Child Education Plans & Child Insurance Plans Online
Updated On Jul 01, 2022
Table of Contents
A child education plan financially protects your child's future and helps you save your hard-earned money. It ensures that you face no financial hassle when providing the best education/future to your child. It ensures that your child can continue with his or her education, even in your absence.
Why Do You Need a Child Plan for Education?
- Comprehensive protection to your child in the event of your unfortunate death
- Guaranteed payout of the targeted amount.
- Flexible Options to receive returns (Lump Sum or Regular Incomes)
- Tax Benefits
4 Reasons to Buy Child Plan
- Choose between payout options based on your child's needs – Money back or Endowment.
- With the Money-back option, you will get guaranteed payouts in the last 5 years before maturity to meet your child's education needs. At maturity, you will get a guaranteed Maturity payout for your child's higher education and career needs.
- With the Endowment plan, you will get a guaranteed lump sum amount at maturity, provided the policy is in force, to help meet your child's dream.
- Built-in premium waiver benefits ensure that your child's needs will be taken care of. If something unfortunate were to happen to the parent (Life Insured), the future Premiums are waived off while all the benefits in the policy continue.
- Flexibility to choose your Policy Term between 11 and 21 years: You can choose a Policy Term between 11 to 21 years based on your child's age. Also, choose the Premium payment type – 'limited pay' where the premium payment term is 5 years lesser than the Policy Term or 'regular pay' where the Premium payment term is equal to Policy Term.
- The potential upside with a bonus: The non-guaranteed annual simple reversionary bonus gets accrued to the policy at the end of each year. All due premiums are paid and payable at maturity. The company may also declare a non-guaranteed terminal bonus that will be payable at maturity.
Features of Child Education Plan
Grace period
The grace period is the period given to you from your Premium due date to pay the Premium without any impact on the benefits in your policy. Grace period is 15 days for monthly mode and 30 days for annual/ semi-annual/ quarterly premium payment modes.
Lapsation
The policy acquires a Surrender Value after paying two annualised premiums.
(i) If the policy has not acquired a Surrender Value :
In case you do not pay the premiums within your Grace period, your policy will lapse and your insurance cover will cease to exist. You can revive the policy within the period allowed for the revival of the policy. At the end of the revival period, if the policy is not revived, then the policy will be terminated and no benefits will be payable.
(ii) If the policy has acquired a Surrender Value:
In case you do not pay the premiums within your Grace period, your policy will be lapsed and converted into paying up. You have the option to revive the policy within the period given for the revival of the policy. At the end of the revival period, if the policy is not revived, the policy will continue in paid-up status and the paid-up value will be payable.
Reduced Paid-Up Value
If the policy has acquired a surrender value and has lapsed due to any reason, then your policy will be converted into 'paid up'. Once the policy becomes paid up, the benefits under the policy will be reduced. All the benefits including the Death Benefit, Guaranteed Pay-out (for Money Back Option), Surrender and Maturity Benefit would be calculated according to the Reduced Paid-Up Value.
Revival
You have the flexibility to revive all the benefits under your policy within five years after the due date of the Premium in default. However, the company would require :
1. A written application from you for revival
2. Satisfactory evidence of insurability.
3. Payment of an amount equal to all unpaid premiums together with interest at such rate as the company may charge for such revival, as decided by the company from time to time subject to approval
4. Terms and conditions as may be specified by the company from time to time.
Conclusion
We as parents want our children to have the best education and facilities. Keeping in mind that the cost of education is rising day by day, it is imperative for us to be financially secure and be well prepared for a seamless and hassle-free future. Professional courses and private college are quite expensive in today's time. Keeping this in mind, a child insurance plan helps you cover up for the financial requirement that will arise in future and will financially secure you.
