LIC’s new plans 2014-Single Premium Endowment Plan (No.817)

From today onward LIC started to offer new plans which are according to new IRDA Regulations. LIC closed its existing plans by 31st Dec 2013. So from this month onward you will find plenty of new featured plans. The first plan in the list is “Single Premium Endowment Plan, Table No.817”. Let see what it actually offers.

It is a single premium policy and contains the below features.

Single Premium Endowment Plan (No.817)

Below is the loan availability % based on the total surrender value.

Single Premium Endowment Plan (No.817) Loan

So is it beneficial to invest?

Let us consider a person whose age is 30 years, interested to invest Rs.1,00,000 for a term of 25 years, then the premium will be Rs.48,545 (Including 3.09% Service Tax). It looks great at first instant as for getting SA of Rs.1,00,000 you are paying less than half of it. But do remember that this is the traditional plan and you need to wait for 25 years. In terms of liquidity this plan seems good. But when you consider as an investment tool then my suggestion will be “STAY AWAY”.




  1. Prasad KulkarniPrasad Kulkarni says

    Dear Sir,

    I am an NRI age 47 and looking for Term Insurance. As a NRI will I get any Term cover. Also suggest if Jeeven Anand is suitable option as it offers Life Cover and lumsum amout at the age of 62 and life cover remains till death.
    I can invest upto 1.5 lakhs per annum. Pls advice.

    Thanks & Regds


    • Basavaraj Tonagatti says

      Prasad-Check with insurers like HDFC, ICICI, Max or Bajaj (just naming few, you have option to choose others too). You can go with Jeevan Anand if you feel the return of 5% to 6% is BEST for you. Otherwise, stay away from this plan.

  2. vinodvinod says

    Please suggest me best policy with higher rate of intrest for my Daughter age 04 Year and my age is 37 Years. Which i can i give to her .

    I can invest yearly Rs 24000/-
    Please help and suggest me.

      • InformeInforme says

        I am quite impressed with your advice to all the members .I too have to made a clarification as I am 40 yrs old private employee invested Rs.36,600/- for my daughter’s higher education with LIC Endowment Plan for 2015 .Can you suggest me does it yield any benefit?I am additional plan of investing of Rs.50,000/- with some good returns for my retired life or my daughter’s marriage.Can you suggest me where to invest?Which is best firm ?Can i trust private firms ?If so which is the best suitable one .PI suggest…


        • Basavaraj Tonagatti says

          Informe-This LIC plan fetch you return of around 5% to 6%. If you feel that’s a great return then go ahead. Before proceeding for fresh investment, I suggest you to analyse your current investment, why you want to invest, what is your target amount and what is your expected return.

  3. krishnkrishn says

    Hi Basavaraj,

    I am software engineer in IT company. For tax saving i have opened a LIC New endowment plan with premium as 54500/- yearly for 20 years. I am 25 years old unmarried. I had already running policy of 18k yearly. I wanted to know what i did is right or not? If it is not please tell me the way i can make this policy cancelled or should i continue this?
    And what way i can invest so i can get more benefits in term of money as well life cover.

    • Basavaraj Tonagatti says

      Krishan-It is good decision if you are going to satisfy with return of around 6% and feel the insurance coverage this plan offers is suffice in case of your sudden death. Otherwise think seriously to come out.

  4. Deepak GungunDeepak Gungun says

    Hello Sir,
    Nice to see here that you are solving problem for many people. I am also hoping some better solution for me .
    I am 30 years old married man , and also I have a 2.5 year old kid.
    I dont have any policy or insurance. Could you please suggest me any good product which give me high return and also give protection to my family for any mishap happen to me. I can invest monthy 3000-4000/PM.

    I am looking for LIC product which is more trustful as compare to private player.

  5. samrita says

    Hi.I want to invest 3 lacs single premium for 20yr for my 1yr old daughter.pls suggest me which plan will b better.also suggest some other option to invest regularly for her studies n marriage in future.

  6. gopalgopal says

    i want a child policy for my daughter who is 2 months old kindly suggest i can invest upto Rs 50000 yearly. kindly suggest

  7. KhalilKhalil says

    My wife having a LIC single premium(155783.00) endowment plan under table was made on 07.02.2014.
    Shall it consider in tax saving of financial year 2014-2015.Please advice me

  8. Sanjeev KumarSanjeev Kumar says


    I want to invest 5000 monthly for my one year kid for 10 years from today so that he could start getting a healthy sum per month after completing his 17 years. plz suggest me a suitable lic plan.

    • Basavaraj Tonagatti says

      Mrs.Mala-Term insurance and to be clear insurance is required when someone financially dependent on him or her. So in your case I don’t think insurance is not required at this stage. Because as per my assumption, none is financially depend on your son.

  9. raja senraja sen says


    i quite impressed with your financial advice. Sir my investment portfolio i am investing 70% amount in PPF and 15% on ulip rest on FD’s.
    Plz suggest it is okey or some change will be beneficial. Secondly many time you have suggested to go for mutual find requested to advice which mutual funds are beneficial.

    • Basavaraj Tonagatti says

      Raja-PPF must not be around 10% to 15% of your investment. Also stay away from ULIPs. Because of it’s cost structure and liquidity issue. Instead why not you opt equity mutual funds for your long term goals? Investing must be based on your goals.

  10. HimanshuHimanshu says

    Hello, I would like to invest 3lacs in a single premium policy for my 6 months old kid focussing toward his higher studies. Which policy would be the best suited for the same?

    • Basavaraj Tonagatti says

      Himanshu-NO POLICY will suite. Because you are claiming for your kid’s future and tenure is long. Also return from such policies will be around 5% to 6%. So stay away from any product which combines insurance with investment.

  11. sanju pradhansanju pradhan says

    i would like to invest for 10 yrs with 2500 per month what is the best policy for invest for my child please suggest as my child age is 2yrs

  12. MaheshMahesh says

    I am looking for insurance cum investment for my daughter who’s 5 now.. I want around 5cr by her 25th birthday..suggest best plan


    Hello sir

    i want a 3 lack insurance on single premium plan (plan no 817) for my 1.5 years son for 17 years
    What will be premium and what i get afeter 17 years


    I have gone through your opinion on single premium LIC policy Plan 817. What I could understand from licindia web site, there is a discount of 30%, 25%, 18% on SA, which is unbelievable. As per information received to you it is not 30% but 3%. If it is so 25% should be 2.5% and 18% should be 1.8%. If it is a mistake, it is blunder, misguiding and confusing the customers. It is a major mistake of LIC. One more thing – the page is silent about the tax rebate which is limited to 10% of SA. Am I correct?


        I have received a response from LIC authority, which says %0 means per thousand. This sign is not commonly used in English speaking countries. In other countries,such signs are used to mention ‘particle per thousand’, ‘particle per million’ etc. as %0, %0000 and like manner. Why LIC has used such an uncommon sign which is not understood by common people.
        Thanks, good byed.
        Yours sincerely,
        som rajan

  15. Kathiresan says

    Hello sir,
    I would like to take health insurance for my mom & dad because my dad going to retire next year . So they need some health insurance for their health. Please advice me which best for them.


    Dear Sir,
    As per LIC Plan 817 the following particulars are submitted. Pl convey your valued advice.
    Age : 63 years, term : 10 years, SA : 2.00 lac. One time premium : 151600, Rebate : 25%, Net premium : 101600 + Service tax. After 10 years I’ll get 2.00 lacs+Bonus+additions if any. and risk cover for 10 years. Less 2% TDS . Tax rebate on 10% of 2.0 lac @ 10% = 2000. Please advise me whether it will be beneficial for me.



  18. Ranjit KumarRanjit Kumar says

    Sir my son is 7 months old, i want to invest monthly some money for him. which plan i should take. please advice me my monthly income is 30000 rupees, i can invest 3-5 k per month, please advivce me. thank u

  19. Mrs C K PandeyMrs C K Pandey says

    Sir : My husband is retiring this month end. Kindly let me know best safe investing plans. There is one senior citizen saving post office scheme. Is it ok to invest on it. Kindly suggest – Rgds Mrs Pandey

  20. S ShahS Shah says

    I want to invest and insure for my son aged 18 yrs. May be one item on yearly basis.

    Requesting you to suggest the best plan for my son which will give reasonably good return.

    I m given to understand any Life Insurance Policy will give return in the range of 6 to 8 % Max..

    Pls advise the best option.

    S Shah




  22. prashantprashant says

    I m planning to buy LIC’s jeevan age is 30..and advisor told me for 20 yrs term and 5 lac SA..I need to pay 29561 yrly premium.and after maturity i will get 1080000(FB+SA+FAB ie. 48*500*20 + 5 lac+ 200*500)..and they will provide lifetime insurance to me though policy is matured,so is it good to buy it or i should go for money back plan.plz suggest.

    • Basavaraj Tonagatti says

      Prashant-First ask yourself that after buying this insurance and of your sudden death, for how many years your financial dependents survive with this Rs.5,00,000 amount? Second thing think yourself the quoted return will be suffice to meet your financial goals. With the kind of return around 5% to 6% will you beat the inflation and sustain in long run?? If for all these questions your answer is YES then go ahead.

  23. SaurabhSaurabh says

    Hi Basavaraj,

    Request you to put some light on Single Premium Endowment Plan (No.817) .. One of the agent is saying that if you pay Rs 60,000 then after 18 years you will get 18 Lakhs from this Single Endowment Policy (One time Premium) . I wanted to do this for my son. Please let me know if this is true or not. If not then how much would my son can get returns after 18 yrs ..His Current Age is 1 year..And I can invest Rs 30,000 max. at one time.

    Your help would be really appreciable.


  24. SaurabhSaurabh says

    Hi Basavaraj,

    Request you to put some light on this Single Premium Endowment Plan (No.817) .. One of the agent is saying that if you pay Rs 60,000 then after 18 years you will get 18 Lakhs from this Single Endowment Policy (One time Premium) . I wanted to do this for my son. Please let me know if this is true or not. If not then how much would my son can get returns after 18 yrs ..His Current Age is 2 years..And I can invest Rs 30,000 max. at one time.

  25. RakeshRakesh says

    i want to deposit 1 lakh for year so please assist me and tell me if i will deposit under insurecne then what benefit i will get and after years how much amount i will get.2nd please tell me also if i will deposit under investment then what benefit i will get and finely how much amount i will get.

  26. MithuMithu says

    I have invested Rs 40,000 in LIC Wealth Plus (Single Premium Investment) in year 2010. Now I have been informed by my LIC Agent that NAV is best during this period, hence he suggested that I should close that plan and reinvest the same amount in LIC Table No 817 plan (Single Premium Endowment Plan). Please suggest if it would be a good idea. Thanks Mithu

  27. Pulla Reddy PanditiPulla Reddy Panditi says

    Hi Basavaraj,

    I am looking for best insurance policy.

    My current age 29 Years.I want invest 50,000 p.a.Could you please give suggestion which policy is better

  28. Nikhil DNikhil D says

    Hi Basavaraja,

    I am the one who is newly join to the work, who i’m stay in bangalore. I am thing to make some savings to my feature, i have intrest to make small investment on Rs.500 to Rs.1000 monthly, can you advice me in which sector it is possible to make invest and it also provide safety for my money and good return back after 10year.

    • Basavaraj Tonagatti says

      Nikhil-First buy term insurance online for around 15-20 times of your yearly income, buy health insurance for you and for family, buy accidental insurance as well as critical illness insurance. Create around 6 months household expenses as emergency fund. Once all these are set then we can discuss for investing.

  29. SunithaSunitha says

    Hi Basavaraj,

    I want to do one time investment of Rs 50000 and the term period should be 5 years for my son’s education who is 10 year old. please suggest me good investment plan. I am a house wife and this 50000 is my savings.

  30. BijuBiju says

    Dear Sir,
    I am 38 years old. I need insurance coverage for 25 years. Is it a good idea to deposit a single premium amount of 50000/- ? what may be the sum assured? What may be the amount “I” get after 25 years?


      • BijuBiju says

        Dear Sir,
        Thank you for your prompt reply. I am interested mainly insurance (but great amount). I mean, my nominee should get a good lump sum amount. How much will she get if I deposit 50000/ with 25 years coverage?
        Biju Joseph

        • Basavaraj Tonagatti says

          Biju-If your concern is only insurance then why can’t you buy regular online term insurance than going for one time investment of Rs.50,000? Ideal insurance cover should be 15 times of your yearly income. But I felt you are opinion that how much you get that much is better for you. It is not like that. Insurance companies usually review the requirement on one’s income, health or age. Based on that they will issue.

  31. shashi kapurshashi kapur says

    I am investing Rs. 17000/year in LIC PLAN 815. TERM 30 YEAR .MY AGE NOW 26 YEAR.(LIC 500000).BETTER YA NO.KINDLY REPLY

  32. shashi kapurshashi kapur says

    I am investing Rs. 13000/year in LIC PLAN 814. LONGE TERM 35 YEAR .MY AGE NOW 23 YEAR.(LIC 500000).BETTER YA NO.KINDLY REPLY

  33. rohit rajrohit raj says

    dear sir. i have a new endowrment plan from lic (250000).for twenty years. i want to know what is meturity amount (lumsum).

    thank you

  34. AnupamAnupam says

    I am 28 years old,planning to invest in a retirement plan,i can invest around 25k now monthly
    Which is the best LIC plan now.

  35. lokesh guptalokesh gupta says


    I am investing Rs. 20,000/year in Jeevan Anand from 2005. I know it is not a great product for investing but afraid will loose money if i surrender.

    I have already taken LIC term plan for Rs. 50 Lacs from last year onwards.

    Pls guide if i can surrender or keep investing.


  36. jatin chandrahas pateljatin chandrahas patel says

    Dear Sir,

    I have Invest in LIC yearly Rs32000/- approx in different plan

    1) Jeevan surabhi 15 years yearly premium Rs 13000/- Approx
    2) Jeevan Mitra Tripal Cover Plan Yearly premium Rs 3100/- Approx
    3) jeevan Saral Yearly premium Rs6120/- approx

    and other Bima gold policies

    Please give me advise of return

    • Basavaraj Tonagatti says

      Jatin-All are typical traditional plans. So lower life risk to your potential (ideal insurance cover should be around 15-20 times) and lower returns of around 6%. So what purpose these plans fulfill in your financial life? Think and decide.

  37. KrishnaKrishna says

    suppose SA is 1 Lakh, then Single Premium comes around 47000. My question is, what is the loan amount, which can be taken in the “2nd year”? Is it 90% of the premium paid OR 30% of the surrender value??


  38. gunjangunjan says


    • Basavaraj Tonagatti says

      Gunjan-If this is only investment you want to invest for your kid’s future then use Bank FDs (but interest earned is taxable) or some tax free bonds. Otherwise use PPF (invest Rs.1,00,000 in first year as highest investable limit is only Rs.1,00,000) then from next year onward try to invest remaining amount as well as monthly contributions. But to me including a well diversified mutual fund for such long term goal looks suitable. Think and decide.

  39. VinodVinod says

    If i deposit 50 thousand in single premium for 25 years… Them please tell me what is my lic revived maturity after 25 years,

  40. TejaTeja says

    Good verdict Basu, to ‘stay away’. For me, Life Insurance is only term plans; it is the service fee you pay for insuring your life! You don’t insure your bike/car and expect a return at the end of the year from the premium paid. Same for your health insurance. You don’t go to a cinema and expect the ticket price in full/part to be paid back. Then why’d anyone expect returns from his/her life insurance? For tax saving, or investments, there are multiple other options with decent returns, but not life insurance. This is purely what I feel. Not being judgmental or influence anyone’s decisions.

  41. ArijitaArijita says

    Hi Basavraj,

    Can you please suggest me a good LIC policy with good returns and loan facilities. I am 31 years old female and want to invest 60000/80000 only in LIC.

    One of the agents suggested Endowment Policy and Jeevan Saral.

    Please guide.

    Thanks & Regards,


    • MALAYMALAY says

      Arijita-LIC is not having any Policy like Jeevan Saral as on date. But there is New Endowment Policy which offers moderate return with Life Risk. You may go for Single Premium Endowment Plan for 25 years. Longer the term Higher the return.

  42. ManimekalaiManimekalai says


    I want to invest in insurance in the name of my son who is 11 months old. Also i want to opt for Single premium plan with amount of Rs.15,000/- only. Please Suggest me some good plans.

  43. rizwan says

  44. NitinNitin says


    Please let me know if I am on the right track:
    SA = 3L
    Premium: 64260 *3 (30 yrs of age and 15 yrs term) = 1.9L

    Now there is rebate of 30% of SA = 90K

    So premium = 1.9L – 90K = 1L
    And after 15 yrs = 3L

    So return of 13% pa.

    Pls advice

  45. SabuSabu says

    Min Term is 10 Years. NOT 9 years.
    If a 30yr Old cant wait for 25yrs, he can invest for 10 yrs with Rs.76,281 premium for 1 Lakh SA.

      • Poorvottar Sampark KrantiPoorvottar Sampark Kranti says

        As per my presumption returns on LIC policies depends on how much premium you exactly pay to LIC & for how long duration..based upon that LIC may give you 6-7% return.All other lucrative theories are nothing but customer attraction.
        Now my New Bima Gold Policy where I’m enjoying 2 kind of rebates,
        ->The first one is 2%(Re 694) rebate on yearly premium(Re 34726) which I think LIC offers on all the policies.
        ->Second one is High Sum Assured Rebates..Where I’m enjoying rebate of 7.5 per 1000 SA.So for 1050k SA yearly rebate is a hefty amount(Re 7875).
        As per the table my premium should be Re 43260 but actually my Annual Premium is 35776(34726+1050(Accidental Benefit Rider))
        What I think is that concessions provided on premium payment will have an inversely proportional affect on Final Maturity amt.Also please share me whether LIC provided such hefty concessions in their other policies.

        • Basavaraj Tonagatti says

          Poorvottar-There is no direct relation between high sum assured or yearly payment rebate to return you receive from this plan. Such rebates are same and will be available to all plans. So don’t confuse yourself that only that plan will offer you such rebates. Giving you 2% rebate on yearly premium is the business thinking. Getting Rs.100 now is best option for me instead of getting it for the one year in quarterly mode, as I can invest this Rs.100 immediately somewhere where I can earn more than 2%. So don’t confuse yourself.

  46. VengatVengat says

    Except Service Tax on premium, no major changes in Single Premium Endowment Policy. Unlike popular perception, this product is no customer friendly.

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