The Child Education & Marriage Plan is a life insurance policy specifically designed to provide financial protection for a child's future, particularly for their education and marriage expenses. This plan offers various features and benefits to ensure the child's financial security. Here are the key features and details of the Child Education & Marriage Plan:
Eligibility:
Minimum Entry Age: 20 years
Maximum Entry Age: 60 years
Maximum Age at Maturity: 70 years
Policyholders have the option to attach supplementary covers or riders to enhance the coverage of their Child Education & Marriage Plan. These riders can provide additional benefits or protection.
At the completion of the policy term, the full sum insured, along with any accrued bonuses, becomes payable to the policyholder. This lump sum benefit is intended to support the child's financial needs, such as higher education or marriage.
In the unfortunate event of the policyholder's death before the completion of the policy term, a family income benefit is provided to the child. This benefit amounts to Rs 240 per 1000 sum insured per annum and is paid to the child until the policy term is completed. Additionally, future premiums under the policy are waived, and the policy remains in force with the full sum insured. The policy continues to participate in the insurance company's surplus and receive bonuses.
Upon the completion of the policy term, the child has two options for receiving the proceeds:
Receiving the proceeds in a lump sum.
Receiving the proceeds in five equal installments.
The policy can be continued in the same manner as earlier by switching the plan for the benefit of another child.
The policyholder has the option to get a refund of all the previous premiums paid till the death of the child or the cash value of the policy, whichever is higher, and terminate the contract.
The Child Education & Marriage Plan is well-suited for parents who are concerned about the future financial needs of their children. The policy's term is designed to ensure that the lump sum benefit becomes payable when the child reaches a predetermined age, typically at 18, 21, or 25 years. These ages are selected based on the occasions when children typically need financial assistance for higher education, marriage, or starting a business. Grandparents, uncles, aunts, or any person responsible for the child's financial well-being can also affect this plan.
This policy acquires a surrender value after being in force for at least two consecutive years, provided that no premiums are in default. The surrender value can be quoted by the insurance company upon the policyholder's request.
Insurance companies typically provide tools or calculators to help individuals estimate the premium they would pay for a Child Education & Marriage Plan policy. Premiums are determined based on factors such as the age of the policyholder and the selected sum insured.
In summary, the Child Education & Marriage Plan is a comprehensive life insurance policy tailored to secure a child's future financial needs, particularly for education and marriage expenses. It provides flexibility in terms of lump-sum and installment payouts, family income benefits, and continuation options. This plan is ideal for parents and other guardians who want to ensure the financial security of their children.
Death claim is usually payable to the nominee/ assignee or the legal successor, as the case may be. However, if the deceased policyholder has not nominated/ assigned the policy or not made a will, the claim is payable to the holder of a succession certificate or such evidence of title from a Court of Law.
State Life distributes its profits among it policyholders every year in the form of bonuses. Bonuses are credited to the account of the policyholders and paid at the time of maturity or at the time of death (if earlier) . Bonus is declared as a certain amount per thousand of sum assured.
Life insurance is normally offered after a medical examination of the life to be insured. However, to facilitate greater spread of insurance and also as a measure of relaxation, State Life has been extending insurance cover without any medical examination, subject to certain conditions. This facility is called Non-medical Scheme.
Underwriting of a risk involves consideration of material facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium.
The amount payable by State Life on termination of the policy contract at the desire of the policyholder before the expiry of policy term is known as the surrender value of the policy.
It is not possible to raise money against your life insurance policy. However, there is a provision available by way of assignment or mortgaging the policy provided the policy has been in force for a minimum stipulated period.
The calculation of life insurance premiums is primarily based on age of the person to be insured, sum insured and term of the policy.
The policyholder has to apply for loan in a prescribed form and submit the policy document with the form duly completed.
A policyholder can repay the loan amount either in part or in full anytime during the term of the policy.
If the policy has acquired a surrender value and a premium has remained unpaid beyond the grace period, the policyholder will entitled to benefits under one of the following two options given hereinafter, depending on the option exercised (if any) in his Proposal for this policy:
A – Automatic paid-up Option
This policy will be converted into a paid-up policy. The paid-up Sum Insured will be specially calculated to allow for the clearance of all outstanding dues of State Life against the policy.
B – Automatic Premium Loan Option
So long as the net surrender value of the policy equals or exceeds any due premium remaining unpaid beyond its grace period, State Life will continue to keep this policy in full force, and treat the said premium as paid by creating an automatic premium loan against the net surrender value of the policy.
