC single premium endowment plan 917||1st February 2020|
|Plan type||Non–linked, participating, individual life assurance, savings plan|
LIC Single Premium Endowment Plan 917 Eligibility
Eligibility criteria for LIC endowment plan 917 are:
|Minimum age for entry||90 days ( completed )|
|Maximum entry age||65 years|
|Minimum policy term||Ten years|
|Maximum policy term||25 years|
|Minimum sum assured||50,000 INR|
|Maximum sum assured||No limits|
|Premium payment mode||Single premium mode|
|Maximum maturity age||75 years|
LIC Single Premium Endowment Plan 917 Features
Some of the critical elements of LIC single premium endowment plan 917 are:
- The insured gets the reversionary bonus and the sum assured at the plan’s maturity. Moreover, the plan will also provide death, maturity, and rider benefits.
- You have to pay a premium once in the whole payment period. However this plan also provides premium discounts, but these are only available when you pay for high-level coverage for your plan.
- The LIC plan 917 even provides funds for a loan during the policy period.
- If the policyholder wants to call off the plan, the bank will provide you surrender amount on a compulsory basis.
LIC Single Premium Endowment Plan 917 Benefits
LIC single premium endowment plan 917 is very new in the market. However, it provides various benefits to its policyholders. Some of the benefits offered under this plan
1. Death Benefits
Death benefits are provided to the family when the policyholder dies. Banks offer this benefit to the nominee. If the person made it to the end of the policy, then all the death benefits are provided to him only. However, if the policyholder dies before the maturity of the plan, then the beneficiary is responsible for death benefits.
2. Maturity Benefits
Maturity benefits are provided to the policyholder when the policy gets matures. The banks offer maturity benefits at the end of the plan. However, in some cases, if the insured dies in between the policy’s maturity, then the maturity benefits, along with other bonuses, are provided to the nominee. However, if the policyholder survives till the end of the maturity, then the lump sum amount of the sum assured, loyalty bonuses, and other benefits are also provided. Hence, after this, the policy gets terminated.
3. Participation in Profits
The LIC single premium endowment plan 917 provides you participation in profits. Moreover, you’ll be provided with a simple reversionary bonus. Usually, banks offer these benefits at the end of the plan. However, in case of early death, these bonuses are provided to the nominee of the plan.
How Does the LIC Single Premium Endowment Plan 917 Work?
LIC single premium endowment plan 917 is a healthy endowment that provides savings plan services. See the example below to understand how the LIC single premium endowment plan works.
There is an officer named Mr. Kumar. He is 35, and he wants to buy an appropriate plan for about 20 years with a sum of 2,00,000 INR. However, the present tax rate in the market is 4.5%. According to this, MR. Kumar has to pay the single premium of the policy, which will be 1,05,200 INR + 4734 INR = 1,09,934 INR
What will be the situation if Mr. Kumar dies within the policy period, let’s suppose after ten years?
If Mr. Kumar dies after ten years of the policy, then under the guidelines of the LIC, the bank will provide a simple reversionary bonus and a final additional bonus.
The sum assured is 2,00,000
How can we Calculate Simple Reversionary Bonuses?
Suppose that the bank declares a bonus of 45 INR for every 1000 of the sum assured per year.
However, a simple reversionary bonus will be = 45 INR on every sum assured for almost ten years. i.e. 45 * 200* 10 = 90,000 INR
Final additional bonuses isis provides when the plan ends, including one-time benefits. However, the last additional premium is calculated for 20 INR per 1000 sum assured.
Therefore, final additional bonus = 20 * 200 = 4000 INR
Hence, the bank will provide the nominee with the following amount – 2,00,000 + 90,000 + 4,000 = 2,94,000
What will be the situation if Mr. Kumar survives till the policy end?
If Mr. Kumar survives until the policy’s maturity, the plan will provide him the sum assured, a simple reversionary bonus, and final additional bonuses.
The sum assured is 2,00,000
Simple reversionary bonuses = Rs. 45 x 200 x 20 = Rs. 1,80,000
Final additional bonuses = 20 X 200 = Rs. 4000
However, the value paid to Mr. Kumar is 2,00,000 + 1,80,000 + 4,000 = Rs. 3,84,000
As we have already calculated, if Mr. Kumar dies before the policy’s maturity, he will be offered Rs. 2,94,000. However, if he survives until the policy ends, he’ll get Rs. 3,84,000.
LIC Single Premium Endowment Plan 917 Details
LIC endowment plan provides various features to its policyholders. However, the LIC 917 plan details are listed as
1. Single Premium Plan
The LIC single premium endowment plan is a single payment plan which pays premiums only once during the policy period. Usually, the premium is paid before the commencement period in LIC single premium endowment plan.
2. Free Look Period
The free look period helps the policyholders to test the policy they’ve bought. If the policyholder does not like the plan, then they can return the plan. After 15 days, if you do not want to continue with the plan, then the plan gets automatically terminated.
3. Guaranteed Surrender Value
Surrender value refers to that feature in which if the policyholder wants to end the policy, then some of the amounts of the first premium will be refunded to the policyholder. Every LIC plan provides the feature of surrender value in their plans.
4. Tax Benefits
In LIC single premium endowment plan, the tax is payable on the premium. However, the investment made in LIC is usually tax-free. At the same time, you have to pay the tax once on the tip.
A rebate is provided to the policyholders when they pay off the payment amount before the date. Usually, the refund may differ on the amount of the sum assured.
|50,0000 – 95,0000||Nil|
|1,00,000 – 1,95,000||18 % of the sum assured|
|2,00,000 – 2,95,000||25% of the sum assured|
|3,00,000 and above||30% of the sum assured|
LIC single premium endowment plan is a term insurance plan that usually lasts 10 – 25 years. The policyholder can choose the policy according to their requirements. However, if we talk about LIC single premium endowment plan 917, then it is recently launched by LIC that benefits its customers with the benefits of saving and endowment facilities. Above, we have discussed all the essential information about LIC single premium endowment plan 917, its features, LIC 917 plan details, etc.
LIC Single Premium Endowment Plan 917 – FAQs
What is the surrender value of the 917 plan?
Ans. The surrender value for the 917 plan is 70% of the single premium for the first policy year or 90% after the first policy year and the percentage of accrued bonus.
Can I claim a deduction for a single premium endowment plan?
Ans. The maximum deduction limit we can claim on premium payments is up to 1.5 lacks.
Is LIC plan 917 taxable?
Ans. Yes, the LIC 917 is taxable.
How is the LIC maturity value calculated?
Ans. The maturity value of LIC is calculated by adding the sum assured along with other benefits.
What is the formula for LIC maturity?
Ans. The formula for the LIC maturity is the (sum assured + bonuses + final additional bonuses).