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Short Term Endowment Life Insurance

Introduction

Short term endowment life policy gives saving benefit, return on premium, tax exemption and protection against the financial loss incurred by the death or permanent disability of the person insured.

Purpose

  • To provide financial support in the case of unexpected tragedies.
  • To ensure that the certain amount of money are saved in the desired term

Advantages of short term endowment

  • Build a good saving habit.
  • Financial support for the family in unexpected tragedy.
  • Total Benefit/Maturity Benefit amount exceeds the premium paid.
  • Personal Income Tax saving.
  • No tax shall be assessed on insurance indemnity or maturity benefit.
  • No warrant from debtors is allowed to issue upon policy benefits.
Age limitation10 years to 60 years (If the insured person is within 10 -18 years, the approval letter from their guardian will be needed.)
Insured Period5 years (or) 7 years (or) 10 years
Total Sum Insured 10 lakhs to 500 lakhs
Premium RatePremium payment rate will be calculated based on the coverage and age of the insured person.
Premium PaymentPremium payment can be made monthly, quarterly, bi-annually, annually as per insured person’s preference.
BeneficiaryThe benefit can be transferrable to the individual or group proportionally with desired percentage.

Policy Benefits

  • Maturity Benefit
  • Death Benefit
  • Total Permanent Disability Benefit

Exclusions

The policy does not provide Death Benefit due to the following causes and only premium paid will be returned.

  1. The occurrences of suicide within one year from policy start date.
  2. Death cases happened within one year from the policy starting date and are caused by the existing diseases that are not disclosed intentionally by the policy holder.

The policy does not provide Total Permanent Disability Benefit due to the following causes and only premium paid will be returned.

  1. Total Permanent Disability caused intentionally by self-injury
  2. Total Permanent Disability caused by suicide
  3. Total Permanent Disability caused by abuse of drugs
  4. Total Permanent Disability caused by taking dangerous and risky medicine
  5. Total Permanent Disability caused by the criminal commitment
  6. Total Permanent Disability cases happened within one year from the policy starting date and are caused by the existing diseases that are not disclosed intentionally by the policy holder.