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 Education or Marriage Assurance




  • These are endowment policies taken out for the specific purpose of meeting the expenses on the education or marriage of child of the insured. The policy is an endowment for years varying from 5 to 17 to be taken out between the ages of 20 and 55 years of the insured. The period of the endowment can be times so as to make the policy-money available to the insured on or about the date by which the beneficiary child is old enough to require the amount.

  • The policy covers risk on the life of the parent, and the beneficiary child is assured of receiving its value on the specified date irrespective of whether the insured parent lives or dies within the period of the policy. The amount is payable, only on the specified date to the insured parent, if alive, and failing that to the beneficiary child. If the insured parent dies before the specified date, the policy becomes a claim but the value is not paid immediately. Instead the amount is deposited in the Post Office Savings Bank on behalf of the beneficiary child. The amount continues to earn profit at the rate allowed on ordinary P.O.S.B. deposits (current rate 10 percent) and may be withdrawn on or after the specified date.

  • The amount of the policy is payable in lump sum in the case of endowment marriage policies but in the case of education endowment policies the amount may also be paid in monthly, quarterly, half-yearly or annual installments spread over a period of five to seven years as desired by the policy holder. When payment is to be made in installments, the value of the policy is deposited in a Post Office Savings Bank on behalf of the beneficiary child as soon as the policy has matured or become a claim by death of the insured. Withdrawals from such a Post Office Saving Bank account may be made only in accordance with the mode of payment stipulated in the policy contract. The amount continues to earn profit at the rate applicable to ordinary P.O.S.B deposits (current rate 10 percent) so long as it is not completely withdrawn.