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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


Minimum Entry Age 90 days


Maximum Entry Age 65 years


Maximum Maturity Age 75 years


Minimum Policy Term 10 years


Minimum Age at Maturity 18 years


Maximum Policy Term 25 years


Minimum Sum Assured Rs.50,000


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


Policy term


Sum Assured


Premium Amount



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.



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.





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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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