LIC Single Premium Endowment Plan: Complete Guide

Quick Overview

LIC Single Premium Endowment Plan (Plan No. 717) is a one-time investment, non-linked participating plan that combines life cover with long-term savings, without requiring ongoing premium payments.

Life Insurance Corporation of India (LIC), established in 1956, is India’s oldest and most trusted life insurer, backed by the Government of India. It holds over 55% market share and has a vast distribution network of more than 14.8 lakh agents across the country.

Not everyone wants to commit to paying premiums every year, especially when choosing a life insurance plan. The LIC Single Premium Endowment Plan offers a one-time payment option and can be purchased offline through licensed agents, corporate agents, brokers, and insurance marketing firms.

This guide explains how the plan works, its key features and drawbacks, the returns you can expect, and whether it makes sense compared with term insurance.

Take Note: The currently available plan is Plan 717. LIC had earlier launched Plan 917 under the same name on February 1, 2020, which was withdrawn on October 1, 2024.

LIC: Performance Metrics

Metrics/Values	Average FY 22-25	Industry Average	Key Insights
Claim Settlement Ratio (CSR)	98.35%	98.66%	Strong CSR (above the recommended mark of 97%) shows high reliability in honoring claims, reinforcing trust backed by government ownership.
Amount Settlement Ratio (ASR)	95.48%	94.83%	High ASR (above 90% is considered good) indicates that large and small value claims are treated fairly, supporting financial dependability.
Annual Business Volume (in Cr)	₹2,27,169	₹3,411	Massive business volume (significantly above the recommended ₹5000 cr mark) reflects LIC’s dominant scale and nationwide reach.
Amount Paid in Death Claims (in Cr)	₹19,017.6	₹195.05	High total death claims paid (above ₹200 cr is ideal) highlights strong financial capacity to handle large claim obligations.
Volume of Complaints per 10,000 claims	4.57	17.67	Low complaint ratio suggests relatively better customer experience despite large-scale operations.
Solvency Ratio	2.00x	2.04x	A healthy solvency ratio shows that LIC maintains strong financial reserves, ensuring long-term stability.

Note: The above metrics reflect the overall performance of LIC and are not limited to its endowment portfolio.

Eligibility Criteria of LIC Single Premium Endowment Plan

Eligibility	Criteria
Entry Age Band	30 days to 65 years
Policy Term Range	10 years to 25 years
Maturity Age Range	18 years to 75 years
Payout Options	The death benefit can be received in installments over 5, 10, or 15 years or as a lump sum
Premium Payment Term	Single

Key Features of LIC Single Premium Endowment Plan

Death Benefit: After risk commencement, the nominee receives the sum assured on death along with any vested simple reversionary bonuses and a final additional bonus, if declared. For those entering before age 50, the payout is the higher of the basic sum assured or 1.25 times the single premium. For ages 50 and above, it is the higher of the basic sum assured or 1.10 times the single premium.
Maturity Benefit: On survival till maturity, the policy pays the basic sum assured along with vested bonuses and any final additional bonus.
Rider Options: You can opt for optional riders like the Accidental Death and Disability Benefit Rider, and the New Term Assurance Rider can be added at inception.
Surrender Value: The policy can be surrendered anytime. The payout is the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). Guaranteed value is 75% of the single premium in the first 3 years and 90% thereafter, excluding taxes and rider premiums.
Participating Plan: The policy is eligible for yearly simple reversionary bonuses and a final additional bonus, if declared by the insurer.

Take Note: Participating in LIC means your policy earns bonuses from the insurer’s profits over time. These bonuses are not guaranteed upfront but are added over time, increasing your overall payout at maturity or death.

Premiums of LIC Single Premium Endowment Plan

Age/Policy Term	10 Years	15 Years	25 Years
20	₹77,985	₹66,775	₹50,255
30	₹78,010	₹66,865	₹50,695
40	₹78,180	₹67,335	₹52,340
50	₹78,800	₹68,800	₹56,160

Note: The sample single premium is illustrative and based on a basic sum assured of ₹1 lakh, excluding taxes. The figures are taken from the Single Premium Endowment Plan brochure. Returns may include both guaranteed components and variable elements that depend on the insurer’s future performance.

Drawbacks of LIC Single Premium Endowment Plan

High Upfront Cost: Since it is a single premium plan, you need to invest a large lump sum at the start, which reduces liquidity and flexibility compared to regular-pay policies.
Limited Life Cover: The death benefit is usually around 1.10x to 1.25x of the premium plus bonuses, making it less efficient than term insurance for pure protection needs.
Uncertain Returns: Bonuses depend on insurer performance and are not guaranteed until declared, so the final maturity value can vary.
Surrender Losses: Although surrender is allowed, exiting early can lead to losses, especially in the first few years, when only a portion of the premium is returned.
Delayed Risk Cover for Minors: If the life assured enters below age 8, full risk cover does not start immediately and begins later, either after 2 years from policy start or on reaching age 8, whichever is earlier.
Taxation of Proceeds: For non-ULIP life insurance policies issued on or after 1 April 2023, maturity proceeds may lose tax exemption under Section 10(10D) if the annual premium exceeds ₹5 lakh, which can happen in high-value or single premium plans.

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Endowment vs Pure Term Insurance: Which is Better?

The difference between endowment and term plans lies in their core purpose: protection versus savings. Pure term insurance offers high life cover at a low premium and focuses only on financial protection for your family in case of an untimely death.

In contrast, endowment plans combine insurance with savings, offering a maturity benefit along with life cover, but usually come with higher premiums and lower coverage.

Take a look at the comparison table for a clearer understanding of the plans:

Aspect	Endowment Plan	Term Insurance
Purpose	Limited protection with savings	Pure life protection
Premiums	High (₹60,000-1,00,000 for ₹10-15 lakh cover)	Low (₹12,000-25,000 for ₹1 crore, depending on age)
Life Cover	Lower (5-10x annual premiums)	High (20-30x yearly income)
Maturity Benefit	Yes, but comes at a high cost	Nil (unless ROP opted)
Returns	4–6% (barely beats inflation)	Nil
Flexibility	Mostly rigid and limited customization	More choices and rider options
Surrender Value	Available as per the terms and conditions and IRDAI rules	None unless opted for ROP or a zero-cost term plan
Liquidity	Money is locked until maturity	Premium savings can be invested in redeemable FDs, mutual funds
Best For	Only worth considering if someone is very risk-averse or not eligible for a term plan	Anyone who needs low-cost, high-level protection for their financial dependents

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Conclusion

The LIC Single Premium Endowment Plan may suit individuals with a lump sum who prefer conservative savings along with some life cover and are comfortable with bonus-based returns.

Having said that, the policy lacks advanced features such as premium breaks and instant claim payouts. Additionally, it is usually not the best choice if your main goal is high life cover or returns that outperform inflation.

If you are looking for a term plan from established term insurers, we recommend the best term insurance plans, which align with your long-term goals.

Disclaimer: LIC is not a partner of Ditto, and we are fundamentally against plans that combine insurance and investment, as they compromise on both protection and returns. The information provided is based on LIC’s official website and other publicly available sources and is for informational purposes only.

Frequently Asked Questions

Where can I check the exact GSV and SSV values?

The Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV) vary by policy year. For exact figures, it’s best to refer to the benefit illustration document provided at purchase, as it clearly outlines year-wise values.

Can I take a loan against the LIC single premium endowment plan (717)?

Yes, you can take a loan once the policy builds surrender value. This is usually available after three months from policy issuance or after the free-look period, whichever is later, subject to applicable terms.

What is the free-look period?

A free look period refers to the time window during which you can review your policy and return it within 30 days of receiving the document, if you are not satisfied with the terms.

Are there rules for choosing the sum assured?

Yes, the sum assured must be selected in specific multiples depending on the coverage range. This ensures standardized policy structuring and may influence the premium and benefits.

What happens if the policy is taken out for a minor?

If issued on a minor’s life, the policy automatically transfers to them once they turn 18. From that point, it becomes a direct contract between the insurer and the life assured.

Last updated on: 22 Mar, 2026