Endowment Assurance is a type of life insurance policy that provides both a guaranteed cash provision and death benefit. It is designed to offer financial security and savings over a specified period. Here are some key features and details of Endowment Assurance:
Minimum Entry Age: 10 years
Maximum Entry Age: 65 years
Maximum Age at Maturity: 75 years
Supplementary covers or riders can be attached to the Endowment Assurance policy to enhance its coverage. The specific riders available may vary depending on the insurance provider.
Endowment Assurance offers a guaranteed cash payout either at a specified time or in the event of the policyholder's death (referred to as the "death benefit"). The sum insured plus any bonuses that may have accrued are payable according to the policy terms.
Premiums for this type of policy are payable for a specified number of years or until the death of the insured, whichever comes first. The policyholder commits to making regular premium payments to keep the policy in force.
The policy acquires a surrender value after being in force for at least two consecutive years, provided that no premiums have been in default. The surrender value is the amount that the policyholder can receive if they choose to surrender or cancel the policy before its maturity date. The specific surrender value will be provided by the insurance company upon the policyholder's request.
Endowment Assurance policies can be used to meet various financial needs of the insured and their family. This includes providing financial support for retirement, funding the education of children, or offering capital for business purposes. The policy's guaranteed cash provision can serve as a source of funds to meet these goals.
Insurance companies typically offer tools or calculators to help individuals estimate the premium they would pay for an Endowment Assurance policy. Premiums are calculated based on factors such as the insured's age, sum insured, and the chosen policy term.
In summary, Endowment Assurance is a versatile life insurance policy that combines guaranteed cash provision with the potential for bonuses, providing financial security and flexibility. It can be a suitable choice for individuals looking to secure their financial future, provide for their loved ones, and have access to funds at a specified time or in case of untimely death.
Death claim is usually payable to the nominee/ assignee or the legal successor, as the case may be. However, if the deceased policyholder has not nominated/ assigned the policy or not made a will, the claim is payable to the holder of a succession certificate or such evidence of title from a Court of Law.
State Life distributes its profits among it policyholders every year in the form of bonuses. Bonuses are credited to the account of the policyholders and paid at the time of maturity or at the time of death (if earlier) . Bonus is declared as a certain amount per thousand of sum assured.
Life insurance is normally offered after a medical examination of the life to be insured. However, to facilitate greater spread of insurance and also as a measure of relaxation, State Life has been extending insurance cover without any medical examination, subject to certain conditions. This facility is called Non-medical Scheme.
Underwriting of a risk involves consideration of material facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium.
The amount payable by State Life on termination of the policy contract at the desire of the policyholder before the expiry of policy term is known as the surrender value of the policy.
It is not possible to raise money against your life insurance policy. However, there is a provision available by way of assignment or mortgaging the policy provided the policy has been in force for a minimum stipulated period.
The calculation of life insurance premiums is primarily based on age of the person to be insured, sum insured and term of the policy.
The policyholder has to apply for loan in a prescribed form and submit the policy document with the form duly completed.
A policyholder can repay the loan amount either in part or in full anytime during the term of the policy.
If the policy has acquired a surrender value and a premium has remained unpaid beyond the grace period, the policyholder will entitled to benefits under one of the following two options given hereinafter, depending on the option exercised (if any) in his Proposal for this policy:
A – Automatic paid-up Option
This policy will be converted into a paid-up policy. The paid-up Sum Insured will be specially calculated to allow for the clearance of all outstanding dues of State Life against the policy.
B – Automatic Premium Loan Option
So long as the net surrender value of the policy equals or exceeds any due premium remaining unpaid beyond its grace period, State Life will continue to keep this policy in full force, and treat the said premium as paid by creating an automatic premium loan against the net surrender value of the policy.
