Children`s Deferred Assurance Plan

Children`s Deferred Assurance Plan Eligibility On the deferment date the child should have attained majority. During deferred period, reduced cash option is available if premiums are not paid regularly after payment of 3 years premium. Medical exam is required if deferred period is less than 10 years. Features This policy can be taken for children from 0 years. Hence, maximum endowment period is available under this plan, which means low amount of premiums need to be paid. Therefore, an assurance for a relatively large amount is secured for the child, at a substantially small premium amount. For entry at age 0 years with maturity of policy at 50 years, the premium to be paid per Rs. 1,000 sum assured is only Rs. 8.70 This plan can be taken for the benefit of children by parents/ legal guardians. Basically an Endowment Assurance plan with risk commencing at a select age of the child. An option is available as regards, the age at commencement of risk on the life of the child, which may be 18 years (complete), or 21 years (complete). The period from the commencement of the policy to the age at which it vests i.e. risk commences, is called Deferred period. On expiry of deferred period the policy automatically vests on life assured. The life assured receives the full sum assured on survival to date of maturity or on early death. No medical exam is required where the deferment period is 10 years or more. Benefits In case the child happens to die before the deferred date i.e. before the policy vests, the premiums paid are refunded. In case, the proposer i.e. the parent happens to die during the deferment period, the policy has to be continued by regular payment of premiums. (However, by payment of an additional premium, the proposer can secure a waiver of premiums i.e. premium need not be paid on proposer's death till date of vesting). Before the expiry of the deferred period, the proposer can receive the cash option available under the policy by making a request in writing. If the request for cash option is not made before the deferred date, and the policy is in force, then risk commences on the life assured from the vesting date, and the contract becomes an ordinary Endowment Assurance plan. Sum assured is payable on survival to date of maturity or on death, whichever is earlier.