In an age when there was little packaging of insurance products, Table 14, LIC's endowment plan was the bestseller product. Let us look at India's grand old policy and a good bet even now.
Th endowment plan does not only makes provisions for the family of the Life Assured in event of his early death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide an annuity during the remainder of his life or in any other way considered suitable at that time.
The amount assured if not paid by reason of his death earlier will payable at the end of the endowment term where it can be invested in an annuity provision for the rest of the policyholder's life or in any other way he may think most suitable at that time.
Suitable For:
Being an endowment assurance policy, this plan is for those who don't believe in term insurance where you get money only when you die. (We strongly recommend term insurance and separating insurance with investment)
Premium for a 30 year male, for 30 year term payable annually is Rs 32,368/- for a Rs 10 lakh cover. You can calculate your premium here
Bonus:
Is there anything extra payable besides the sum assured at the time of claim settlement? Yes, but only if it is a ?with profits? policy. Every year the Life Insurance Corporation distributes its surplus among policyholder to ?with profits? polices in the form of bonuses. Substantial bonuses have been declared in the past after each valuation of policy liabilities.
Disability Benefit:
In case policy holder becomes totally and permanently disabled due to an accident before reaching the age of 70 and the policy is in full force, he will not be required to pay further premiums, (the Disability Benefit is available in respect of the first Rs.20,000 sum assured on any one life) and the policy will continue to be in force.?
Accident Benefit:
By paying a small extra premium of Rs.1 per Rs.1000/- sum assured per year he or his family are entitled to the following benefits on death or permanent disability caused by accident. Even students above the age of 18 years can avail of this benefit.
Premium Stoppage:
If payment of premiums ceases after at least THREE years' premiums have been paid , a free paid-up policy for a reduced sum assured will be automatically secured provided the reduced sum assured, exclusive of any attached bonus, is not less than Rs. 250/-. The reduced sum assured will become payable on the event as stipulated in the policy.
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