LIC Whole Life Policy - Single Payment

The Whole Life Policy – Single Payment Plan No. 08 is a type of permanent life insurance policy offered by LIC that requires only one single lump-sum payment at the time of purchase. This plan provides lifelong coverage with benefits payable to the nominee upon the death of the policyholder, along with a maturity benefit at the end of the policy term.

Introduction to The Whole Life Policy – Single Payment Plan 08

The Whole Life Policy – Single Payment Plan 08 is designed to provide the dual benefit of financial protection and savings through a one-time premium payment. Unlike regular whole life policies which require continuous premium payments, this plan simplifies the process by allowing policyholders to make a single payment upfront, after which the coverage remains active for life.

Key Features of the Single Payment Plan 08

• Single Lump-sum Payment: The premium is paid just once at the start of the policy.
• Lifelong Coverage: The policy remains active for the lifetime of the insured, as long as the single premium payment is made.
• Death Benefit: The nominee receives a guaranteed sum assured plus applicable bonuses on the death of the policyholder.
• Maturity Benefit: On survival till the maturity age (generally 100 years or a pre-defined age), the policyholder receives the sum assured along with bonuses.
• Bonus Facility: The policy participates in the corporation’s profits and is eligible for bonuses declared annually, enhancing the overall benefit.
• Low Risk: Being a government-backed LIC plan, it assures guaranteed returns with minimal risk.
• Tax Benefits: Premiums paid and benefits received under this plan are eligible for tax benefits under prevailing sections of the Income Tax Act.

Launch Date and Withdrawal Details

• The Whole Life Policy – Single Payment Plan 08 was officially launched in January 2024 by LIC.
• According to LIC’s official updates, this plan was withdrawn from sale as of September 2025. However, existing policyholders can continue to enjoy benefits as per the original terms.
• Withdrawn policies such as this no longer accept new enrollments but honor all existing contracts until their natural maturity or claim events.

How the Single Payment Plan 08 Calculator Works

Using the Single Payment Plan 08 calculator helps potential buyers estimate the benefits and premiums related to this policy with ease. Here’s how the calculator typically functions:

1. Input Age and Sum Assured: The user inputs their age and the desired sum assured amount.
2. Instant Premium Calculation: Based on the inputs, the calculator estimates the single premium amount payable upfront.
3. Projected Benefits: It shows the expected maturity amount, death benefit, and bonus projections over the lifetime.
4. Tax Benefits and Other Benefits: Some calculators also estimate tax savings and other features linked to the plan.

This tool is valuable for users to understand their financial commitment and how much their beneficiaries could potentially receive. It brings transparency and helps in decision-making.

Advantages of The Whole Life Policy – Single Payment Plan 08

• No Premium Payment Hassles: One payment covers the entire lifetime, eliminating repeated premium payment burden.
• Guaranteed Security: Offers financial protection for family through guaranteed death benefits.
• Savings and Returns: Combines insurance with a saving mechanism, as bonuses accumulate and increase the value of benefits.
• Loan Facility: Policyholders can avail loans against the policy’s surrender value during the policy term.
• Tax Efficiency: Premium paid qualifies for deductions under Section 80C; maturity proceeds are generally tax-free under Section 10(10D) as per Indian Income Tax laws.
• Simple and Transparent: Clear benefits with no hidden charges and fixed sum assured.

Who Should Consider This Plan?

• Individuals who prefer making a one-time payment rather than managing yearly premiums.
• Those who want a guaranteed lifelong financial security for their dependents.
• People looking for an investment option with low risk and stable returns.
• Seniors who want to plan their estate and legacy with minimal ongoing financial management.
• Customers needing a tax-saving instrument with assured returns.

Important Considerations

• High Initial Cost: Since the premium is payable in a lump sum, it may not be affordable for everyone.
• Surrender Value: Exercising surrender may lead to penalties if done before maturity; thus, liquidity is limited.
• Limited Flexibility: No additional premiums can be paid once the single payment is made.
• Tax Implications: Withdrawals or loans against the policy may carry tax consequences; always consult a tax advisor.
• Withdrawal from Sale: Being a withdrawn plan, new policies are no longer issued, but existing policies are still honored.

Frequently Asked Questions

Conclusion

The Whole Life Policy – Single Payment Plan 08 is a unique LIC insurance product characterized by its simplicity—one premium payment secures lifelong coverage. It balances the dual objectives of protection and savings, making it suitable for those seeking hassle-free insurance and financial stability for their loved ones.

Though the plan has been withdrawn for new policies, its benefits continue for existing policyholders, making it a reliable financial tool to plan long-term security and legacy. Prospective buyers should carefully use the available calculators to understand premium commitments and expected benefits before investing in such a plan.