This
is answer to the query raised in Post dated 15th September 2013.
There are three methods to ensure that the entire policy moneys go only to the
daughter in a Marriage Endowment policy. They are:
i.
Absolutely
assign the policy to the daughter
ii.
Conditionally
assign the policy to the daughter
iii.
Nominate the
daughter as per guidelines of the insurer
The
procedure prescribed for nomination in a Marriage Endowment policy is different
from nomination procedure in other plans. In other Plans proposed nominee’s
name is to be written in the space provided for that in the proposal form.
In
Marriage Endowment Plan the nomination procedure is as follows:
i.
In answer to the
question ‘what is the object of insurance’ in the proposal form write the words
“see slip” and submit the duly completed addendum (slip) which is given in the
Agents Manual. The wording of the slip is as follows: “This policy has been
taken out by me for the marriage of kum x who is my daughter and is dependant
upon me for the necessaries of life and shall be considered as a policy
earmarked for her marriage”. This slip shall be submitted along with the
proposal under the signature of the proposer
ii.
Alternatively,
the proposer may write after the name of the nominee in the proposal form the
following words, viz.” Kum X, being the daughter who is dependant upon me for
the necessaries of life and for whose marriage this policy has been earmarked”.
iii.
When (i) or (ii)
is done the life insurance company places the following endorsement on the
policy, “This policy has been earmarked by the assured for the marriage of his
daughter kum x and is dependant upon the assured for the necessaries of life”.
Only when this endorsement is available on the policy bond the policy moneys go
to the daughter fully. Otherwise policy moneys belong to all legal heirs.
iv.
If you have not
given the addendum earlier while purchasing the policy do it now and submit it
to the life insurance office and get the policy endorsed with facts in your
addendum.
Key words:
Marriage Endowment Policy
Absolute assignment
Conditional assignment
Nomination
Sir, I have a doubt in this regard.
ReplyDelete1. If the policy is taken with DAB and if the life assured dies in an accident during the minority of the daughter, to whom the DAB is payable? to the legal heirs of the deceased life assured or to the legal guardian of the daughter?
2. If the life assured dies and the date of maturity (date on which the amount is payable) falls during the minority of the daughter to whom the amount is payable? -to the legal heirs of the deceased life assured or to the legal guardian of the daughter.
Govindan Kutty
R/Sir, Situation 1. Policy absolutely assigned to daughter. LA dies in accident..Benefit goes to guardian of daughter. Situation 2. Policy conditionally assigned. LA dies in accident. Benefit goes to guardian of daughter.Situation 3.LA is disabled in accident and there is no assignment. Benefit goes to LA. Situation 4. LA dies in accident and there is no assignment. Benefit goes to guardian of daughter. Situation 5. This policy is always advised to be given for a term so that at the maturity date daughter is major. Kindly note that though usually age of majority is 18, if a guardian is appointed for the child by a court such child will be treated as major only at 21 years. Sadly many people do not consider these things at the time of sale. If policy matures during minority of daughter benefit goes to guardian of daughter. Regards...vns pillai
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