LIC One Time Investment Plan: How Does a Single Premium Policy Work?
LIC One Time Investment Plan: What is It?
Everyone needs to secure their future, life is quite uncertain, and we never know what could happen at any minute. As a result, LIC brings a kind one-time investment plan where you are free from paying premiums for years to come before your policy matures. With the help of this one-time investment plan, you only have to make the payment once, and then you wait for the policy to mature to get your money out of it. These types of policies are commonly known as endowment plans which allow the policyholder to cover against the risk and also provide a guarantee of return which also includes the sum quoted plus the bonus amount, which gets updated every year till the time the policyholder takes it out.
LIC's one-time investment plan is a long-term plan which follows the principles of "invest your money once and then forget about it for a long time." The span of time allows the policy to increase the overall returns that a person is able to acquire at the end of the tenure.
Benefits Of Availing One Time Premium LIC Policy
Given below are the major benefits and features which a policyholder enjoys when they avail LIC one-time premium policy.
- One of the best things about a one-time premium LIC policy is that you need to pay the lump sum amount of the premium at the start of the policy. The remaining amount can be paid by the individual in the second installment.
- With this particular policy, an individual gets returns and protection against any form of untimely demise except suicide.
- One can take the policy for themselves or for someone else from 90 days of their birth to 65 years of age.
- If the policyholder survives till the end of the policy tenure or they had an earlier death, in both cases, the entire sum they have paid as a premium will be given back to the person or the nominee respectively. In addition to this, accrued bonuses would also be viable.
- Furthermore, the one-time investment plan allows users to participate in the profits made by LIC. As a result, the policyholder will be getting a simple Revisionary Bonus and a final additional bonus when the policy tenure ends.
- The sum you can pay as the premium amount starts at 50,000 Rs, and there is no upper limit to it. Anything more than the base amount needs to be in the multiples of 5,000 Rs.
- If the policyholder is younger than eight years, then risk cover for this specific plan will start 2 years after the initial investment of the policy. Or in some cases, it could also start from the anniversary of the coinciding policy.
- The government provides income tax benefits on premiums paid as per Section 80C and based on the claims received as per Section 10(10D) of the Income Tax Act.
Eligibility Criteria For One Time Investment Plan For LIC
Given below are the eligibility criteria for a one-time investment plan for LIC.
- Entry age for policyholder:- minimum 90 days to 65 years of age.
- Maturity:- minimum 18 years to 75 years.
- Policy terms:- 10 years to 25 years.
- Premium paying terms:- Single or once.
- Premium paying frequency:- Single or once
- Sum assured at the end of the tenure:- minimum 50,000 Rs to no upper limit.
Example Of How Does Single Premium Life Insurance Work?
Let's take two examples to give readers a better idea of how these policies work.
Example - 1
Mukesh invested in the one-time premium policy of LIC with a policy tenure of 30 years. The amount of premium he paid once was Rs 2,00,000. After the completion of 30 years, the amount he will receive from the policy is going to be around Rs 1,04,470, in addition to the initial investment of Rs 2,00,000 that he paid as the premium.
Example - 2
Seema invested in a one-time premium policy of LIC in the name of his son, who was recently born. She paid the one-time premium of Rs 1,00,00, and she chose 40 years as the policy tenure. Now, after 40 years, her son will get Rs 1,00,00, which is the initial premium amount paid by his mother. In addition to this, he will also get the assured sum of around Rs 53,975.
Feature Alert: Avail a Term Insurance Plan in a few simple steps here.
Protect yourself and your family with the help of Goal Based Planning from INDmoney. Seldom do we keep track of the extent of insurance protection available for our families. Do all this and a lot more with INDmoney. Check if your life insurance plan matches your life goals here.
So this is what LIC one time investment plan is all about. It is a great way to save money for your future with no risk and the added benefit of cover. This is a great way to invest a lump sum amount for the long term to fulfill your goals at various stages of life. Lastly, you only need to wait for one year to avail loan for potential liquidity. It is a simple LIC investment plan, and if you have some free money in your account, it is the best way to keep it secure for the future.
Is it a good idea to invest your money in LIC one-time investment plan in 2022?
With this one-time investment plan, you are able to acquire both life cover and assured returns even when you are paying the premium amount just once. The average claim settlement ratio is 98.2%, which allows it to be the best insurer in the country.
What do you mean by a one-time investment?
Most one-time investment plans are endowment plans, and they are often considered by the people because it provides an assured return to the investor and the insurance cover at the same time. In addition to this, the insurer also gets tax benefits, and you can even apply for riders to increase the coverage amount.
What are the exclusions of the LIC single premium endowment plan?
If the policyholder commits suicide within 12 months of purchasing the policy, the sum assured to them will not be paid to the nominee, and 90% of the premium paid by the policyholder will be sent back to the account by which the transaction of made in the first place. Also, the policy will be terminated after the return of payment has been done.
What is the death benefit in the LIC single premium endowment plan?
If the person dies before the commencement of the risk date, the nominee will only be getting the amount that is paid in the premium by the policyholder. If the policyholder dies after the commencement of the policy, they will get the sum assured, including the accrued bonus.
Can I take a loan on Single Premium LIC?
Yes, the government allows policyholders to avail of a loan facility from national banks. The amount of the loan will be dependent on two things, first, how small amount have paid as the premium, and second is your CIBL score.