The Life Insurance Corporation of India (LIC) is a leading insurance company which enjoys the unparalleled trust of its policyholders. The company is the oldest life insurance company which has been around since the year 1956. Over the course of its existence, LIC has issued different types of life insurance plans to fulfil the different insurance needs of customers. Many of the older plans have been withdrawn and in their place, the company has introduced new plans in the market.
Among the different plans offered by LIC, single premium policies are popular among those individuals who are looking to invest a lump sum amount of money at once and enjoy coverage for a longer duration. LIC offers various types of single premium policies which have a term of 10 years and above. Let’s have a look at the available LIC 10-year plans with the facility of single premium payments.
- LIC’s Single Premium Endowment Plan
LIC’s Single Premium Endowment Plan is a traditional endowment assurance plan where the premium is required to be paid only when you buy the policy. The plan has the following features and benefits –
- Bonuses are added to the corpus of the policy throughout the plan duration
- Sum assured and accrued bonuses are paid either on death or on the maturity of the plan
- If you choose a sum assured of INR 1 lakh and above, you get a premium discount. The discount ranges from 18% to 30% of the sum assured depending on the sum assured level selected
- You can avail a policy loan from the second policy year
Plan parameters of LIC’s Single Premium Endowment Plan:
Age at entry 90 days to 65 years Term of the plan 10 years to 25 years Sum assured INR 50,000 onwards Single premium Depends on the age, term and sum assured selected
- LIC’s New Bima Bachat Plan
Bima Bachat is another plan which requires a single premium for the policy. Though the minimum term of the plan is 9 years, it also offers you the option to choose a term of 12 or 15 years. The salient features of the plan are as follows
- Loyalty additions are added to the policy after the completion of the first five years of the plan
- This is a money-back plan where 15% of the sum assured is paid every three policy years. These money-back benefits give you easy liquidity
- The single premium paid and loyalty additions added are returned on the maturity of the plan
- You can enjoy premium discounts if you choose higher levels of sum assured
- A policy loan is available for your financial needs
Plan parameters of LIC’s New Bima Bachat Plan
Age at entry 15 years to 66 years Term of the plan 9, 12 or 15 years Sum assured INR 35,000 onwards Single premium Depends on the age, term and sum assured selected
Other policies available in the market
Besides the above named LIC 10 year plans which require a single premium, there are other single premium policies in the market too which offer coverage for 10 years and above. Here are some of the best plans for you to choose from –
- HDFC Life Classic One Plan
This is a unit-linked policy offered by HDFC Life, a leading life insurance company. The policy has the following benefits –
- You can choose coverage for joint life under the plan
- There are 10 investment funds to choose from
- The insurance cover can be chosen for up to 10 times the single premium that you have paid
- The plan provides attractive market-linked returns which are inflation-proof
- Loyalty additions are also added to the fund value for better returns
- You can choose a Systematic Transfer Plan to invest your funds in a disciplined manner and to get the benefit of rupee-cost averaging
- Coverage can be taken for up to 90 years under joint life coverage option
Plan parameters of HDFC Life Classic One Plan
Age at entry For single life – 0 years to 40 years
For joint life – 18 years to 80 years
Term of the plan Minimum – 10 years
Maximum – 50-entry age for single life cover or 90-entry age for joint life cover
Sum assured 1.25 times to 10 times the single premium Single premium INR 2 lakhs onwards
- ICICI Pru 1 Wealth Plan
This is also a unit-linked plan which requires a single premium. The features of the plan are as follows:
- There are seven investment funds to invest your premiums
- 100% of the premium is invested into the chosen funds without any premium allocation charge
- Wealth boosters are added to the fund value for higher returns
- Life cover of up to 10 times the single premium can be availed
- Unlimited switching is allowed under the plan free of cost
Plan parameters of ICICI Pru 1 Wealth Plan:
Age at entry 8 years to 60 years Term of the plan 5 or 10 years Sum assured 1.10 times to 10 times the single premium Single premium INR 50,000 onwards
- AEGON Life iMaximize Single-Premium Insurance Plan
As is evident from the name itself, iMaximize is a single premium unit-linked plan which can be bought easily online. The features of the plan include the following –
- There is no premium allocation charge and your entire premium is invested in the chosen fund
- There are six funds for your investment preferences
- You get tax benefits on the premium paid as well as on the benefits earned from the plan
Age at entry 8 years to 65 years Term of the plan 5 years or 10 years Sum assured 1.10 times to 10 times the single premium Single premium INR 1 lakh onwards
The death benefit payable under LIC 10 year plans
In LIC 10 year plans as well as the other single premium life insurance plans mentioned above, the death benefit is payable if the insured dies during the term of the plan. The death benefit is as follows –
- In the case of traditional endowment plans, the sum assured and any bonus or loyalty addition is paid
- In the case of unit-linked insurance plans, the higher of the sum assured or the fund value is paid
How to buy LIC 10 year plans?
You can buy LIC 10 year plans online through LIC’s website or offline through LIC agents or from the nearest LIC branch. To buy, you would have to fill up an application form stating your details. You would also have to submit your documents to complete the application process. The documents include your photo identity proof, photographs, address proof, age proof, income proof, Aadhar card, PAN card, etc. You would also have to pay the premiums at the time of application so that the company can issue the plan after the proposal form has been verified and assessed.
However, you can purchase other 10 year life insurance plans can be bought online through Turtlemint. Turtlemint gives you a platform to compare other 10-year single premium plans and then buy the best policy as per your coverage needs.
With Turtlemint, you get the following benefits –
- You get to compare between the best 10-year single premium plans as LIC is tied up with the leading life insurance companies of India
- You get complete one-on-one assistance in buying the most suitable insurance policy for your needs
- You get a dedicated claims handling team which handles your claims on your behalf and gets your claims settled at the earliest
- You get the solutions to your insurance related queries through Turtlemint’s dedicated customer assistance team
To buy the plan through Turtlemint, use the following steps –
- Visit Turtlemint at https://www.turtlemint.com/life-insurance
- Choose the financial goal for which you need a policy. There are four goal options to choose from –
- Term life plans
- Investment and tax planning
- Savings for child
- After choosing the coverage need, provide your details which would include the following g –
- Date of birth
- Annual income
- Smoking preference
- Investment tenure
- Investment frequency
- Your name, number and email ID
- Once all the details are provided you would be able to check the available plans suiting the details that you entered
- Compare the plans on their coverage and premium and then choose the best policy
- Pay the premium online, fill up an online proposal form and submit it to get the policy at the earliest
Documents need to buy LIC’s 10 Year Single Premium Plan:
These simple steps would let you buy LIC 10 year plans or any other single premium plan of your choice. You would also have to submit some relevant documents to buy the policy which includes the following:
- Your identity proof
- Age proof
- Address proof
- PAN Card
- Aadhar card
- Bank details
Once the documents are submitted and the insurance company successfully verifies them, the policy would be issued.
So, buy the most suitable single premium policy for your needs which has coverage duration of 10 years or more. LIC 10 year plans can be the solution but there are also other plans for you to check. Single premium plans would give you the benefit of continued coverage without the hassles of paying the premiums regularly. So, if you have a lump sum fund to invest, invest in single premium traditional or unit-linked plans and build your corpus.
Frequently Asked Questions:
- What is the tax benefit on the single premium paid for buying a life insurance policy?
The single premium that you pay for the policy is allowed as a deduction under Section 80C of the Income Tax Act. The deduction is allowed up to INR 1.5 lakhs on the premium which is up to 10% of the sum assured. If the premium is more than 10% of the sum assured, the deduction is allowed only up to 10% of the premium and the extra is chargeable to tax.
- Are maturity benefits tax-free?
Yes, the maturity benefit or the death benefit that you receive from your single premium policy is tax-free under Section 10 (10D) of the Income Tax Act.
- What to do if my LIC policy has been withdrawn by the company?
If you hold a LIC policy which has been withdrawn, you have two options. You can either continue with the policy or surrender it and buy a new one. If you continue with the policy, you would get a death or a maturity benefit as when they fall due. If, however, you surrender the policy, you get the surrender value.
- What documents are required for making a death claim?
For a death claim, the following documents would be required –
- Claim form which should be filled and signed by the nominee
- Death certificate
- Police FIR in case of accidental deaths
- Medical reports, post mortem reports, coroner’s reports, etc. if applicable
- Nominee’s cancelled cheque so that the claim can be transferred directly to the nominee’s bank account