LIC of India launched an exceptional savings-cum-insurance plan called the LIC Single Premium Endowment Plan 917 on 1st February 2020. This plan is designed for individuals who wish to make a one-time investment and enjoy life cover, along with guaranteed maturity benefits and bonuses.
It is a traditional, non-linked, participating plan, which means your money is not exposed to market risks, and it also participates in the corporation’s profit through bonuses.
Let’s explore every aspect of this policy in detail, so you can understand how it works, whether it suits your needs, and how it benefits your long-term financial goals.What is LIC Single Premium Endowment Plan 917?
LIC Single Premium Endowment Plan 917 is a one-time investment insurance plan that offers both life cover and guaranteed returns at maturity. You pay the premium only once at the beginning of the policy, and in return, LIC provides you:
- Life insurance coverage for the entire policy term.
- Maturity benefit after the policy term if you survive.
- Death benefit to your nominee in case of your unfortunate demise during the term.
This plan is ideal for those who wish to invest a lump sum amount and ensure future financial stability either for themselves or their family.
Key Features of LIC Single Premium Endowment Plan 917
- Single Premium Payment: You pay the premium only once, at the beginning of the policy.
- Endowment + Term Insurance: Offers the dual advantage of life insurance coverage and savings.
- Participates in Profits: Eligible to receive Simple Reversionary Bonus and Final Additional Bonus (FAB), depending on LIC’s performance.
- Maturity Benefit: Sum Assured + Bonuses at the end of the policy term.
- Death Benefit: Sum Assured + Bonuses in case of policyholder’s death during the policy term.
- Loan Facility: Available after 1 year.
- Tax Benefits: Premiums qualify for tax deduction under Section 80C, and maturity proceeds may be tax-free under Section 10(10D).
Eligibility Criteria and Parameters
| Criteria | Details |
|---|---|
| Minimum Age at Entry | 90 days (completed) |
| Maximum Age at Entry | 65 years |
| Policy Term | 10 to 25 years |
| Maximum Maturity Age | 75 years |
| Minimum Sum Assured | ₹50,000 |
| Maximum Sum Assured | No Limit (depends on underwriting) |
| Premium Payment | One-time payment only |
Premium Rebates Based on Sum Assured
The plan offers attractive rebates (discounts) on premium based on the Sum Assured you choose:
| Sum Assured Range | Rebate on Basic Sum Assured |
|---|---|
| ₹50,000 to ₹95,000 | NIL |
| ₹1,00,000 to ₹1,95,000 | 18% |
| ₹2,00,000 to ₹2,95,000 | 25% |
| ₹3,00,000 and above | 30% |
These rebates make the plan even more beneficial for higher-value investments.
Benefits of LIC Single Premium Endowment Plan
1. Maturity Benefit
If the policyholder survives the policy term, he or she will receive:
- Sum Assured + Simple Reversionary Bonus + Final Additional Bonus (if declared).
This lump sum can help with retirement, children’s education, or major life expenses.
2. Death Benefit
If the policyholder passes away during the term, LIC will pay the nominee:
- After Risk Commencement:
Sum Assured + Accrued Bonuses + Final Additional Bonus (if any). - Before Risk Commencement (for minors below 8 years):
Refund of single premium paid, excluding taxes and extra premium, without interest.
3. Loan Facility
- Loan can be availed after completion of one policy year.
- Useful in case of financial emergencies without breaking the policy.
4. Tax Benefits
- Section 80C: You can claim deduction for premium paid.
- Section 10(10D): Maturity proceeds are tax-free (subject to prevailing rules).
Other Important Information
| Feature | Description |
|---|---|
| Commencement of Risk | For minors, risk begins either after 2 years of policy or at age 8, whichever is earlier. |
| Lock-in Period | 1 year |
| Loan Available | Yes, after 1 year |
| Backdating Allowed | Yes, within the same financial year |
| Assignment/Nomination | Both allowed |
| Suicide Clause | If suicide occurs within 1 year, 80% of premium (excluding taxes) is refunded. |
| Cooling-off Period | You may return the policy within 15 days if unsatisfied. |
| Proposal Forms | Form No. 300, 340, 360 as applicable. |
Illustration – LIC Single Premium Endowment Plan Example
Let’s understand how this policy works with a practical example.
Example:
- Name: Ravi
- Age at Entry: 25 years
- Policy Term: 25 years
- Sum Assured: ₹8,00,000
- Single Premium Paid: ₹3,62,688
- Policy Start Year: 2020
- Maturity Year: 2045
- Maturity Age: 50 years
Maturity Benefits (Assumed)
Let’s assume Ravi survives the full policy term. On maturity in the year 2045, Ravi receives:
| Component | Amount (Approx.) |
|---|---|
| Sum Assured | ₹8,00,000 |
| Simple Reversionary Bonus | ₹10,00,000 (approx.) |
| Final Additional Bonus (FAB) | ₹3,80,000 (approx.) |
| Total Maturity Amount | ₹21,80,000 (approx.) |
This means that by investing ₹3.62 lakh once, Ravi gets nearly ₹21.8 lakh after 25 years — tax-free and guaranteed, subject to bonus declarations.
Bonus Structure (Indicative Only)
LIC declares Simple Reversionary Bonus and Final Additional Bonus (FAB) based on their yearly profit and performance.
- Simple Reversionary Bonus is added each year.
- Final Additional Bonus is a lump sum bonus, declared at the time of maturity or death (if eligible).
These bonuses significantly boost your returns without any additional payment.
Who Should Buy LIC Single Premium Endowment Plan 917?
This plan is ideal for individuals who:
- Have a lump sum amount and want to invest in a safe and guaranteed product.
- Want life cover with savings benefits.
- Prefer one-time payment instead of regular premium commitments.
- Want to plan for long-term financial goals like children’s future, retirement, etc.
- Are looking for tax-saving investments under Section 80C.
Advantages at a Glance
- One-time premium payment — no recurring commitment.
- Guaranteed maturity and death benefits.
- Participates in LIC profits – enhances returns with bonuses.
- Tax benefits on premium and maturity amount.
- Liquidity via loan facility.
- Safe and reliable investment – backed by LIC of India.
Things to Keep in Mind
- Risk cover for minors starts late (after 2 years or age 8).
- No flexibility to pay premiums later – must be paid upfront.
- Surrendering early may yield less than the invested premium.
- Returns depend on bonuses declared by LIC.
Conclusion
LIC Single Premium Endowment Plan 917 is a solid choice if you’re looking for a secure, one-time investment that offers insurance protection along with substantial returns over time. It’s backed by LIC’s trust, bonus history, and simple structure, making it ideal for conservative investors and families looking for long-term financial protection.
Before purchasing, evaluate your financial goals, available investment amount, and desired policy term. As always, it’s best to consult an authorized LIC agent or advisor to get a customized quote and understand all policy nuances.
