The Optional Maturity Endowment is an endowment assurance plan with a unique feature that allows policyholders to have flexibility in determining when and how the policy matures. This plan is available for individuals aged 20 to 45 years. Here are the key features and options regarding the maturity of this plan:
Eligibility:
The plan is available for individuals aged 20 to 45 years.
The policyholder has several options regarding the maturity of this plan:
After the policy has been in force for 20 years or more, the policyholder can choose to mature the policy early for a proportionately reduced sum insured. This option provides flexibility in accessing the policy's benefits ahead of the originally selected term.
After the policy has been in force for 20 years or more, the policyholder, based on their financial needs, can choose to mature the policy in parts. This means that they can receive a portion of the policy's benefits before the original maturity date while keeping the policy in force for the remaining sum insured.
If the policyholder prefers to let the policy mature at the originally selected term, they will receive the sum insured as well as an additional bonus. This option provides an opportunity to maximize the policy's benefits at the end of the chosen term.
The policy participates in bonuses declared by State Life from time to time. Bonuses are typically added to the policy's accumulated value and contribute to the overall benefits received.
Policyholders can enhance the coverage under the policy by attaching supplementary covers or riders. These supplementary covers can provide additional benefits or protection based on the policyholder's needs.
Insurance companies typically offer tools or calculators to help individuals estimate the premium they would pay for the Optional Maturity Endowment plan. Premiums are determined based on factors such as the age of the policyholder and the chosen policy term.
In summary, the Optional Maturity Endowment plan offers policyholders the flexibility to decide how and when the policy matures. They can choose to mature the policy early, receive benefits in parts, or allow it to mature at the originally selected term with an additional bonus. The plan also offers participation in bonuses, the option to add supplementary covers, and the ability to customize the policy to suit individual needs and financial goals.
Death claim is usually payable to the nominee/ assignee or the legal successor, as the case may be. However, if the deceased policyholder has not nominated/ assigned the policy or not made a will, the claim is payable to the holder of a succession certificate or such evidence of title from a Court of Law.
State Life distributes its profits among it policyholders every year in the form of bonuses. Bonuses are credited to the account of the policyholders and paid at the time of maturity or at the time of death (if earlier). Bonus is declared as a certain amount per thousand of sum assured.
Life insurance is normally offered after a medical examination of the life to be insured. However, to facilitate greater spread of insurance and also as a measure of relaxation, State Life has been extending insurance cover without any medical examination, subject to certain conditions. This facility is called Non-medical Scheme.
Underwriting of a risk involves consideration of material facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium.
The amount payable by State Life on termination of the policy contract at the desire of the policyholder before the expiry of policy term is known as the surrender value of the policy.
It is not possible to raise money against your life insurance policy. However, there is a provision available by way of assignment or mortgaging the policy provided the policy has been in force for a minimum stipulated period.
The calculation of life insurance premiums is primarily based on age of the person to be insured, sum insured and term of the policy.
The policyholder has to apply for loan in a prescribed form and submit the policy document with the form duly completed.
A policyholder can repay the loan amount either in part or in full anytime during the term of the policy.
If the policy has acquired a surrender value and a premium has remained unpaid beyond the grace period, the policyholder will entitled to benefits under one of the following two options given hereinafter, depending on the option exercised (if any) in his Proposal for this policy:
A – Automatic paid-up Option
This policy will be converted into a paid-up policy. The paid-up Sum Insured will be specially calculated to allow for the clearance of all outstanding dues of State Life against the policy.
B – Automatic Premium Loan Option
So long as the net surrender value of the policy equals or exceeds any due premium remaining unpaid beyond its grace period, State Life will continue to keep this policy in full force, and treat the said premium as paid by creating an automatic premium loan against the net surrender value of the policy.
