Eligibility
- Children (both boys and girls) up to 10 years of age only are eligible.
- Father is the proposer. The child's mother, if she has an income of her own, can also propose the policy. If both parents are not alive, legal guardian can propose.
- Policy can be gifted by grand parents, elder sisters and brothers, uncles by taking a single premium plan.
- No Medical exam is required.
- Premium waiver benefit is available by payment of additional premium.
- Family benefit is available. Risk is covered on the life of the proposer to the extent of 20% of basic sum assured subject to maximum of Rs.50, 000. The benefit is payable only if the proposer dies before the policy anniversary that follows after the child /life assured attains age 18. Proposer's age at entry should be 50 nbd (near birthday) or less. This is not available on the life of donors i.e. policies under gift.
- No Accident Benefit and EPDB available.
- Maximum sum assured allowed depends on income of proposer, adequacy of insurance on the lives of parents and other children. This can be taken apart from the limit prescribed for minor lives viz 10 lakhs.
- Rate of interest for revival is 12% p.a. on the defaulted premium.
- Minimum sum assured Rs.25, 000.
- Maximum sum assured Rs.5, 00,000.
Features
- This plan is evolved to help parents make provisions for anticipated educational expenses of their children. Both boys and girls up to 10 years of age are eligible.
- Parents can propose the child's life.
- Risk commences after 2 years from the date of commencement of policy or on policy anniversary following completion of 7 years by the child, whichever is later.
- Policy vests on life assured on the policy anniversary or the child attaining the age of 18 years.
- On vesting the life assured is the absolute owner of the policy and the proposer ceases to have any interest in the policy.
- Premiums cease on the policy anniversary immediately after the child /life assured attains age 18.
- Premiums are payable up to a term equal to 18 minus the age of the child at entry.
Benefits
Installment benefits
Sum assured will be paid in installments as under:
- 20% on policy anniversary after completing 18 years of age.
- 20% on policy anniversary after completing 20 years of age.
- 30% on policy anniversary after completing 22 years of age.
- 30% on policy anniversary after completing 24 years of age.
Guaranteed additions
Payable along with sum assured either on death within the term or on policy anniversary after attaining age 26 years. The policy has to be kept in full force at Rs.80 for each policy year to receive this benefit.
Death benefits
In the event of unfortunate death during the term, after commencement of risk but before maturity, sum assured becomes payable together with guaranteed additions, irrespective of installment benefit received earlier.
Loyalty additions
Loyalty additions depending on policy duration and sum assured are paid on maturity