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The Endowment Assurance Policy With Profit


The Endowment Assurance Policy With Profit



Table No. 14


This is a fixed term policy. The premium has to be paid till the end of the term or till the death of the policy holder whichever is earlier. In case the policy holder dies before the end of the policy term, the sum assured plus the accumulated bonus  is paid to the nominee. If the policy holder survives till the end of the term, he gets sum assured plus bonus.

The endowment policy fulfils many of the long term financial needs of a person. The short term needs may be, to provide for family expenses ( this is possible by raising a loan on policy after the policy has run for 3 years). The long term needs may be, to provide for education of dependent children, their marriage, or for old age provision for self or spouse.  This is the most popular  form of life assurance since it not only makes provision for the family  of the life assured in the event of his early death, but also assures a lump sum at any desired .
If payment to the premiums ceases after at least three years premium have been paid, a free paid-up policy for an amount bearing the same proportion to the sum assured as the number of premiums actually paid  bears to the number stipulated for in the policy, will be automatically secured provided the reduced sum assured,  exclusive of any attached bonus, is not less than Rs. 250

Benefits

Ø  Maturity Benefits:
o   Sum Assured  + Bonus

Ø  Death Benefits:
o   Sum Assured  + Accumulated Bonus.

Ø  Mode Benefit:
o   The following table shows the rebate available on the mode of premium payment.

Mode
Rebate
Yearly
3% of tabular premium
Half - Yearly
1.5% of tabular premium
Quarterly
Nil


Ø  Sum Assured Benefit:

The following table shows the rebate available on the sum assured.

Sum Assured
Rebate
Up To Rs. 50,000
Nil
Rs. 50,001 To Rs. 1,00,000
Re. 1 Per Thousand
Rs. 1,00,001 And Above
Re. 2 Per Thousand


Features
         
Ø  Minimum Sum Assured - Rs. 50,000/-

Ø  No Maximum Limit

Ø  Minimum age at entry - 12 years

Ø  Maximum age at entry - 65 years

Ø  Maximum age at maturity -75 years

Ø  Minimum Term - 5 years

Ø  Maximum Term - 55 years

Ø  Modes Allowed - All

Ø  Policy Loan available

Ø  Age Proof  Compulsory    

Ø  No medical examination is required if the conditions applicable  under Non Medical  Schemes are  satisfied.