The LIC Single Premium Endowment Plan (Plan 717, UIN: 512N283V03) is a one-time investment plan from LIC that combines insurance protection with guaranteed savings, bonus potential, and flexible benefits. In today’s Indian market, it is considered one of the best choices for risk-free investment, child planning, or long-term wealth building, all backed by the trust of LIC.Let us understand this plan in detail, in simple terms, so that you can decide whether it fits into your financial goals or not .

In India, life insurance is not only just about securing only a single life. For most of us, it is also about saving for the future, creating a financial space, and also for peace of mind that our family will be taken care of when we are not alive. LIC of India, being one of the most trusted name in this space for more than six decades, constantly introduces products that combine safety, savings, and security.

LIC Single Premium Endowment Plan (717) – Eligibility Conditions

What is LIC Single Premium Endowment Plan (717) ?

LIC Single Premium Endowment Plan is a participating (with-profits), non-linked( not depend on share market) , savings-cum-protection plan ( Both benefits) . In simple words, it means:

• This policy has a insurance plan which are provided a savings benefit to the policy holder and there family.
• It has one more benefits that it is a “single premium” plan, where you have just pay there premium once at the time of purchase. you have to pay only one time in life .
• LIC Single Premium Endowment Plan plan has also life covering benefits ,means insurance facility . they are work as saving + life cover .It gives to your family a lumpsum death benefit ,in condition of passes awaythe policyholder during the term. other wise it get a lumpsum maturity amount with bonuses if the policyholder survives till the end of the policy period.

So, LIC Single Premium Endowment Plan policy has core benefit of paying a one-time investment and secure both protection and returns for the future. this is most popular policy.

LIC Single Premium Endowment Plan (717) Key Features

There are many key feature of Single Premium Endowment Plan , they are listed below for you knowledge.

1. Single Premium Only – According to condition of this plan policy holder have to pay premium just once at the beginning. No headache of yearly renewals or monthly
2. Combines Savings and Insurance – This plan is cover Both (Saving and life insurance cover). where In case of death, policy holder family will gets the Sum Assured with bonuses, and if they survive, then they get maturity value with the same benefits.
3. Flexible Policy Term – Flexibility of term is also found in which policy holder can choose a term from 10 years to 25 years depending on your need.
4. High Sum Assured Rebate – Under this scheme, If anyone invest a higher amount, then they actually get rebates, meaning the effective cost of insurance reduces.
5. Loan Facility Available – This is similar to FD, from where If you need money urgently during the course of the policy, policy holder can also take a loan against it.
6. Settlement Options – LIC Single Premium Endowment Plan (717) has settlement facility to take money in installment .If some one not to receiving maturity or death benefits as a lump sum at at one time, they or there family can choose to receive the money in yearly, half-yearly, quarterly, or even monthly instalments – like a steady income stream.
7. Optional Riders –under LIC Single Premium Endowment Plan policy holder can be taken extra protection by opting for riders like Accidental Death & Disability Benefit Rider or Term Assurance Rider, by paying an some additional premium during inception.

What is Benefits payable under this policy

There are many benefits found under this LIC Single Premium Endowment policy.

Death Benefit

We know LIC Single Premium Endowment Plan cover life + saving benefits both . Whereas ,if policyholder get dies during the policy term after commencement of risk:

• For those below 50 years at entry: Under this condition the nominee of the policyholder will gets higher of (Basic Sum Assured or 1.25 times Single Premium) along with bonuses.
• For those 50 years and above: In this situation nominee of the policyholder will be get higher of (Basic Sum Assured or 1.10 times Single Premium) along with bonuses.

And If the policy is bought for a child below 8 years, and child get death occurs before the commencement of risk, then in this situation LIC refunds only the premium (without interest).Nominees will not get any more amount in place of total premium.

Maturity Benefit

Now we seen a condition, where policy holder survives till the end of policy term (10, 15, or 25 years) then they will get Basic Sum Assured + Bonuses (Simple Reversionary + Final Additional Bonus, if any) as a lumpsum declared by LIC.

Basic Sum Assured (BSA)

This is the guaranteed amount taken by the policyholder at the time of buying. Where

• Minimum: ₹100,000
• No maximum limit (in multiples of ₹10,000).

👉 Example: If you choose a BSA of ₹10,00,000, this amount is guaranteed at maturity.

Simple Reversionary Bonus (SRB)

See, this is a regular bonus declared by LIC every year (per ₹1,000 sum assured) while the policy is in force.

• The bonus depends on the policy term and the performance of LIC.
• Bonus is added every year and paid out at maturity or death.

👉 Example:
think that ,If the declared bonus rate is ₹45 per ₹1,000 SA per year, and the policy term is 25 years, then :

Simple Reversionary Bonus (SRB) : (10,00,000/1000)*50=₹ 50,000

Total Maturity Value Formula

Maturity Value=BSA (A)+Simple Reversionary Bonus (B)+Final Additional Bonus (C)

Loan Facility

LIC Single Premium Endowment policy has many facility in one of them is Loan facility , assume After just 3 months (or completion of free-look period), you can avail a loan against your policy. The loan amount is a percentage of the surrender value – up to 80% after 10 years. The current loan interest rate is around 9.5% p.a. (as declared for 2024–25).

Surrender Value

when some one not want to run the policy , means they are want to stop the policy ,in this situation LIC has also some condition ,if they are fulfilled then they get Surrender Value benefited. this policy are also allow to surrender (close) your policy at any time. The guaranteed surrender value is:

• 75% of premium if surrendered within first 3 years,
• 90% of premium if surrendered thereafter.

Along with this, surrender value of vested bonuses (if any) is also added.

Real – life scenario Example

If a 30-year-old Rajesh has buys this plan for a term of 25 years with a Basic Sum Assured of ₹10,00,000,.under this

1. Policyholder Age: 30 years
2. Policy Term: 25 years
3. Basic Sum Assured (A): ₹10,00,000
4. Bonus Rate: ₹45 per ₹1,000 SA per year
5. Final Additional Bonus (C): ₹50,000

Calculation:

1. BSA (A): ₹10,00,000
2. SRB (B): ₹11,25,000 (as shown above)
3. FAB (C): ₹50,000

At maturity Benefit, he/she will receive-

👉 Total Maturity Value = ₹10,00,000 + ₹11,25,000 + ₹50,000 = ₹21,75,000

In case of unfortunate death during the policy term, the nominee will receive at least the Basic Sum Assured or death sum assured (whichever is higher), plus bonuses.

Real-Life Example (Death Scenario)

• Policyholder Age at Entry: 30 years
• Policy Term: 25 years
• Basic Sum Assured (BSA): ₹10,00,000
• Single Premium Paid: ₹5,00,000
• Death Occurs in Year 12

Step 1: Calculate SAD

• 125% of BSA = 125% × ₹10,00,000 = ₹12,50,000
• Single Premium Paid = ₹5,00,000

👉 Higher value = ₹12,50,000 (SAD)
👉 Also, check condition: 105% of Single Premium = 105% × ₹5,00,000 = ₹5,25,000 (✅ already lower, so not applicable).

Step 2: Add Bonuses

Assume LIC declares SRB = ₹45 per ₹1,000 SA per year

Till year 12:

SRB:– (10,00,000/1000)*45*12 =₹ 5,40,000

Step 3: Death Benefit

Death Benefit =SAD+SRB+FAB

Death Benefit =12,50,000 +5,40,000+0 = ₹17,90,000

So, in this example, if the policyholder dies in the 12th year, the nominee will receive ₹17.9 lakh as the Death Benefit.