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Review: LIC Single Premium Endowment Plan (UIN: 512N283V01)

By   /   January 2, 2014  /   No Comments

All you want to know about LIC Single Premium Endowment Plan

Lic Single Premium Endowment Plan

It is a Insurance + Investment Plan offered by LIC. Here you need to pay a single premium. Some other terms & conditions of the plan are as follows:

 

Eligibility Conditions & other restrictions

1

Minimum Entry Age 90 days

2

Maximum Entry Age 65 years

3

Maximum Maturity Age 75 years

4

Minimum Policy Term 10 years

5

Minimum Age at Maturity 18 years

6

Maximum Policy Term 25 years

7

Minimum Sum Assured Rs.50,000

8

Maximum Sum Assured No limit

 

Some other benefits:

  1. Tax rebate u/s 80 C
  2. Tax free income on maturity
  3. Life Insurance

 

The Big Question is: Should you buy this plan !!!… off course NOT. To know why let’s have a look at the example on LIC website:

Age at entry

30

Policy term

25

Sum Assured

50000

Premium Amount

23545

 

Death Benefit:

On death during the policy term: Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. According to the above example

 

Maturity Benefit:

Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Here you will get maximum of Rs. 50,316 (Simple Reversionary Bonuses Rs. 37,816 + Final Addition Bonus Rs.12,500) . Here rate of interest comes out to be 3.08%.

 

What to do !!!!…

Investing Rs. 23,534 at a place where rate of interest is 8% will give Rs.1,61,247 at the end of 25 years.

As far as insurance is concerned, you can buy a online term plan at a much cheaper rate.

 

Recommendations:

If you are among those who want a guaranteed return + insurance, instead of going for LIC Single Premium Endowment Plan, Invest in Public Provident Fund + On line Term Insurance.

 

If somehow your agent is still able to convince you to invest in this plan, please feel free to drop a comment or write to me at financialkundali@gmail.com & all for your good I will make sure that you do not invest in it.

 

www.financialkundali.com

www.financialkundali.com

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About the author

Hi My name is Hari Om Tripathi. I am an engineer by chance & a Personal Financial Planner by choice. Currently residing in Kanpur & writing full time for Financial Kundali. In case you have any query about Personal Financial Planning such a buying a MF or ULIP, going for a life insurance plan or a term plan, to surrender your policy or not or any other questions related to your Personal Financial Planning, write to me at financialkundali@gmail.com

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