Guide to LIC Single Premium Endowment Plan (Table No. 717 / 917 / 817 / 17)
In the spectrum of sovereign wealth accumulation and life protection instruments in India, LIC's Single Premium Endowment Plan (Table No. 717 / Plan 917 / UIN: 512N283V02) occupies a prestigious, unique position. Introduced originally as Table 17 and subsequently re-notified under IRDAI regulations as Table 817 and Table 917 / 717, this plan is tailored specifically for investors who possess lump-sum capital and wish to avoid the ongoing liability of annual or monthly premium commitments.
Under Plan 717 / 917, you make a single one-time deposit at the inception of the policy. Throughout the chosen policy duration (10 to 25 years), your capital grows securely with annual compound Simple Reversionary Bonuses (SRB) and Final Additional Bonuses (FAB), while providing comprehensive life insurance cover to safeguard your family.
Unlike bank fixed deposits (FDs) where the interest earned is taxed every year at your marginal tax slab, the maturity corpus from LIC Single Premium Endowment is completely tax-free under Section 10(10D) of the Income Tax Act, while offering unmatched safety backed by the sovereign guarantee of the Government of India under Section 37 of the LIC Act 1956.
Statutory Eligibility Criteria & Policy Parameters Matrix
The table below outlines the statutory underwriting limits and eligibility requirements governed by IRDAI regulations for Plan 717 / 917:
| Parameter | Statutory Limit (Plan 717 / 917 / 817) | Operational Remarks |
|---|---|---|
| Minimum Age at Entry | 90 Days (Completed) | Enables parents to invest lump-sum gifts for newborn children. |
| Maximum Age at Entry | 65 Years (Nearer Birthday) | Allows senior citizens and retirees to invest surplus retirement funds. |
| Minimum Policy Term | 10 Years | Provides disciplined medium-term guaranteed capital growth. |
| Maximum Policy Term | 25 Years | Allows maximum compounding of annual reversionary bonuses. |
| Minimum Maturity Age | 18 Years (Completed) | Policy cannot mature before the child reaches legal adulthood. |
| Maximum Maturity Age | 75 Years (Nearer Birthday) | Age at entry plus policy term cannot exceed 75 years. |
| Premium Paying Mode | Single Premium Only | One-time upfront payment; zero recurring premium liability. |
| Minimum Basic Sum Assured | ₹50,000 | Multiples of ₹5,000 up to ₹1,00,000; multiples of ₹10,000 thereafter. |
| Maximum Basic Sum Assured | No Upper Limit | Subject to financial underwriting and source-of-funds verification. |
| Available Riders | Accidental Death & Disability Benefit (ADDB), Term Rider | Provides optional single-premium accidental death coverage. |
Actuarial Mathematics Behind Plan 717 / 917 Calculations
The return mechanics of LIC Single Premium Endowment are computed using participating endowment valuation rules. The primary components include Single Tabular Premium, High Sum Assured Rebates, Simple Reversionary Bonuses, and Final Additional Bonuses.
1. Maturity Benefit Calculation Formula
On surviving the chosen policy term, the lump-sum tax-free maturity payout is calculated as:
Where:
• Accrued Reversionary Bonus = $\text{Basic Sum Assured} \times \left(\frac{\text{Annual Declared Bonus Rate}}{1000}\right) \times \text{Policy Term (Years)}$
• FAB = $\text{Basic Sum Assured} \times \left(\frac{\text{FAB Rate}}{1000}\right)$ (Applicable for policy terms $\ge 15$ years).
2. Death Benefit Guarantee Formula
In the unfortunate event of the life assured's demise during the policy term, LIC pays the full death benefit to the nominee:
Where Sum Assured on Death is defined as the higher of: 1) Basic Sum Assured; or 2) 1.25 times the Single Tabular Premium (excluding taxes and rider charges). If the Accidental Death & Disability Benefit Rider (ADDB) is selected, an additional 100% Sum Assured is paid immediately.
3. Single Net Premium & GST Calculation
Tabular single premium rates are discounted for higher coverage slabs before applying statutory Goods and Services Tax (GST):
High Sum Assured Rebates (Discounts) for Plan 717 / 917
To provide attractive economies of scale for large single investments, LIC offers substantial discounts directly on the single tabular premium per ₹1,000 Sum Assured:
| Basic Sum Assured Slab | High SA Rebate (per ₹1,000 SA) | Discount on ₹10 Lakh Policy | Discount on ₹50 Lakh Policy |
|---|---|---|---|
| ₹50,000 to ₹95,000 | Nil | — | — |
| ₹1,00,000 to ₹1,95,000 | ₹18.00 per ₹1,000 SA | — | — |
| ₹2,00,000 to ₹2,95,000 | ₹25.00 per ₹1,000 SA | — | — |
| ₹3,00,000 and Above | ₹30.00 per ₹1,000 SA | ₹30,000 Instant Savings | ₹1,50,000 Instant Savings |
Declared Simple Reversionary Bonus Rates & FAB Analysis for Plan 717 / 917
Even though you pay premium only once, your policy participates in LIC's annual actuarial valuation profits throughout the entire policy term:
| Policy Term (Years) | Declared Bonus Rate (per ₹1k SA / Year) | Bonus Accrual on ₹10 Lakh SA | Expected FAB Slab (per ₹1k SA) |
|---|---|---|---|
| 10 to 15 Years Term | ₹36 – ₹40 per ₹1,000 SA | ₹40,000 / year (Total: ₹6,00,000 for 15 yrs) | ₹10 – ₹25 |
| 16 to 20 Years Term | ₹42 – ₹44 per ₹1,000 SA | ₹44,000 / year (Total: ₹8,80,000 for 20 yrs) | ₹40 – ₹70 |
| 21 to 25 Years Term | ₹47 – ₹48 per ₹1,000 SA | ₹48,000 / year (Total: ₹12,00,000 for 25 yrs) | ₹200 – ₹450 |
Instant Liquidity: Policy Loan & Surrender Rules
One of the most powerful advantages of LIC Single Premium Endowment is its superior liquidity compared to regular pay plans:
- Policy Loan After Just 3 Months: Unlike regular plans which require 2 full years, you can avail a loan on Plan 717 / 917 after completion of just 3 months from policy issuance. You can borrow up to 90% of the Surrender Value at competitive interest rates (~9.5% p.a.).
- Surrender Value from Year 1: You can surrender the policy at any time during the policy term.
• 1st Year GSV: 75% of the Single Premium paid (excluding taxes and rider charges).
• 2nd Year Onwards GSV: 90% of the Single Premium paid + surrender value of all accrued vested bonuses. - Special Surrender Value (SSV): LIC actuarially calculates the SSV based on prevailing financial conditions, which is generally substantially higher than the Guaranteed Surrender Value.
Tax Benefits & Exemption Analysis Under the Income Tax Act
Understanding the statutory tax treatment of Single Premium policies is vital for high-net-worth investors:
- Section 80C Tax Deduction: The single premium qualifies for annual deductions under Section 80C up to ₹1,50,000 under the Old Tax Regime. (Note: Under Section 80C, deduction is allowed up to 10% of the Basic Sum Assured).
- Section 10(10D) Tax-Free Maturity: The entire maturity payout (Sum Assured + Bonus + FAB) and death claim proceeds are 100% tax-free provided the single premium does not exceed 10% of the Basic Sum Assured. If the premium exceeds 10%, the income component is taxable as per capital gains / other sources rules.
Plan Comparison: Single Premium (717/917) vs Regular Endowment (914) vs Bank Fixed Deposit (FD)
The table below illustrates why smart investors use LIC Single Premium Endowment to build safe long-term generational wealth:
| Feature | LIC Single Premium (717 / 917) | LIC Regular Endowment (914) | Bank Fixed Deposit (FD) |
|---|---|---|---|
| Premium Frequency | Single (One-Time Only) | Yearly / Monthly (Recurring) | Single (One-Time) |
| Life Risk Cover | YES (100% SA + Bonuses) | YES (100% SA + Bonuses) | NO (Zero Life Cover) |
| Tax on Maturity / Returns | 100% Tax-Free (Sec 10(10D)) | 100% Tax-Free (Sec 10(10D)) | Fully Taxable every year |
| Loan Facility | Available after 3 Months | Available after 2 Years | Available (Premature penalty) |
| Sovereign Guarantee | YES (Sec 37 LIC Act 1956) | YES (Sec 37 LIC Act 1956) | Up to ₹5 Lakh (DICGC) |
| Re-investment Risk | Zero (Rate locked for 25 yrs) | Zero (Rate locked for term) | High (FD rates change on renewal) |
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Frequently Asked Questions (FAQ) – Plan 717 / 917
What is the minimum and maximum entry age for Plan 717 / 917?
The minimum entry age is 90 days (completed), making it ideal for creating a guaranteed child education fund. The maximum entry age is 65 years (nearer birthday), allowing senior citizens to invest surplus lump sums safely.
When does life risk cover start for minor children?
For children who enter below 8 years of age, risk cover starts either 2 years from the date of policy inception or upon completion of 8 years of age, whichever is earlier. For entry ages 8 and above, risk cover commences immediately upon policy issuance.
Can I take a policy loan against LIC Single Premium Endowment?
Yes. You can take a loan up to 90% of the surrender value after completion of just 3 months from the date of policy issuance, providing rapid emergency liquidity.
How much GST is applicable on single premium policies?
Statutory Goods and Services Tax (GST) on single premium life assurance policies is 4.50% on the single base premium and 18.00% on optional rider premiums.
How do I buy LIC Single Premium Endowment online with paperless onboarding?
You can use the WhatsApp buttons on this page to connect directly with Authorized LIC Advisor Rakesh (Agent Code: LIC10031212). You will receive an official proposal quotation and secure digital onboarding link for 100% paperless policy issuance.