LIC International Participating Marriage-Education Plan Review

LIC International Participating Marriage/Education Endowment Plan Review

LIC International participating marriage/education is the Endowment life insurance policy. It has following key features.

• Payment on maturity date is certain irrespective of survival or death of policy holder.
• Waiver of future premium in case of death during the term.
• Sum assured plus vested bonus is payable to the life assured if he/she survives the selected term.
• On death of the policy holder during the term one basic sum assured is paid immediately to the beneficiary and  another basic Sum Assured is paid on maturity.
• Bonus is payable on the date of maturity for the entire term irrespective of the policy holder survives the term or not.
• Premium payment ceases on death or on expiry of term whichever is earlier
• Accident benefit is available with this plan

Under this plan, at the end of the plan term, the life assured gets the sum assured together with vested bonuses, which is payable in lump sum or in ten half-yearly installments, as chosen by the life assured.
In the event of unfortunate death of the life assured before the date of maturity, the benefits under the policy will be immediate payment of an amount equal to the sum assured, waiver of all future premiums, and payment of the sum assured and vested bonuses on the date of maturity in lump sum or in ten half-yearly installments as chosen by the beneficiary.

My Opinion

Well, LIC has not mentioned clearly in its brochure that how much premium allocation charge and various other kind of charges it will charge from you. There is also not mentioned that how they will generate money from your premiums i.e. via stocks investing or via bonds investing.

And that’s why this policy is very opaque. And I personally advise people to go for Term Insurance Plan + Equity Mutual Funds to build the corpus for their children’s marriage and education.

Mutual funds are the excellent bet in the long run to build the sufficient corpus for your child’s future rather than Endowment Plans.