Premiums are to be paid only once under this policy. The minimum sum assured is 50 thousand rupees. This means that an insurance of at least 50 thousand rupees can be taken and the maximum amount is not fixed.
How good it is that in an insurance policy we have to pay only one time premium but get cover forever and also good returns in the end. LIC also runs this type of policy called New Single Premium Endowment Plan. It has been started by the IRDA on 1 February 2020.
First of all, it is important to know for whom a single premium policy is right. Those who have got more money together, they can take this policy. For example, someone who had invested in a lump-sum return, had taken a policy whose maturity, had received retirement money, or people who want to give their children in a policy gift, they can take this policy. Some people also want to take this policy because they have to avoid paying premiums again and again, they like to pay the premium once.
Pay premium once
The premium has to be paid only once during the entire term, so this policy is also compared to the fixed deposit. There are two types of benefits in this, in which more benefits are said at a lower premium. The minimum age to take this policy is 90 days. In order to give a gift to a child, this period of three months has been fixed. Maximum age is 65 years. People above this age cannot take this policy. This policy can be taken for a minimum of 10 years and maximum of 25 years.
Special policy for children
Premiums are to be paid only once under this policy. The minimum sum assured is 50 thousand rupees. This means that insurance of at least 50 thousand rupees can be taken and the maximum amount is not fixed. This policy is very important for children and if they are 8 years or older, then the cover starts as soon as they take the policy. There is a rule of 2 years term for children. If the child is 3 years old, then after 2 years or when he is 5 years old, then the cover will start. However, if a child is 8 years old or more, then the cover starts with taking the policy.
Understand in simple language
It can be understood in simple language. Sunil, 35, has taken this single premium policy and has opted for a sum assured of Rs 10 lakh. Sunil has taken a policy for 25 years. Accordingly, he will have to pay Rs 4,67,585 for 25 years. When 25 years are over, Sunil’s policy will be matured and he will be paid the return from LIC. Sunil will get first sum of Rs 10 lakhs, Rs 12,75,000 as Waste Simple Reversionary Bonus, Rs 4,50,000 as Final Additional Bonus. If you add the entire amount, Sunil will get Rs 27,25,000 on 25 years.
Returns over FD
It may be that Sunil feels that if he accumulates so much money in a fixed deposit, then it will get more returns. For example, if you add the account of FD at the rate of 6.50 percent and calculate it with the premium amount of Rs 4,67,585, then Sunil will get Rs 23,43,773. But Sunil is getting more than Rs 27 lakh by paying single premium in LIC. Nowadays there is no FD of 25 years. For this, FDs of two or three terms will have to be taken. Interest rate fluctuations are also a different problem. In this context, LIC’s single premium policy looks more effective than FD.
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