The Child Protection Assurance is a joint life assurance plan that provides coverage for both a child and one of the parents. This plan is designed to offer financial protection for a child's future, particularly in the event of the death of the primary breadwinner in the family. Here are the key features and details of the Child Protection Assurance plan:
The Child Protection Assurance is a joint life assurance plan that covers the lives of a child and one of the parents simultaneously. Both individuals are insured under the same policy.
If both the policyholder (parent) and the child survive the full term of the policy, the sum insured, along with any accrued bonuses, becomes payable to the policyholder.
In the unfortunate event of the policyholder's death before the completion of the policy term, the following benefits are provided:
Payment of premiums ceases.
The child is paid an income of Rs 100 per thousand sum insured per annum until the completion of the policy term.
On the completion of the policy term, the sum insured (including bonuses accrued until the death of the policyholder) is paid to the child.
If the child dies during the policy term (Allah forbid) and during the lifetime of the policyholder, the death claim payable to the policyholder depends on the age at the time of the child's death. The specific terms and conditions for this scenario may vary depending on the insurance provider.
The Child Protection Assurance plan is suitable for parents who want to ensure the financial well-being of their children in the event of the primary breadwinner's death. It is designed to provide coverage for both the child and the parent in a single policy, making it a comprehensive solution for securing a child's future financial needs.
The coverage of the policy can be expanded by attaching supplementary covers or riders, providing additional benefits or protection. The specific supplementary covers available may vary depending on the insurance provider.
Insurance companies typically offer tools or calculators to help individuals estimate the premium they would pay for a Child Protection Assurance plan. Premiums are determined based on factors such as the age of the policyholder, sum insured, and chosen policy term.
In summary, the Child Protection Assurance plan is designed to provide financial protection for children's future needs, especially in case the primary breadwinner of the family passes away. It offers a combination of survival and death benefits for both the child and the parent, making it a suitable choice for parents who want to secure their children's financial future. Supplementary covers can be added to enhance the policy's coverage.
Death claim is usually payable to the nominee/ assignee or the legal successor, as lhe case may be. However, if the
deceased policyholder has not nominated/ assigned the policy or not made a will, the claim is payable lo the holder of
a succession certificate or such evidence of title from a Court of Law.
When the policy money becomes due for payment on the death of the policyholder, it can be paid only to that person
who is legally entilled to give a valid and effective discharge to the Corporation. lf the policy bears nomination, the
claim is settled in favour of lhe nominee. Similarly, if the policy is assigned, the assignee receives the claim amounl. lt
should be noted that an assignment of a policy automatically cancels the existing nomination. Hence, when such a
policy is reassigned in favour of the policyholder, it is necessary to make fresh nomination.
When a policyholder wants to change his address in State Lifeia%s records, notice of such charrge should be given
lo the zonal office servicing his policy. Policy records can be transferred from the zonal office thal services the policy
to any other zonal office nearest to the policyholde/s place of residence. The correct address facilitates better
services and quicker settlemenl of claims
When the premium is not paid within the days of grace provided after the due date, the policy lapses. The grace
period in case of yearly, half-yearly and quarterly modes of paymenl is one month and in case of the monthly mode of
payment, it is 15 days.
A lapsed policy may be revived during the lifetime of the life insured, bui within a period of 5 years from the due date
of the first unpaid premium and b€fore the date of maturity. Pevival of a lapsed policy is considered either on nonmedical or medical basis depending upon the age ofthe life insured at the time of revival and the ium to
No alteration is permissible in the policy document - the evidence of contract, unless both the parties to the contracl
agree. After the policy is issued, a policyholder in a number of cases finds the terms not suitable to him or her and
desires to change them to suit his or her convenience. State Life also realizes thal insurance being a long-term
contract, certain changes under given circumslances might necessitate an alteration of the contract. Keeping in view
the basic principles of insurance and administrative convenience, State Life permits some allerations. As a rule, State
Life will not permit alterations wilhin the 1st year from the commencement of the policy.
The loss or destruction of a policy document does noi in any way absolve the Corporation of the liability of payment of
policy monies when the claim arises. lf the policy is lost or destroyed, claim or sum insured will be paid to the
claimant or policyholder after he or she furnishes an indemnity bond jointly with two sureties. Similarly, a policy can
be surendered even if the original policy documenl is lost. However, for the purpose of loan or survival benefil one
has to obtain a duplicate policy. The policy being a legal document, the issue of duplicate policy involves the normal
procedures like issuing a newspaper advertisement.
A lapsed Life Insurance policy can be revived lvithin 5 years ftom the date of the llrst unpaid prem.um.
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 lhe policy has been in force for a minimum stipulated period.
ln case the policy is lost, policyholder should get a duplicate policy issued. State Life issues it after completion of
certain formalilies and a nominal fee.
A lapsed policy can be rcvived within five years from lhe dale of the first unpaid premium.
The calculation of life insurance premiums is primarily based on four laclots iLy. age of the person to be insured
insured, type of policy, sum insured and term of the policy.
Life insurance is mainly considered as a saving instrument rather than an inveslment avenue as it promotes
compulsory savings besides protecting the family of the policyholder in the event of unforeseen happening. lt is the
only saving inslrument, which covers the life risk. A loan can also be availed against the State Life insurance policies.
Planning for the financial consequences of a premature death is an essential part of every financial plan. Generally,
the consequences are simply too large to ignore and cannot be totally covered with your own resources.
Life insurance is nothing but a contracl with an insurance company under which the insured (purchaser) pays a
premium in exchange for coverage of specitied losses. Life ;nsurance protects your family against the risk of the
premalure death of you (or your spouse). Life insurance planning should consider your family's s.lrort-term needs (for
example, medical expenses) and long-term needs (for example, replacing your income).
ln the course of our life we are accosted by risk-that of failing health, financial losses, accidents and so on. lnsurance
is a means by which life's uncedainties are addressed in financial terms. lt offers a monetary comp€nsation against
those losses. lnsurance is considered more as a hedging mechanism rather than a true investmanl avenue. Life
insurance, in particular is essentially acknowledged as a mechanism which eliminates risk substituting certainty for
uncertainty primarily by lransferring risk from the insured to the insurer.
At present loans are granted up to 80% of the Surrender Value for policies, where the premium due is fully paid-up.
The rate of profit or return charged is '10% per annum compounded semiannually.
Policyholders are eligible to take loan on their policies subject to certain rules and regulations.
The policyholder has to apply for loan in a prescribed form and submit the policy document with the form duly
completed.
Cunently State Life is charging 10% interest on policy loans. lnterest is payable half-yeady.
A policyholder can repay the loan amount eilher in part or in full anytime during the term of the policy
lf loan is not repaid during the term of the policy or eariy claim, the amount of loan plus profit or relurn, if any, will be
deducted from the claim money and the balance amount will be paid to the person making the claim.
The very fundamental principle of spreading of the risk is aclually practiced by the insurance companies by reinsuflng
the risks that they have insured.
UndeMriting of a risk involves consideration of material facts on the basis of which a decision will oe taken whether to
accepl the risk and if so at what rate of premium
lf 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 hereinafrer, 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 lnsured will be specially calculaled to allow for
the clearance of all outstanding dues of Slate Life againsl the policy. No further premium(s) will be payable but the
sum insured will be reduced. Any bonuses attached to the policy will be taken into consideration while determining
the paid-up sum insured. A policy once paid-up will not be entitled to any further bonuses. lf the specially calculated
paid-up sum insured works out to be less than Rs.100/ the policy will not be converted into paid-up but will be treated
as having been forfeited losing all its benefits. A policy thus made paid-up may be revived for full sum insured as per
provision of condition No-4 above.
B Automatic Premium Loan Option
So long as the nel surrender value of the policy equals or exceeds any due premium remaininJ 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 nel surrender value of the policy. When the net surrender value of the policy becomes less than a due premium remaining unpaid beyond its grace period, the policy will be kept in full force for a i I further broken period. This broken period will bear the same proportion to the full period of the unpaid premium as the net surrender value bears to the unpaid premium. The policy, will automaticaliy be forfeited and loie all beneflts at the expiry of the said broken period. Protil or retum (however called or described) will be charged on automatic premium loan at rates determined by State Life from time to time, so long as any automatic premium loan along with profit or relum (However called or described) is outstanding against this policy, any: payment received by State Life will first be applied to reduce this debt.
