A query

Let this Post be a query that pertains to the Marriage endowment Policy of the Life Insurance Corporation of India. Many of you are selling this policy to parents of daughters promising them that the insurance company will pay the maturity amount of the policy (in case of death of the life assured during the term) to the daughter for her marriage.

                   

Please guide the policyholder in view of the following, which I am sure many of you have not considered at all, while giving the advice at the time of selling the policy:

(i)            Even in case of death claim the insurer pays maturity claim in this policy. You will agree    with me that maturity claim cannot be paid to nominee.

(ii)          Death claim does not belong to the nominee. It belongs to all the legal heirs of the life  assured. So the daughter (who is nominee) will get only a share of the claim in her    capacity as one among the many legal heirs. She is not eligible to get the entire claim.

In view of the above, what is the proper advice so that the entire claim amount goes to the daughter? You can send me your advice. Or you can look forward to my next Post for ‘Agents’.