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The Marriage Endowment Plan from the Life Insurance Corporation of India (LIC) is an endowment insurance policy that allows parents, by way of the payouts provided on the maturity date, to meet the financial needs of their children. This is a “with-profit” policy, thus the life assured is also eligible to receive bonuses that are declared by the company.
Premiums to be paid will vary on the basis of the policy tenure chosen, sum assured opted for, riders purchased, the policyholder’s age at entry, etc. Add-on covers are available, and can be purchased by the policy buyer for an additional premium. Tax benefits, as per the provisions of the prevailing tax laws, can also be claimed by the life assured/nominee.
The sum assured is a guaranteed amount of money that is payable to the policyholder/nominee, by the insurance provider. The sum assured will have to be mutually agreed upon by the policy buyer and the insurer. Thus, at the time of opting for the sum assured, one must consider the plan parameters and his/her own financial requirements.
The premium what is paid by the policyholder/buyer to the insurer in order to be able to enjoy the protection offered by the policy.
|Premium Payment Mode||
*Premiums vary based on age, location, plan term, and other factors.
|Death Benefit||As per the policy tenure, the entire sum assured amount and all accrued bonuses will be paid at maturity of the policy, even if the life assured passes away during the policy tenure. Further, the nominee can opt for a lump sum payout or for the due death benefit to be paid as 10 bi-yearly instalment.|
|Maturity Benefit||The policyholder can opt to receive the maturity benefit as a one-time payout or in the form of 10 equal half-yearly instalments. The total maturity benefit payable will be a sum that amounts to the sum assured and all bonuses declared by the life insurance firm.|
The insurer offers certain add-ons which can provide certain supplementary benefits. These optional riders can be purchased for an additional amount of money, which is payable over and above the premium rate of the base policy.
|Surrender Value||Policies that have been active for 3 years and above can be surrendered by the policyholder. The insurer will then have to pay the policyholder the higher of the Guaranteed Surrender Value or the Special Surrender Value. The Guaranteed Surrender Value payable will be equal to the 30% of the premiums paid minus the first policy year’s premium.|
|Bonuses||The insurer declares a Simple Reversionary Bonus each fiscal year, per thousand of the sum assured amount. This accrued benefit is added to the final payout. The insurer may also pay a Final Additional Bonus, provided the policy has been in-force for a certain period of time.|
Policyholders are eligible to claim tax rebates every financial year up to the pre-defined limits, for premiums paid. Similarly, the benefit payouts received are also tax-free. Tax benefits can be availed under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
The Marriage Endowment Plan from LIC is an insurance policy that in addition to providing a risk cover also helps customers meet the financial requirements of their children, as they age. The policy also offers flexibility in terms of the benefit payout. Thus, one can opt to receive the benefit as a one-time amount or in instalments, thereby serving as a fixed source of income.
The insurer, Life Insurance Corporation of India (LIC), is one of the most popular life insurance firms in the country. The insurer has reported a high claim settlement ratio and grievances solved ratio over the past few fiscal years. For FY16-17, the insurer has a claim settlement ratio and grievances solved ratio of 98.31% and 100%, respectively. The insurer has also received a number of awards, which serves as a testament to the insurer’s efficiency.
Note: This policy has been withdrawn by LIC.
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