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LIC’s NEW Plan 2014 – Single Premium Endowment Plan (817) Circular

LIC logoLIC‘s Single Premium Endowment Plan (Table No.817) has been introduced with effect from 1st January 2014.

LIC’s Single Premium Endowment Plan is a participating non-linked savings cum protection plan, where premium is paid in lump sum at the outset of the policy. This combination provides financial protection against death during the policy term with the provision of payment of lumpsum at the end of the selected policy term in case of his/her survival. This plan also takes care of liquidity needs through its loan facility.

Death Benefit:

a) On death during the policy term before the date of commencement of risk: Return of single premium excluding service tax and extra premium, if any, without interest.

b) On death during the policy term after the date of commencement of risk: Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any.

Maturity Benefit: Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.

Participation in profits: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation.

Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity on such terms and conditions as may be declared by the Corporation from time to time.


  1. Minimum entry age                    : 90 days (completed)
  2. Maximum entry age                   :  65 years (nearest birthday)
  3. Maximum maturity age:            : 75 years (nearest birthday)
  4. Minimum policy term                : 10 years
  5. Minimum age at maturity         : 18 years (completed)
  6. Maximum policy term                : 25 years
  7. Minimum Sum Assured             : Rs.50,000
  8. Maximum Sum assured             : No limit
  9. Sum Assured will be in multiples of Rs.5,000 /- only.
  10. Premium payment mode            : Single Premium only

Date of Commencement of risk:In case the age of Life Assured at entry is less than 8 years, risk under this plan will commence either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.


The sample premium rates (exclusive of taxes) are as under: -

 Single Premium per 1000 Sum Assured

Age (Nearest birthday) 






























High Sum Assured Rebates:

Sum Assured (S.A)                Rebate (Rs.)
50,000 to 95,000                          Nil
1, 00,000 to 1, 95,000                 18%o S.A.
2, 00,000 to 2, 95,000                 25%o S.A.
3, 00,000 and above                    30%o S.A.

1. LOAN:

Loan can be availed under this plan any time after completion of first policy year and subject to terms and conditions as the company may specify from time to time.


Buying a life insurance contract is a long term commitment. However, surrender value is available under the plan on earlier termination of the contract.

The Guaranteed Surrender Value allowable shall be as under:

  1. First year:  70% of the Single premium excluding service tax and extra premium, if any
  2. Thereafter: 90% of the Single premium excluding service tax and extra premium, if any.

In addition, the surrender value of vested simple reversionary bonuses, if any, shall also be payable, which is equal to vested bonuses multiplied by the surrender value factor applicable to vested bonuses. These factors will depend on the policy term and policy year in which the policy is surrendered and specified as below:

The Corporation may, however, pay Special Surrender Value as applicable as on date of surrender provided the same is higher than Guaranteed Surrender Value.

3. TAXES:  

Taxes, if any, shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of tax payable as per the prevailing rates shall be payable by the policyholder on premiums including extra premiums, if any. The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan.


If the policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days from the date of receipt of the policy stating the reason of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of the single premium deposited after deducting the proportionate risk premium for the period on cover, charges for medical examination, special reports, if any, and stamp duty.


The policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of 90% of the single premium paid excluding taxes and any extra premium paid.

For more details of the plan Download circular pdf

Click on the following links to Download the Ready Reckoner

Download Other circulars:

Other NEW Plans to expect in JANUARY 2014

LIC New Plans in February 2014

Plan Analysis Ad In magazine

Intellectual Nourishment

14 comments on “LIC’s NEW Plan 2014 – Single Premium Endowment Plan (817) Circular

  1. Mahesh L Darekar
    January 2, 2014

    Thanks IIOE- I am so happy that I am updated with the latest Plan with LIC circulars. It nice to be connected with IIOE.

    • harshadavispute
      January 2, 2014

      Mr. Darekar you are most welcome. It’s our pleasure to keep you updated. All the best!

  2. pathikdaslic
    January 2, 2014

    Thank you IIOE. it is nice to be connected with IIOE. But, there is a problem coming when I try to download your ready reconer it is not opening. Thanking you IIOE.

    • harshadavispute
      January 4, 2014

      You are most welcome. Please check if you have Adobe Reader. If you don’t have it you need to first download it and then try to download the Reckoner.

  3. Madhu Jaiswal
    January 6, 2014

    Thank You IIOE.first time visiting your site.your site is early bird.i am happy to connected you.

    • harshadavispute
      January 7, 2014

      Madhu, its our pleasure to have readers like you. We’ll try our best to make it even better for you.

  4. Madhu Jaiswal
    January 6, 2014

    Please post ready reckoner of plan no-814/815/816/820/821.

  5. S. Muthuselvan
    January 13, 2014

    This is my first time visit. As a LIC agent, it is very useful about the LIC’s new policies.

    January 22, 2014


    • harshadavispute
      January 25, 2014

      Hi Hemant. Here are some tips on how to sell big policies. Just follow this link. http://iioe.wordpress.com/2013/01/12/dream-big-sell-big/ If you wish to know more, you can also join our Basic Course where we share numerous sales tips and ideas. Thousands of agents have seen a complete transformation in their businesses as well as personal lives after joining this course. To know more give us a call at 022-61416703/04 immediately and register your name for the course in your area.

  7. som
    February 19, 2014

    Som Here, there is no comment about plan no. 817. If customer wants to add accident benefit then how much will be add and if insured person dead in accident then, nominee wil get double amount of SA, if policy applied for kid, what is the maturity amount and that amount will get immediately his/her proposer is death in accident.

  8. Krish Roy
    February 20, 2014

    LIC’s NEW Plan 2014 – Single Premium Endowment Plan (817) Circular does show that for a premium of more than 300000 the rebate to be given is 30%. But LIC office at Visakhapatnam is not agreeing to that when I applied for the same. May pl comment on that whether their own circular is wrong.

    Krish Roy

  9. You actually make it seem so easy with your
    presentation but I find this matter to be actually something which I think I would never understand.
    It seems too complex and extremely broad for me.
    I’m looking forward for your next post, I will try to get the hang of it!

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