Single Premium Endowment Plan – 717

LIC’s Single Premium Endowment Plan (717) is a one-time investment plan that combines life protection and long-term savings. The policyholder pays a single premium upfront and receives life coverage throughout the policy term. At maturity, a guaranteed lump sum along with bonuses is paid. In case of the policyholder’s death during the term, the nominee receives the sum assured immediately. This plan suits individuals seeking secure lifelong financial protection and disciplined savings with just a one-time payment.

• One-Time Premium: Make a single investment and get full policy benefits.
• Life Cover: Protection throughout the policy term without recurring premiums.
• Maturity Benefit: Guaranteed lump sum + bonuses paid at maturity.
• Death Benefit: Full sum assured paid to beneficiaries on death.
• Loan Facility: Borrow against the policy after a lock-in period.
• Simple & Hassle-Free: No yearly premium payments, ideal for busy professionals.
• Tax Benefits: Eligible for Section 80C and 10(10D) tax benefits.
• Guaranteed Savings: Safe, low-risk long-term wealth creation.
• Ideal for Lump-Sum Investment: Great for bonuses, retirement funds, or surplus money.
• Flexible Terms: Choose policy terms to suit future needs.

Detailed Description

LIC’s Single Premium Endowment Plan (Plan No. 717) is a unique life insurance policy crafted for individuals who prefer simplicity, security, and long-term financial planning through a one-time investment. Instead of paying premiums every year, half-year, or month, this plan only requires a single premium payment at the beginning of the policy. In return, the policyholder receives life coverage for the entire policy duration, along with guaranteed maturity benefits at the end of the term. The plan perfectly blends protection and savings, making it an attractive option for people who want reliable returns without the ongoing commitment of recurring payments.

In today's fast-paced financial world, many individuals struggle to maintain regular premium payments due to time constraints, income variations, or multiple financial commitments. The Single Premium Endowment Plan solves this problem by offering a hassle-free, one-step approach to life insurance and savings. Once the premium is paid, the policy automatically remains active for the entire term, ensuring peace of mind and uninterrupted financial protection.

One of the strongest features of this plan is the guaranteed life cover. From the moment the policy is issued, the policyholder is fully protected throughout the policy term. If the insured person passes away during the policy duration, the nominee receives the death benefit amount, which typically includes the sum assured plus any declared bonuses. This feature makes it an ideal protection tool for breadwinners who want to secure their family’s financial future with a single financial commitment.

On the maturity side, the plan offers attractive savings benefits. At the end of the policy term, the policyholder receives the maturity amount, which includes the sum assured along with reversionary bonuses and possibly a final additional bonus (FAB), depending on LIC’s performance and guidelines. This combination of guaranteed returns plus potential bonuses makes it a dependable long-term savings instrument.

A major reason individuals choose this plan is its suitability for lump-sum investments. People receiving large payouts—such as retirement benefits, annual bonuses, business profits, inheritance funds, or surplus money—often want to invest in a safe and stable instrument that will provide both protection and returns. The Single Premium Endowment Plan is designed precisely for such scenarios. By investing once, individuals secure their future financial needs without worrying about future premium commitments or payment reminders.

The plan also includes a loan facility, which becomes available after a certain lock-in period. This is particularly helpful for individuals who may face unexpected financial demands later. They can borrow against the policy without surrendering it, ensuring both continued protection and liquidity.

Another appealing feature is the tax efficiency offered by the plan. The single premium paid is eligible for tax deduction under Section 80C of the Income Tax Act, helping policyholders reduce their taxable income. Additionally, the maturity amount is usually eligible for tax exemption under Section 10(10D), making the returns completely tax-free subject to prevailing tax laws.

From a financial planning perspective, the Single Premium Endowment Plan is a stable and low-risk savings option. Unlike market-linked plans that fluctuate with economic trends, this policy guarantees assured benefits and does not expose the policyholder to market volatility. This makes it particularly suitable for conservative investors, senior citizens, and individuals looking for safe long-term savings.

The plan is also ideal for parents looking to build a financial safety net for their children. By paying a single premium today, parents can ensure their child receives a substantial maturity amount at a future milestone such as higher education, marriage, or starting a career. Meanwhile, the child remains financially safeguarded through life cover during the term.

The ease of purchase is another highlight. There are fewer documentation and eligibility requirements compared to other long-term plans. Many buyers appreciate the convenience of paying once and enjoying long-term protection and savings without future obligations.

To better understand the plan’s practicality, consider this scenario: A 35-year-old individual invests ₹2 lakhs as a single premium for a policy term of 20 years. Throughout the 20 years, the individual remains covered by life insurance. If they survive the term, they receive the full maturity amount, which includes the sum assured and accumulated bonuses. If they pass away during the term, their family receives the life cover amount, ensuring financial stability during difficult times.

Another scenario could involve a retired person who wants to invest part of their retirement benefit in a safe policy. By paying a single premium, they secure life insurance protection and create a savings reserve that their family can benefit from in the future.

In conclusion, LIC’s Single Premium Endowment Plan – 717 is a powerful financial tool designed for individuals seeking a balance of long-term savings, guaranteed returns, life insurance coverage, and convenience. Its one-time premium structure eliminates future financial obligations, while its combination of protection and growth makes it one of the most reliable plans available. Whether you're planning for future expenses, protecting your family, or looking for a safe investment avenue, this plan offers unmatched simplicity, stability, and financial confidence.