HNW Lump-Sum Capital Compounding 2026

LIC Single Premium Calculator

Model one-time lump-sum deposits under LIC's Single Premium Endowment Plan (Plan 917). Project compounding reversionary bonuses, simulate instant loan liquidity, and evaluate Section 10(10D) taxability warnings.

Tabular Single Premium Base Rate Modeling

High Sum Assured Rebates (Saves up to ₹30 per ₹1,000 Sum Assured)

Simple Reversionary Bonus & Final Additional Bonus Projections

Interactive Surrender Value & Instant Cash Loan Simulator

Section 10(10D) Premium-to-Cover Tax Advisory

Plan 917 Lump-Sum Modeler

Calculate single-premium deposits, model compounding wealth accruals, simulate cash surrender thresholds, and check 10(10D) tax compliance.

Basic Sum Assured (Cover Value)₹5.0 Lakh

₹

Policy Term (Years)20 Yrs

Min: 10 YrsMax: 25 Yrs

Entry Age (Years)30 Yrs

Min: 1 YrMax: 65 Yrs

Simulate Surrender & Loan Value

Move the slider to calculate your cash reserve threshold at any policy year.

Year 5 Value

Year 1 (Initial Break)Year 20 (Term Completion)

Tax Advisory u/s 10(10D): Maturity Proceeds TaxableBecause standard single-premium plans feature a high premium-to-cover ratio, your Death Cover (₹6,25,000) is only **3.20x** your single premium paid—falling short of the mandatory **10x threshold**.• Maturity Taxability: Payouts on maturity will be taxable under your applicable income tax slabs (with tax deducted at source under Section 194DA if applicable).• Death Claim Status: Despite this, in the event of demise during the term, the entire claim paid to your nominee remains **100% tax-free**.

One-Time Capital Deposit

₹1,95,415

Plan 917 Single PayEstimated Net IRR: 8.17% CAGR

Investment Return Projections

💼 Base Premium (Excluding GST):₹1,87,000

⚡ GST Surcharge (4.5%):₹8,415

🎁 High Sum Assured Rebate (Discounted):-₹15,000

💰 Net Compounded Payout Gain:+₹7,44,585

Basic Sum Assured Payout:₹5,00,000

Vested Reversionary Bonus (20 Yrs):₹4,20,000

Final Additional Bonus (FAB):₹20,000

Projected Maturity Value:₹9,40,000

Policy StatusSINGLE DEPOSIT

Net Premium Capital Deposit (21%)Vested Reversionary Bonuses (45%)Final Additional Bonus (2%)Net Interest Profit Gain (79%)

This graph displays your Plan 917 capital asset layout: your net upfront deposit vs. compounding reversionary bonuses, terminal bonuses, and net investment gains.

Single Premium Wealth Lifecycle

Understand exactly how your single deposit accumulates compounding bonuses, secures liquid reserves, and delivers maturity wealth.

Stage 1

Lump-Sum Entry

Deposit a single lump-sum premium (fully covering base cost + 4.5% GST). Zero future payments ever required.

Stage 2

Tax Exemption Check

Up to ₹1.5L can be claimed under Sec 80C. Section 10(10D) taxability warning displays based on 10x cover checks.

Stage 3

Compounding Growth

Policy participates in annual Simple Reversionary Bonuses. Accruals lock and grow each completed year.

Stage 4

Liquidity Reserves

Avail of direct policy cash loans up to 90% of surrender values to handle temporary emergency expenses.

Stage 5

Maturity Payout

Receive Sum Assured + full vested reversionary bonuses + Final Additional Bonus (FAB) on term completion.

LIC Single Premium Endowment: Actuarial Benefits & Mechanics

The **LIC Single Premium Endowment Plan (Plan 917)** is a traditional, participating, one-time premium paying plan. Designed for individuals with lump-sum capital (such as mutual fund redemptions, inheritance, or bonus payouts), this policy eliminates the burden of year-on-year recurring premium payments. Throughout the policy term, the capital compounds under LIC's simple reversionary bonus scales, providing a solid safety net and robust wealth accumulation.

Lump-Sum Rebate Slabs: High Sum Assured Benefits

LIC incentivizes higher capital commitments by offering substantial **High Sum Assured Rebates**. These rebates act as an upfront discount on the tabular single premium base rate per ₹1,000 of coverage:

Basic Sum Assured Slabs	Rebate per ₹1,000 Sum Assured	Equivalent Percentage Discount
Below ₹1,00,000	₹0.00 (Nil)	0.0% (Standard Rates)
₹1,00,000 to ₹1,95,000	₹18.00 Discount per ₹1,000 SA	1.8% of Sum Assured
₹2,00,000 to ₹2,95,000	₹25.00 Discount per ₹1,000 SA	2.5% of Sum Assured
₹3,00,000 and Above	₹30.00 Discount per ₹1,000 SA	3.0% of Sum Assured

The Actuarial Single Premium Calculations

Single premiums incorporate high Sum Assured discounts and a reduced **4.5% GST loading** compared to the 18% applied to standard policy fees:

Net Single Premium Formula

The net premium is computed by applying the entry age and policy term base rate, offset by the high Sum Assured rebate discount:

Net Premium = (Base Rate - Rebate) × (Sum Assured / 1000)

Total Outflow (Including GST)

A flat regulatory **4.5% Goods and Services Tax (GST)** is applied to the net single premium to establish the total upfront capital deposit:

Total Capital = Net Single Premium × 1.045

Critical Tax Warning: Section 10(10D) Compliance

One of the most important considerations for HNW investors parking capital in single-premium savings plans is the **Section 10(10D) tax regulation**.

The 10x Premium-to-Cover Rule

For policy maturity proceeds to remain 100% tax-free, the **Sum Assured on Death (SAD) must be at least 10 times** the single premium paid. Because Plan 917 provides a standard death cover of **125% of the Basic Sum Assured**, the cover is typically only 2x to 3x the single premium.

Implications of Taxability

Since standard Plan 917 policies fail the 10x test, the accumulated maturity return is **taxable under your personal income tax slab**. However, the **death benefit claim paid to a nominee remains 100% tax-exempt** under all scenarios.

Guaranteed Surrender Value & Instant Cash Loans

Single-premium policies provide superior liquidity compared to standard monthly policies due to high upfront equity accumulation:

Guaranteed Surrender Value (GSV): You can surrender the policy at any point. LIC guarantees a surrender return of **75% of the premium in Year 1**, and **90% from Year 2 onwards**, plus a scaling cash value factor (8% to 30%) on vested bonuses.
Instant Policy Loan: To prevent capital loss from surrendering, policyholders can borrow up to **90% of the surrender value** after 1 policy year, with an interest rate of **9.5% p.a. compounded half-yearly**.
Tax Exemptions u/s 80C: Upfront single premiums are fully tax-deductible up to ₹1.5 Lakhs in the assessment year of purchase.

Frequently Asked Questions (FAQs)

Is the maturity amount under LIC Plan 917 tax-free?

Under Section 10(10D) of the Income Tax Act, maturity proceeds of a life insurance policy are tax-free only if the Sum Assured on Death is at least 10 times the annual premium. Since the single premium for Plan 917 is usually around 30%-60% of the Sum Assured, and death cover is only 1.25x the Sum Assured, **most Plan 917 maturity proceeds are taxable** according to the policyholder's income tax slab. However, the death benefit paid to a nominee is always 100% tax-free.

Can I take a loan against my LIC single premium policy?

Yes. A policy loan is available after the completion of **1 policy year**. You can borrow up to **90% of the Guaranteed Surrender Value (GSV)**. The interest rate on the loan is standard at **9.5% p.a., compounded half-yearly**. Your life cover and bonuses remain fully active during the loan tenure.

What happens if I surrender the policy after 1 year?

If you surrender in Year 1, you get a Guaranteed Surrender Value equal to **75% of your net base single premium** (excluding GST). If you surrender from Year 2 onwards, you get **90% of your net base single premium** plus a cash value factor on any vested bonuses. Because surrendering before maturity results in a loss of capital and future bonus accruals, borrowing against the policy is highly recommended instead.

How does the Simple Reversionary Bonus accumulate under Plan 917?

Plan 917 participates in LIC's profits. Every year, LIC declares a **Simple Reversionary Bonus (SRB)** rate per ₹1,000 Sum Assured. For Plan 917, these bonus rates scale depending on the policy term: typically ₹38/1000 for terms 10-15 years, ₹42/1000 for terms 16-20 years, and ₹46/1000 for terms 21-25 years. These bonuses vest annually and accumulate to be paid as a lump sum on maturity or death.

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Term Insurance

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Ahmedabad, Gujarat

Whole Life Plan

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Bangalore, Karnataka

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Hyderabad, Telangana

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2 weeks ago

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