LIC Marriage Endowment / Educational Annuity Plan provides benefits on selected maturity date. This plan can be taken to ensure that you have enough cash flow for meeting the expenses of your child's education or marriage.
Eligibility Conditions of LIC Marriage Endowment / Educational Annuity Plan
|Entry Age||Minimum - 18 years Maximum - 60 years|
|Maturity||Minimum - 0 years Maximum - 70 years|
|Policy Term||Minimum - 5 years Maximum - 25 years|
Key Features of LIC Marriage Endowment / Educational Annuity Plan
|Type||An Endowment Assurance Plan.|
|Sum assured||Minimum - Rs.50,000 Maximum - No limit|
|Premium paying term||Equal to the policy term.|
|Premium paying frequency||Quarterly, half-yearly, yearly, monthly or salary deductions.|
|Premium paying method||Monthly premium payment must be transmitted through ECS or direct debit.|
|Bonuses||Simple reversionary bonus is declared at the end of each financial year. Additional bonus and vested bonuses are payable, if any.|
|Surrender Value||The policy can be surrendered after 3 years premium has been paid. Special surrender value will be paid depending on the duration for which the premiums have been paid and the policy duration at the time of surrender.|
|Loan||Loan facility is not available.|
|Grace period||30 days grace period is allowed for paying the premium.|
|Free look period / Cooling off period||The plan has a 15 days free look within which you can return the policy.|
|Tax benefits||Prevailing tax benefits are applicable.|
|Nomination||You can appoint a nominee.|
Advantages of LIC Marriage Endowment / Educational Annuity Plan
- On maturity, maturity benefits are paid to the policyholder.
- If the insured dies during the policy term, death benefit is offered to the nominee.
- Tax benefits can be availed.
- The policy can be surrendered after completing 3 policy years.
How the Plan Works
Miss Reena took LIC Marriage Endowment or Educational Annuity Plan when she was 35 years old. The policy term she opted for was 25 years and premium payment term she chose was 25 years. The sum assured that she opted for was Rs.1 lakh. She chose to pay the premium annually. She will have to pay Rs.3,727 annually towards the premium payment. She will get survival benefit and if she dies during the term, the death benefit will be offered and the premium will be waived off.
By the end of 25 years, she would've paid Rs.93,175, but she will get guaranteed benefit of Rs.1 lakh. Non-guaranteed benefit at 6% is Rs.69,500 and at 10% is Rs.1,82,500. Therefore at the end of the policy term, if the non-guaranteed benefit is offered at 6% she will get Rs.1, 69,500 and if it is 10% she will get Rs.2,82,500.
The premium can be paid yearly, half-yearly, quarterly or monthly or through salary deductions. The monthly payments are to be made through ECS or Direct Debit.
There are no riders available with this policy.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017