- About Coverfox
LIC single premium endowment plan offered by LIC is a participating, non-linked endowment plan. Full premium in the plan is paid before the commencement of the policy. The plan offers twin benefit of life protection and savings in a single plan.
Loan can be availed in the policy just after one year of policy term
This dual combination of protection and saving ensures the family always is in a good financial position at all times. If the policyholder dies then it pays out the sum assured plus bonuses, if any as per the terms and conditions. If the policyholder survives the term it gives out lump sum payout as per the maturity benefit.
a) Death before date of commencement of risk : If the death of the policyholder occurs before the date of commencement of risk then death benefit pay-out will be return of single premium excluding service tax and any extra premium paid without interest.
b) Death during the policy term and full coverage : If the death of the policyholder occurs during the policy term with full coverage then in that case death benefit will be Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
Maturity Benefit: The maturity benefit will be sum assured along with simple reversionary bonuses and Final Additional bonus, if any. It will be paid in lump sum on survival and the policy will cease.
Participation in Profits: The plan is a participating endowment plan, meaning it will accumulate Simple Reversionary Bonuses and final additional bonus, if any.
Rebates for choosing high sum assured : The plan offers a discount on premium payable for choosing a higher sum assured. The rebate percentage is mentioned in the below table as per the sum assured category.
|High Sum Assured Rebates:|
|Sum Assured (S.A)||Rebate|
|50,000 to 95,000||Nil|
|1, 00,000 to 1, 95,000||18% of sum assured|
|2, 00,000 to 2, 95,000||25% of sum assured|
|3, 00,000 and above||30% of sum assured|
|Minimum Sum Assured||INR 50,000|
|Maximum Sum Assured||No Limit|
|The Basic Sum Assured should be multiples of INR. 5000 only|
|Minimum entry age||90 days (completed)|
|Maximum entry age||65 years (nearest birthday)|
|Maximum Maturity Age||75 years (nearest birthday)|
|Minimum Term||10 years|
|Maximum Term||25 years|
|Premium payable mode||Single premium payment mode only|
Free Look period : Free look period of 15 days is offered in this plan from the date of receipt of the policy bond. The policy can be returned to the corporation stating the reasons of objection. On receipt of the same, the policy will be cancelled and amount of premium paid will be returned minus the expenses incurred towards the proportionate risk premium for the period of cover, charges for medical examination, special reports, if any, and stamp duty.
Surrender Value : The plan will accumulate a surrender value as per the following terms:
If the policyholder surrenders the policy in the first year then the surrender value will be 70% of the single premium excluding taxes and extra premium paid
If the policyholder surrenders the policy after the first year then the surrender value will be 90% of the single premium excluding taxes and extra premium paid The surrender value of vested simple reversionary bonuses, if any, shall also be payable as per the terms and conditions mentioned in the policy document.
Loan on Policy : A loan can be availed on policy after completion of the first year of the policy term as per the accumulated surrender value and the company’s terms and condition which may be subject to change from time to time.
Suicide: If the policyholder commits suicide within 12 months from the date of start of policy then no death benefit amount mentioned in the policy is payable. The company will only return 90% of the single premiums paid excluding any taxes and extra premium paid if any.
The LIC single premium endowment plan is a single premium plan offering life protection and savings along with participating in corporation's profit. The plan is good for people who want to invest lump sum money for a long-term period to fulfil life stage goals like children education and marriage. The plan also offers loan after just one year of policy term for any liquidity needs. Overall it a simple to understand single premium endowment plan offered by ever reliable Life Insurance Corporation of India.