LIC Single Premium Endowment Plan 817 Calculator
UIN: 512N283V01
Launch Date: 1st January 2014
Withdrawal Date: 1st February 2020 WITHDRAWN
Plan Type: Single Premium Endowment (Non-Linked Participating Plan)
Calculate Premium & Maturity
Maturity Benefit Breakdown
| Component | Amount |
|---|
• Actual maturity amount depends on declared bonuses and Final Additional Bonus (FAB).
• Maturity proceeds may be taxable under Section 10(10D) if premium exceeds 10% of sum assured.
• Death Benefit: Sum Assured + Accrued Bonuses.
• Loan facility available after first year.
The LIC Single Premium Endowment Plan (Plan No. 817) was a popular life insurance scheme launched by the Life Insurance Corporation of India (LIC) on January 1, 2014. This plan combined the benefits of insurance protection with savings, making it an ideal choice for those who preferred a single lump-sum payment instead of recurring premiums. It is designed for people who want to secure their future while also getting a reliable savings option.
What is LIC Single Premium Endowment Plan 817?
LIC Single Premium Endowment Plan 817 is a non-linked, participating endowment insurance policy where you pay a one-time premium upfront. The plan offers financial protection for a selected policy term and provides a lump sum amount on survival till maturity or death during the term. Being a participating plan, it is eligible for bonuses declared by LIC.
The unique aspect of this plan is the payment of the premium in a single installment — this is beneficial for those who want to avoid regular premium payments but still desire insurance coverage coupled with savings.
Key Features of LIC Single Premium Endowment Plan 817
- Single Premium Payment: Pay the premium only once at the start of the policy.
- Policy Term Flexibility: Choose a policy duration between 10 to 25 years according to your financial goals.
- Sum Assured: Minimum sum assured starts from Rs. 50,000 with no upper limit.
- Age Limits:
- Minimum entry age: 90 days
- Maximum entry age: 65 years (nearest birthday)
- Maturity age: Minimum 18 years, Maximum 75 years (nearest birthday)
- Bonuses: Eligible for reversionary bonuses and final additional bonus declared by LIC.
- Loan Facility: Policyholders can avail loans against the policy after completing one year.
- Surrender Value: The policy offers a surrender value after one year if you wish to exit before maturity.
- Accidental Death Benefit Rider: Optional rider available by paying an additional premium for extra coverage.
- Tax Benefits: Eligible for tax deduction under Section 80C and tax exemption under Section 10(10D) subject to conditions.
Launch and Withdrawal Dates
- Launch Date: January 1, 2014
- Withdrawal Date: February 1, 2020
The plan was available for new policyholders for over six years. Although the plan has been withdrawn, it remains relevant for current policyholders and those seeking to understand LIC’s product offerings for savings and insurance.
How Does the LIC Single Premium Endowment Plan Work?
When you invest in this plan, you pay a single premium upfront based on your age, sum assured, and policy term. During the policy term:
- In case of the unfortunate death of the policyholder, the nominee receives the sum assured plus accrued bonuses and possibly an additional bonus.
- If the policyholder survives the policy term, they receive the maturity amount, which is the sum assured plus bonuses and final additional bonuses declared by LIC.
The plan provides financial protection and savings in one policy, which can help in future financial planning like funding education, marriage, or retirement.
Understanding the LIC Single Premium Endowment Plan 817 Calculator
The LIC Single Premium Endowment Plan 817 Calculator is an online tool designed to help prospective policyholders estimate the maturity amount or premium payable based on their input parameters such as age, sum assured, and policy term.
What Can the Calculator Do?
- Calculate Premium: Based on age, sum assured, and term, the calculator estimates the single premium amount to be paid.
- Calculate Maturity Amount: Computes the expected maturity value factoring in bonuses declared and policy term.
- Estimate Death Benefits: Shows the payout to nominees in case of death during the policy term.
By using the calculator, you can make an informed decision on the plan purchase and understand the investment required and the maturity benefits you might receive.
How to Use the Calculator?
- Enter your age at policy commencement.
- Select the policy term between 10 and 25 years.
- Enter the desired sum assured amount.
- The calculator instantly provides:
- The single premium amount payable.
- Projected maturity amount based on LIC’s declared bonus rates.
- Expected death benefit payout.
This tool helps you quickly evaluate if the plan fits your financial needs without complex calculations.
Benefits of the LIC Single Premium Endowment Plan 817
- Combination of Insurance and Savings: Protects your family financially and provides savings returns.
- Single Premium Payment: No need to worry about missing premium payments.
- Bonuses: Potential to earn bonuses that increase the maturity amount.
- Loan Facility: Access loan against the policy for emergency funding without surrendering policy.
- Surrender Value: Option to surrender the policy after some years and receive a percentage of the premium.
- Tax Advantages: Premiums eligible for deduction under Section 80C; maturity proceeds exempt under Section 10(10D) subject to conditions.
- Financial Discipline: Encourages one-time investment with disciplined savings.
Eligibility Criteria for LIC Single Premium Endowment Plan 817
- Minimum entry age: 90 days completed.
- Maximum entry age: 65 years.
- Policy term: 10 to 25 years.
- Minimum sum assured: Rs. 50,000.
- No maximum limit on sum assured.
- Medical examination may be required based on sum assured and age.
It is essential to carefully verify eligibility before applying for the policy.
Tax Treatment Under LIC Single Premium Endowment Plan
- Premium paid qualifies for deduction under Section 80C of the Income Tax Act but only up to 10% of the sum assured.
- Maturity amount may be taxable if the premium paid exceeds 10% of the sum assured.
- Death benefit (Sum Assured + bonuses) is exempt from tax.
Tax implications may vary; consulting a tax advisor is recommended for personalized guidance.
Surrender and Loan Benefits
Surrender Benefits
If you surrender the policy before maturity, you may receive a surrender value depending on:
- The number of years the policy has been active.
- Accrued bonuses.
- Guaranteed surrender value as per policy terms.
Keep in mind surrendering usually comes with penalties and may result in lower returns.
Loan Facility
After the first policy year, you can avail loan against the policy’s surrender value.
- Loan amount can be up to 90% of surrender value.
- Lower interest rates compared to unsecured loans.
- Loan does not affect the death benefit; outstanding loans plus interest are deducted from maturity or death proceeds.
Important Considerations Before Buying
- Being a single premium plan, the initial payment is high, so ensure affordability.
- Returns depend on declared bonuses, which may vary year to year.
- Tax treatment of maturity proceeds could be less favorable compared to regular premium plans.
- Evaluate your long-term financial needs and liquidity before investing.
Frequently Asked Questions
What is LIC Single Premium Endowment Plan 817?
It is a non-linked, participating endowment insurance plan where the premium is paid once, providing life coverage along with maturity benefits including bonuses.
When was LIC Single Premium Endowment Plan 817 launched and withdrawn?
The plan was launched on January 1, 2014, and withdrawn on February 1, 2020.
Who is eligible to buy this plan?
Anyone aged between 90 days and 65 years can apply, with the policy term ranging from 10 to 25 years.
What is the minimum sum assured for this plan?
The minimum sum assured starts from Rs. 50,000 with no upper limit.
Do I have to pay the premium regularly?
No, this is a single premium plan, so you pay the premium only once at the start of the policy.
Can I surrender the policy before maturity?
Yes, the plan offers surrender value after one year, subject to terms and conditions.
What are the tax benefits under this plan?
Premiums paid are eligible for tax deduction under Section 80C, and maturity or death benefits are exempt under Section 10(10D), subject to conditions.
Conclusion
The LIC Single Premium Endowment Plan 817 is a good option for those preferring a one-time payment insurance-cum-savings plan with life coverage and maturity benefits. Though withdrawn now, it serves as a reference for similar plans and useful knowledge for LIC policyholders.
Using the LIC Single Premium Endowment Plan 817 Calculator makes it easier to estimate premiums and maturity amounts, helping set realistic expectations.