Triple Benefit Insurance Policy

This policy is combination of a whole life limited payment and a pure endowment (without return of premium) with a guaranteed annual bonus / valued units payable on death during the endowment term. This policy is granted for a fixed terms of 15, 20 and 25 years. Premiums are payable throughout the term or till prior death of the life assured.

The special feature of this plan is that there is a guaranteed and steadily increasing family provision during the selected period along with the old age benefit. The provision for the family does not terminate when the old age benefit is paid at the end of the period and no further premiums are payable thereafter; but a sum equal to the original sum assured still remains to be paid on the death of the life assured thereafter.

The following benefits are guaranteed provided the policy remains in force for the original sum assured.

If death occurs within the stipulated period:

The benefits payable to the dependents, in this case are:

(I)            The basic sum assured

(II)            A guaranteed bonus / valued units per-annum for each full year’s premium paid excluding the first year’s premium.

This is non-participating plan where under the sum assured increases by fixed amounts during the term. The amount of guaranteed bonus / unit values is fixed and does not defend on the profits of the insurance company.

On survival to the Selected Term:

The following amounts are paid at the survival of the life insured at the selected term:

(I)            The basic sum assured in cash

(II)            Actually paid-up whole life assurance for a like amount payable at death thereafter.

However, the life assured is given the following options in lieu of these two benefits:

An increased cash payment

OR

Fully ‘paid-up whole life insurance policy for increased sum assured.

The alternative benefit of an increased paid-up assurance will be allowed without medical examination subject to the exercise of this option not less than three years before expiry of the selected term. Paid-up values are also given in this case. The benefits available under the policy on maturity will also be reduced in the same proportion. The policy so reduced will thereafter by free from all liability for payments of premiums but shall lose all rights to the guaranteed additions assured in the event of death subsequent to the date of conversion into a reduced paid-up value. Guaranteed surrender value is applicable to this policy.

This plan is useful to a person who, in addition to providing cover for his family, wants to make some provision for his old age. It overcomes the main drawback of the whole life insurance policy, i.e, the assured is permitted to get the policy amount. The other advantage is that the insurance element is greater than an ordinary endowment assurance policy.