This Plan belongs to the category of conventional insurance
product – endowment assurance Plans. It answers a specific financial
need that arises at a particular fixed time in the life of the life assured.
Expenses for marriage / education do not come too earlier than expected.
Assuming that a person purchases this Plan for the benefit of his son /
daughter aged one year for a term of 17 years the policy will mature when the
son / daughter will be of 18 years of age. Marriage or college education will
come after this age only. So premiums are payable for 17 years or till death of
the life assured, if earlier.
Maturity benefit is payable to the policyholder. Death
benefit is payable to the legal heirs. In case of daughter’s marriage the death
benefit is payable in one lump sum. In case of education benefits are payable
in ten half yearly installments.
In case of the earlier death of the life assured no further
premiums need be paid. However bonus will be paid for all the years till
maturity.
One specialty of this policy is that even in case of death
of the life assured the insurance company pays maturity claim (and not death
claim) on date of maturity. Conditions and privileges of the policy may be read
from the Posts under the label ‘Policy’.
Key words:
Conventional insurance product
Marriage endowment Plan
Educational annuity Plan
Maturity claim
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