LIC One Time Investment Plan: How Does a Single Premium Policy Work?

LIC One Time Investment Plan: How Does a Single Premium Policy Work?
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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. 

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Conclusion

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?

  • What do you mean by a one-time investment?

  • What are the exclusions of the LIC single premium endowment plan?

  • What is the death benefit in the LIC single premium endowment plan?

  • Can I take a loan on Single Premium LIC?

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