LIC Sinlge Premium Policy: Investing in a policy or mutual fund is very important, but how to invest here remains a big question. Today we will talk about the single premium policy of Life Insurance Corporation of India (LIC), in which you do not have to pay premium every month but after investment you get a huge amount. The name of this policy is LIC Endowment Plan Table No. 917, in this you have to pay the premium once and in the end you get a large amount. If you want to avoid the hassle of paying premiums again and again, then you can invest in this policy.
Who can invest in this policy
Anyone from the age of 90 days to 65 years of age can invest in this policy. However, people above 65 years of age are not advised to invest in it. The minimum age of maturity is 18 years and maximum is 75 years. Investments in this policy can be made for a tenure ranging from 10 years to 25 years. You can invest in this policy from Rs 50,000 and there is no maximum limit.
What are the benefits of investing in a policy?
On the maturity of this policy, the policy holder gets the benefit of bonus and additional bonus along with the sum insured. Every year LIC announces this bonus. This bonus is attached to the policy and when it is paid, gets along with the sum assured. If the holder dies during the course of the policy, then he gets the full sum assured. You can also take a loan against this policy. This loan is 90% of the surrender value of the policy.
Tax benefit is also available
In this policy, the holder also gets a separate tax benefit. The premium paid under the policy is received under section 80C. Apart from this, the amount received under death benefit is tax free under section 10(10D). The money received under maturity is taxable, which means that any money that comes in hand will have to be taxed.
You can invest from Rs 50,000
In this policy of LIC, you can start investing with Rs 50,000. However, there is no limit on the maximum investment amount in this scheme. In this scheme, you also get the benefit of death benefit and maturity, which you can take either in one go or in the form of installment. Explain that the nominee of the policy gets the death benefit. If you want maturity, then you can take it in installment also, this installment can be taken on every month, quarter, half yearly or yearly basis.
Gets more returns than FD
Let us tell you that LI’s single premium policy earns an interest of 6.5% but when you compare it with fixed deposit, you will know that you are getting more return on single premium policy than fixed deposit. This policy is being compared with FD because in this policy also one time premium has to be paid.
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