This unique single premium plan allows policyholders to make a one-time premium payment. Therefore, the premium can be paid when one is financially stable and the policyholder need not worry about the regular premiums that need to be paid in the future. The policy is a with-profits plan i.e. the policy participates in the profits of the insurance company. The profits are shared with the policyholder in the form of bonuses. The highlight of this policy is that even if the premium-payment term is completed, the bonus is shared with the life assured until his/her death.
The entry age to purchase the Whole Life Policy is specified by the corporation.
|Minimum entry age||12 years|
|Maximum entry age||60 years|
The total sum that is payable to the beneficiaries of the policy on the death of the policyholder is called the sum assured.
|Minimum sum assured||Rs.50,000|
|Maximum sum assured||No limit|
The periodic payments that are made towards the policy to cover the policyholder’s risk is known as the premium.
|Minimum Policy Term||5 years|
|Maximum Policy Term||55 years or upto the age of 70|
|Maximum Premium Payment Term||40 years or upto the age of 80|
*Premiums vary based on age, location, plan term and other factors
|Death Benefit||The sum assured along with all bonuses are provided as a lump sum to the policyholder.|
|Maturity Benefit||There is no certain maturity date but the policyholder can avail the option of claiming the sum assured along with the bonuses, provided the policy has been in force for 40 years and the policyholder has attained 80 years of age.|
|Survival Benefit||On attaining the age of 80 or on completion of 40 years of the term, the sum assured along with the accrued bonuses are provided to the policyholder.|
Other Key Features
|Surrender Benefit||The guaranteed surrender value is 90% of the single premium paid, provided the policy has been in force for 3 years. The special surrender value is paid by the company and is generally equal to or more than the guaranteed surrender value. The insurer will pay the higher one of the two.|
|Final Bonus||If the policy has been in force for a minimum specified period, the policyholder will be eligible for a final additional bonus.|
|Simple Reversionary Bonus||A share of the profits made by the company is shared with the policyholder as the simple reversionary bonus. At the end of each financial year, the bonus is calculated per thousand sum assured.|
|Range of Policies||LIC offers Aam Aadmi Bima Yojna, micro insurance plans and many other plans for prospective policyholders to choose from.|
|Phone Services||LIC has customer zones scattered across the country. Policyholders can make quick calls to check the status or enquire about their policies.|
|SMS Enquiry||A simple text that follows a set template will help policyholders check on their policies.|
|Online Portal||Registered users can login to their respective accounts to view necessary details about the policies.|
|Premium Collection Channels||Many offline and online channels are available for premium payment. ATM, the LIC website, authorised banks like Axis bank, to name a few.|
LIC being one of the most well-known names in the life insurance industry bagged 27 awards in the year 2016-2017. The claim settlement ratio or the number of claims settled against the total number of claims made was 98.31% in the same year.
Note: This plan has been withdrawn by LIC.