It is a perfect blend of endowment assurance as well as whole life plans. That is one gets a twin benefit of financial protection against death as well as provision of lump sum payment at the end of the specified term in case of survival of policy holder.
The policy can be taken from age 18 years to 50 years with age of policyholder on policy maturity age not exceeding 75 years.
The policyholder can choose policy term from minimum 15 years to maximum of 35 years. The minimum sum assured is Rs 1 lakh and in multiples of Rs 5,000.The policy matures at the end of the chosen policy term and the surviving policyholder will get Basic Sum Assured along with Vested Simple Reversionary Bonus and Final Additional Bonus.
The sum assured on death during the term of the policy will be higher of 125 per cent of Basic Sum Assured or 10 times of annualised premium.
It is an interesting insurance-cum-investment plan that gives payment of the sum assured on survival of the term as well as to policy holder’s nominee in case of death.
Endowment assurance plans means that assured needs to pay yearly premium which is calculated basis age of policy holder at the time of entry and the term of the policy. The sum assured would become payable under two circumstances either after a specified number of years or on the demise of policy holder whichever occurs first.
On the other hand in whole life plans Premiums are paid throughout the life time of life assured . This can be with profits or without profits ( A “with profit” policy is eligible for various bonuses declared by company every year, while a “without profits” policy does not have this feature )