Under LIC single premium policy, premium has to be paid only once. The maturity of this policy is 10-25 years. Its maximum maturity age is 75 years.
Today we will know about such a scheme of LIC which is a single premium policy. This policy matures in 10-25 years, so comparisons with fixed deposits are a must. On a comparative basis, it gives far better returns than FDs. Life Insurance Corporation has designed this scheme especially keeping in mind those who are going to earn a lump sum. This earning can be on maturity of investment, on retirement, as a gift.
The table number of this policy is 917. Talking about the eligibility, the minimum entry age is 90 days and the maximum entry age is 65 years. Its maximum maturity age is 75 years. The policy term is of 10-25 years. The premium paying term is single premium. Two types of riders are also available with this policy. The first rider is the Accidental Death and Disability Benefit Rider. The second rider is the New Term Assurance Rider. Talking about tax benefits, on paying premium, you get the benefit of deduction under 80C. The death benefit is completely tax free under 10(10D), although it is taxable on maturity.
The minimum sum assured for this policy is Rs 50,000. There is no limit on Maximum Sum Assured. The sum assured above 50 thousand can be in multiples of 5000. Talking about risk coverage, if the age of the policyholder is more than 8 years, then the risk coverage starts as soon as the policy is taken. If the age of the child is less than 8 years, then the risk coverage will start from two years after taking the policy or whichever is earlier after the completion of 8 years.
Talking about the maturity and death benefit under this policy, it is available in two options. Under the first option, the insured gets the full benefit of maturity simultaneously. In the event of his death, the nominee gets the benefit. Under the second option, the insured can avail the maturity amount as EMI on monthly, quarterly, half yearly and yearly basis for 5, 10 or 15 years. On his death, this benefit will be given to the nominee. The insured will also have the option to take some part in lump sum and the rest in installments.
If we talk about this policy, then on taking the rider, the nominee will get the addition benefit on normal death and accidental death. According to a calculation, at present, if Rs 2.4 lakh is deposited in FD, then after 25 years at the rate of 6 per cent, about Rs 10.20 lakh and at the rate of 7 per cent will get Rs 12.90 lakh. On the other hand, investing Rs 2.4 lakh in this policy gives Rs 13.62 lakh after 25 years. If the policyholder dies in the 24th year, then the nominee will get 12.87 lakhs on maturity. If he dies in an accident and the rider is taken, then the nominee will get Rs 17.87 lakh.