The Education Annuity Plan is an endowment assurance plan that offers benefits starting from the date of maturity so as to help manage marriage or educational expenditures of one’s child. It is a with-profit plan that participates in the profits of the insurance company. The profits are shared with the policyholder in the form of bonuses.
The insurance company generally lays out certain eligibility criteria that need to be met in order to purchase a policy. In most cases, the minimum and maximum age at entry are specified. The policyholder should check such details in the policy and ascertain if he/she is eligible for the policy.
The sum assured is the total amount paid to the beneficiaries on the death of the policyholder. Prospective policyholders should choose plans with adequate sum assured so that his/her family members can manage their expenses when he/she is not around to support them.
The premium is the periodic amount paid by the policyholder to the insurance company.
|Mode of payment||
*Premiums vary based on age, location, plan term and other factors
|Death Benefit||On the death of the policyholder, the sum assured along with all bonuses are provided to the beneficiaries of the policyholder. The bonuses are calculated up to the maturity date, regardless of whether the death of the policyholder occurred during the policy term or after. The beneficiaries may choose to receive the amount as a lump sum or as ten half-yearly instalments.|
|Maturity Benefit||On reaching the date of maturity of the policy, the sum assured along with all the bonuses are provided to the policyholder. The policyholder can choose if he/she wants it as a lump sum or in ten half-yearly instalments.|
|Supplementary Benefits||Extra benefits can be added to the basic plan of the life insurance. An additional premium will have to be paid for such benefits.|
|Simple Reversionary Bonus||A certain sum, per thousand of the sum assured, is declared at the end of every financial year. The declared amount then becomes a guaranteed benefit of the plan.|
|Final Bonus||A final bonus is payable by the insurance company if a minimum term specified is completed.|
|Premium Payment Channels||Customers can choose from the many offline and online payment modes available like ATM, Bill Pay, the LIC website, authorised banks, etc.|
|Range of Policies||LIC has micro insurance plans, unit plans, pension plans, health plans and many other unique plans to choose from.|
The insured individuals can avail tax benefits under Section 80C of the Income Tax Act, 1961.
The mission of LIC is to enhance the quality of life of the people by providing the much needed financial security at affordable prices. The insurance company, which is one of the most preferred in the country, has a claim settlement ratio of 98.31% (2016-17) and grievances solved ratio of 100% (2016-17).
Note: This plan has been withdrawn by LIC.