New Children`s Deferred Assurance Plan

New Children`s Deferred Assurance Plan Eligibility Minimum age at entry 0 Maximum age at entry 11 years Maximum age at maturity 55 years Minimum sum assured Rs 10,000 Maximum sum assured Rs 2,00,000 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 age 0 years with maturity age of child at 50 years, the premium to be paid per Rs. 1,000 sum assured is only Rs. 8.70. This plan can be taken by for the benefit of children by parents/ legal guardians. Risk under the policy commences on child attaining age 12. The period from the commencement of the policy to the age at which it vests i.e. risk commences, is called deferred period. Before the expiry of the deferred date, the proposer can opt for the cash option to be paid. 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 at the select age. 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). Once the policy vests, i.e. on the expiry of the deferred period, there are two options: An option to receive cash can be exercised by the proposer. Cash option is the amount payable to the proposer on his request to terminate the contract on the deferred date OR Risk commences on the life assured and the contract becomes an ordinary Endowment Assurance plan. Sum assured is payable on survival to date of maturity or on earlier death