SUN LIFE CARE

healeR SUNDARAVADANAM

LIC's Single Premium Endowment Plan (Plan No. 717)

LIC's Single Premium Endowment Plan (Plan No. 717)

LIC's Single Premium Endowment Plan (Plan No. 717) is a traditional, non-linked, participating life insurance policy that combines long-term savings with insurance protection through a one-time, lump-sum premium payment.

Modified under the new IRDAI regulations, it functions similarly to a bank Fixed Deposit (FD) but offers the added benefit of a life insurance cover and tax advantages. [1, 2, 3, 4, 5]

🔎 Key Parameters & Eligibility Conditions

| Parameter | Minimum Limits | Maximum Limits |

| Entry Age | 90 days (Completed) | 65 years |

| Policy Term | 10 years | 25 years |

| Maturity Age | — | 75 years |

| Basic Sum Assured | ₹50,000 | No Upper Limit (Subject to underwriting) |

| Premium Payment | One-time payment only |

💵 Core Policy Benefits

Maturity Benefit:

If the policyholder survives to the end of the policy term, a lump sum is paid out.

Death Benefit:

If death occurs before the commencement of risk:

Nominees receive the Single Premium paid (excluding taxes/extra premiums) without interest.

* If death occurs after the commencement of risk: Nominees receive the Sum Assured on Death + Vested Bonuses. (Note: Sum Assured on Death is typically defined as higher of Basic Sum Assured or 1.25× the Single Premium paid depending on entry age.) [4, 6]

* Commencement of Risk for Minors: For children under 8 years of age, life risk cover begins either 2 years from the policy start date or upon attaining 8 years of age, whichever occurs earlier. For those aged 8 and above, risk cover starts immediately. [4, 7]

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## 💡 Liquidity, Loans & Tax Rules

* Policy Loan: You can apply for a loan after 3 months from policy issuance. Loan values vary between 50% to 80% of the Surrender Value, depending on the policy year. [2]

* Guaranteed Surrender: If you need to exit the policy early, the guaranteed surrender value is 75% of the premium within the first 3 years, and 90% from the 4th year onwards (excluding taxes and rider premiums). [2]

* Tax Benefits: You are eligible for tax deductions on the single premium under Section 80C. The maturity amount is also tax-free under Section 10(10D), provided the Basic Sum Assured is at least 10 times the single premium paid. [4, 8]

To calculate an exact quotation or return illustration for this plan, please share:

* The age of the person to be insured.

* The preferred policy term (between 10 and 25 years).

* The investment budget or the desired Sum Assured amount.

[1] [https://www.youtube.com](https://www.youtube.com/watch?v=vhxw3DP9SJg)

[2] [https://www.policybazaar.com](https://www.policybazaar.com/insurance-companies/lic-india-investment-plans/single-premium-endowment-plan/)

[3] [https://licplancalculator.com](https://licplancalculator.com/lic-single-premium-endowment-plan-717/)

[4] [https://sinduinsure.in](https://sinduinsure.in/services/lic-single-premium-endowment-717)

[5] [https://www.youtube.com](https://www.youtube.com/watch?v=oUT2yxwRSA4)

[6] [https://licplancalculator.com](https://licplancalculator.com/lic-single-premium-endowment-plan-717/)

[7] [https://www.youtube.com](https://www.youtube.com/watch?v=RxSyk6THARI)

[8] [https://www.magicgyan.com](http://www.magicgyan.com/MobileAppPages/ProdPlanDetails.asp?PlanNo=717)

LIC New Jeevan Anand (Plan No. 715)

LIC New Jeevan Anand (Plan No. 715) is one of the most popular and unique financial products offered by the Life Insurance Corporation of India (LIC). It is a non-linked, participating, individual, life assurance plan that offers a powerful combination of protection and savings under its signature tagline: "Zindagi Ke Saath Bhi, Zindagi Ke Baad Bhi" (With you during life, and after life).

Its standout feature is the dual benefit: you receive a lump sum maturity amount at the end of the policy term, but your life insurance cover does not end there. It continues as a free life cover for the rest of your life (up to age 100).

🔎 Eligibility Criteria & Restrictions

Before purchasing, verify that you meet the following absolute parameters:

Minimum Age at Entry: 18 years (completed)
Maximum Age at Entry: 50 years (nearer birthday)
Maximum Maturity Age: 75 years (for the premium-paying term)
Policy Term: 15 to 35 years
Minimum Basic Sum Assured: ₹1,00,000
Maximum Basic Sum Assured: No limit (subject to underwriting and your income limits)

🗒 Key Financial Benefits

1. Guaranteed Maturity Benefit

If you survive till the end of the chosen policy term and have paid all premiums regularly, you will receive a substantial lump sum:

Calculation: Basic Sum Assured + Accrued Vested Reversionary Bonuses + Final Additional Bonus (if any).
Once this amount is paid, the regular premium-paying portion of the contract closes, but the lifetime security clause activates.

2. Lifelong Protection Benefit (Post-Maturity)

Unlike standard endowment plans where the relationship ends after the maturity payout, Plan 715 keeps a permanent safety net active. After your policy matures, you pay ₹0 in premiums, yet you hold a lifelong insurance shield. Upon the eventual death of the life assured at any time post-maturity (up to age 100), the nominee receives the Basic Sum Assured once again in full.

3. Death Benefit (During the Policy Term)

If the policyholder passes away during the active premium-paying term, the family is financially protected. The death benefit is defined as the "Sum Assured on Death" plus accumulated bonuses.

Sum Assured on Death is defined as the higher of:
- 125% of the Basic Sum Assured
- 7 times the annualized premium
Note: This overall death benefit will never be less than 105% of the total premiums paid up to the date of death.

📊 Practical Financial Framework (Simulated Example)

Proposer Age: 30 Years
Chosen Policy Term: 21 Years
Selected Sum Assured: ₹5,00,000

The individual will pay premiums for 21 years. At age 51, assuming all conditions are met, they will receive an estimated maturity sum of roughly ₹10,00,000 to ₹11,00,000 (composed of the ₹5L base + accumulated LIC performance bonuses).

After cashing this check, they pay nothing further. However, a ₹5,00,000 life insurance plan stays locked in place completely free. If they live to age 85 and pass away, their nominee receives an additional fresh cash payout of ₹5,00,000.

⚠️ Wealth-Degrading Guardrails & Market Realities:

Bonus Fluctuations: LIC declaration rates fluctuate annually based on sovereign fund performance. The final maturity is a variable projection, not a mathematically fixed guarantee.
Surrender Penalties: If you exit or stop paying premiums before completing at least 2 full years, you will suffer severe financial penalties and may lose a major portion of your invested principal.

💡 Hidden Costs, Taxes, & Utilities

Loan Availability: After completing 2 full years of active premium payments, you can leverage the policy's Surrender Value to take out a low-interest loan directly from LIC for liquidity emergencies.
Tax Optimization: Premiums paid qualify for deductions under Section 80C, and the maturity/death proceeds are fully tax-exempt under Section 10(10D) of the Income Tax Act.
Rider Customization: You can enhance the policy by attaching paid riders like the Accidental Death and Disability Benefit Rider or the New Critical Illness Benefit Rider.