Page 12 - LIFE INSURANCE TODAY Novemver 2017

Endowment Assurance: 15 years (40% and the accrued bonus). For the 20 years
term policy, the benefits are paid after 8 years (20%), 12
Under this scheme, the proponent is given an assurance
years (20%), 16 years (20%) and 20 years (40% and the
to the extent of the Sum Assured and accrued bonus till
accrued bonus). Such payments will not be taken into con-
he/she attains the pre-determined age of maturity. In case sideration in the event of unexpected death of the insur-
of unexpected death of the insurant, the assignee, nomi-
ant and the full sum assured with accrued bonus is pay-
nee or the legal heir is paid the full Sum Assured together
able to the assignee or legal heir.
with the accrued bonus.

Joint Life Assurrance:
The minimum age at entry is 19 years and the maximum
Age at entry is 55 years. The minimum Sum Assured is Rs It is a joint-life Endowment Assurance in which one of the
20,000 and the maximum Sum Assured is Rs 50 lacs. Loan spouses should be eligible for PLI policies. Life insurance
facility is available and policy can also be surrendered af- coverage is provided to both the spouses to the extent of
ter completion of three years. The policy is not eligible for sum assured with accrued bonus with only one premium.
bonus if surrendered or assigned for loan before comple- All other features are same as an Endowment policy.
tion of 5 years. Proportionate bonus on the reduced sum
assured is accrued if the policy is surrendered or assigned All the above schemes have compulsory medical examina-
for loan. tion. For the non-medical policy of any category (except
AEA and Joint Life Assurance for which Medical Examina-
Convertible whole Life Assurance: tion is compulsory), the maximum Sum Assured is Rs 1 lac.
The features of this scheme are more or less same as En-
dowment assurance. Policy can be converted into Endow- Limits of Sum Assured in Postal Life In-
ment Assurance after five years. Age on the date of con- surance:
version must not exceed 55 years. If option for conversion Any person who is eligible to the benefit of Post Office Life
is not exercised within 6 years, the policy will be treated
Insurance Fund under Rule 6, may effect an insurance-
as Whole Life Assurance. Loan facility is available. The
Whole Life Assurance, Endowment Assurance, Convertible
policy can also be surrendered after completion of three Whole Assurance, Anticipated Endowment Assurance and
years. Yugal Suraksha Policy or all of them on his life for a sum
not less than Rs. 20,000 in each class but not more than
The policy is not eligible for bonus if surrendered or as- an aggregate of Rs. Fifty Lac (Rs. 50,00,000/-) in respect
signed for loan before completion of 5 years. Proportion- of one class/all classes of insurance policy (s) taken to-
ate bonus on the reduced sum assured is accrued if the
gether. The value of policy shall be taken in multiples of
policy is surrendered or assigned for loan. The policy is not Rs. 10,000/- after minimum limit of Rs.20,000/- i.e. Rs.
eligible for bonus if surrendered or assigned for loan be- 20,000/-, Rs.30,000/-,Rs. 50,000/- and so on.
fore completion of 5 years. Proportionate bonus on the
reduced sum assured is accrued if the policy is surrendered Children Policy
or assigned for loan.
The Department has introduced Children Policy under PLI/

Anticipated Endowment Assurance: RPLI, with effect form 20th Jan 2006. The salient features
of this scheme are as under:-
It is a Money Back Policy with maximum Sum Assured of
Y The Scheme is envisaged to provide Insurance cover
Rs 50 lacs. Best suited to those who need periodical re-
to the children of PLI/RPLI policy holders.
turns. Survival benefit is paid to the insurant periodically.
Y Maximum two children in family will be eligible to take
Two types of policies are available - 15 years term and 20
children policy.
years term. For the 15 years term policy, the benefits are
paid after 6 years (20%), 9 years (20%), 12 years (20%) and Y Children between the age of 5 and 20 years are eli-

I am patient with stupidity but not with those who are proud of it.

12 November 2017 Life Insurance Today

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