The Shehnai Policy is an innovative life insurance product designed to address the financial needs of concerned parents who want to save for their children's higher education, marriage, and other expenses in the future. This policy provides a combination of benefits to secure the child's future and protect against inflation. Here are the key features and details of the Shehnai Policy:
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 Shehnai Policy. These riders can provide additional benefits or protection.
The Shehnai Policy is designed for parents who want to save and provide for their children's financial needs, including higher education and marriage expenses, at a specific age. The lump sum benefit from the policy becomes payable when the child attains the age of 25 years.
This policy includes an innovative feature to address inflation concerns. It offers an automatic annual increase of 6% in both the sum insured and the premium starting from the third policy year onward. This helps the policy's value keep up with the rising cost of living.
The Shehnai Policy participates in the surplus of State Life. The policyholder receives a bonus, currently at a rate of Rs 105 per thousand per annum of the adjusted opening cash value.
The policy matures when the child attains the age of 25 years. At maturity, the cash value of the policy is paid to the child. This cash value includes all the bonuses attached to the policy.
In the unfortunate event of the life insured's death during the policy term, premium payments cease, and the sum insured applicable to the policy year of death is deferred. It becomes payable when the child attains the age of 25. At the time of the life insured's death, the sum insured is added to the "adjusted opening cash value," creating the "enhanced cash value." The enhanced cash value continues to participate in State Life's surplus until it is paid out to the child when they reach the age of 25. The child has the option to receive the benefit in a lump sum or in five equal annual installments.
The 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 State Life upon the policyholder's request.
Insurance companies typically provide tools or calculators to help individuals estimate the premium they would pay for a Shehnai Policy. Premiums are determined based on factors such as the age of the policyholder and the chosen policy term.
In summary, the Shehnai Policy is a comprehensive life insurance plan that allows parents to save for their child's future financial needs while protecting against inflation. It offers the flexibility of an automatic increase in the sum insured, participation in State Life's surplus, and the option for the child to receive the benefit either in a lump sum or in installments. This policy addresses the long-term financial goals of parents who want to ensure their child's financial security.
