LIC Single Premium Endowment (Plan 917): Actuarial & Wealth Guide
The LIC Single Premium Endowment Plan (Table No. 917) is engineered for individuals who possess a one-time cash surplus—such as real estate sale proceeds, annual corporate bonuses, agricultural harvests, or matured fixed deposits—and wish to lock in sovereign wealth creation without the recurring commitment of annual premium dues.
By making a single deposit upfront, the policyholder secures active life insurance coverage and annual profit participation for a chosen policy horizon between 10 and 25 years. At maturity, the policyholder receives the Basic Sum Assured + Vested Simple Reversionary Bonuses + Final Additional Bonus (if applicable).
Plan Specifications & High Sum Assured Rebates
| Parameter | Details |
|---|---|
| Minimum Sum Assured | ₹50,000 (No upper limit, in multiples of ₹5,000) |
| Entry Age Range | 90 Days to 65 Years (completed) |
| Policy Term | 10 to 25 Years (Single Premium Pay) |
| Maximum Maturity Age | 75 Years |
| Loan Facility | Available after 1 year (up to 90% of surrender value) |
| High SA Rebate | Graduated rebates of ₹18 to ₹30 per ₹1,000 SA for ₹1 Lakh+ SA |
Bonus Mechanics & Guaranteed Loan Liquidity
Because LIC manages the single deposit across long-term government debt and equity portfolios, the policyholder accumulates annual Simple Reversionary Bonuses (SRB). For terms of 20 to 25 years, historical SRB ranges from ₹42 to ₹46 per ₹1,000 Sum Assured, complemented by terminal Final Additional Bonuses (FAB) reaching up to ₹250 to ₹400 per ₹1,000 SA.
Superior Liquidity Profile
Unlike traditional recurring policies where taking a loan requires 2 full years of payments, single premium policies acquire substantial surrender value immediately. Policyholders can secure an instant policy loan after just 12 months, borrowing up to 90% of the surrender value to capitalize on emerging business opportunities.
Statutory GST & Section 10(10D) Tax Compliance
Single Premium GST
Statutory GST on single premium traditional plans is flat 4.5% (2.25% CGST + 2.25% SGST) applied once to the initial deposit.
Section 80C & Section 10(10D)
Single premium contributions qualify for deduction under Section 80C up to ₹1,50,000 (restricted to 10% of Sum Assured). Maturity proceeds are 100% tax-free under Section 10(10D) provided the Sum Assured on Death is at least 1.25x or 10x single premium as per applicable rules.
Frequently Asked Questions (FAQ)
What is LIC Single Premium Endowment Plan (Plan 917)?
LIC Single Premium Endowment Plan (Plan 917) is an individual, participating life insurance contract where you deposit a one-time lump sum premium at inception. You enjoy continuous life insurance protection and annual bonus accruals for a chosen term of 10 to 25 years.
What is the death benefit under LIC Plan 917?
If the life assured dies before the date of risk commencement, the single premium paid (excluding taxes) is refunded. If death occurs after risk commencement during the policy term, the nominee receives the Sum Assured on Death (defined as higher of Basic Sum Assured or 1.25 times the single premium) plus accrued Simple Reversionary Bonuses and FAB.
What are the entry age and policy term limits for Plan 917?
The minimum entry age is 90 days completed, and the maximum entry age is 65 years. The policy term can be chosen from 10 to 25 years, with the maximum maturity age capped at 75 years.
What is the statutory GST rate on single premium endowment plans?
For single premium traditional policies like Plan 917, statutory GST is charged at flat 4.5% (2.25% CGST + 2.25% SGST) on the single purchase price.
Can I take a loan against an LIC single premium policy?
Yes, a policy loan is available after the completion of just 1 full policy year, up to 90% of the surrender value, offering excellent liquidity for business owners or investors.
Case Study: ₹5 Lakh Single Premium Deposit (Plan 917, 20-Year Term)
To observe the wealth accumulation dynamics of a single-pay contract, consider a 30-year-old depositing ₹5,00,000 into Plan 917 for 20 years:
- Total One-Time Deposit (with 4.5% GST): ₹5,00,000 + ₹22,500 = ₹5,22,500. Zero future payments ever!
- Basic Sum Assured Generated: Approximately ₹7,25,000 based on entry age and tabular rates.
- Vested Simple Reversionary Bonus: ₹42/₹1,000 SA × 725 × 20 years = ₹6,09,000.
- Estimated Final Additional Bonus (FAB): Approx. ₹1,00,000 at maturity.
- Total Tax-Free Maturity Payout: ₹7,25,000 + ₹6,09,000 + ₹1,00,000 = ₹14,34,000, nearly tripling the initial capital with 100% sovereign safety.
