Assured Child Education Savings Plan

The Assured Child Education Savings Plan by Future Generali is a non-linked, non-participating, and guaranteed savings plan designed to assist you in paying for your child's entrance to one of the world's best colleges. Until your child becomes 17, the plan assists you in systematically planning for your child's graduation or post-graduation fees. You can choose to get up to four guaranteed yearly payouts under the plan starting after the policy term.

In the event of the life assured's untimely death, the plan waives any outstanding premiums. It gives the child a maturity benefit to assist them in realizing their aspirations as specified by you. In addition, the plan offers three additional rider options to expand the plan's coverage.

Features of Future Generali Assured Education Plan

The Future Generali Assured Child Education Savings Plan protects policyholders against death by paying a sum to the nominee based on the option selected. In addition, a maturity benefit is paid in the event of survival, making this plan an excellent choice for various scenarios. The noteworthy features of this child insurance policy are:

Death Benefit

A policyholder's nominee will receive a death benefit if the policyholder dies within the policy term. The death benefit is the greatest of the following:

• 105 percent of the policyholder's premiums paid up to the time of death, or
• Sum assured chosen at the outset of the policy, or
• An amount equal to ten times the policyholder's annualized premium paid

This sum is paid right away. In addition, on the date of the policyholder's death, the insurance provider will pay an amount equal to 5% of the sum assured every year (until the completion of the policy term). 

Maturity Benefit

The policyholder/nominee will get a maturity benefit at the end of the policy term. The amount is determined by the payment choice selected by the policyholder at the time of policy inception.

Future Generali Assured Education Plan Benefits

Following are the benefits of the Assured Child Education Savings Plan:

• This policy assists parents in saving money for their children's education. You can save money until the child reaches the age of 17, after which it can be utilized to pay for education.
• You can choose from three different pay-out frequencies with this plan. You can claim these guaranteed payments based on the child's educational needs.
• The Assured Child Education Savings Plan by Future Generali also includes several riders which can supplement the base policy’s coverage.
• Tax benefits as defined by the Income Tax Act are also available on it.

Assured Child Education Savings Plan Details

The Future Generali Assured Child Education Savings Plan best attributes are as follows:

• Pay-outs Are Guaranteed 

Starting at plan maturity, your child can receive the assured maturity benefits in a lump payment or throughout up to four yearly installments.

• Discount on a Large Sum Assured

The plan offers a discount of up to INR 5 per INR 1,000 Sum Assured for policies with a sum assured of INR 4 Lakh and above.

• Built-In Premium Waiver Benefit 

If the life assured's untimely death, the plan waives all future premiums and continues to pay the scheduled benefits.

• Rider Choices

Accidental Death Rider, Permanent Disability Rider, and Accidental Benefit Rider are the three-rider options available with the plan.

• Loans Based on Policy

To pay financial obligations, you can borrow up to 85 percent of the surrender value of your policy.

• Paid-Up Benefit Reduction

If you do not pay your premiums after the first two years, the insurance provider will convert your policy to a paid-up policy with decreased benefits.

• Surrender Benefit

The surrender benefit is paid in a more significant amount of guaranteed surrender value or exceptional surrender value if the policy is surrendered.

• Revival of Policy

Within five years of the first due premium payment, a lapsed or paid-up, you can reactivate the policy.

Eligibility for the Assured Child Education Savings Plan

Before investing your money, you should consider the following eligibility details for this child insurance plan: 

• Parents must be at least twenty-one years old to enter, with a maximum age of 50 years.
• The minimum age limit for your child's entry is 0 years old, and the maximum age limit is 10 years.
• The age of maturity is 35 years minimum and 67 years maximum.
• The policy term is set at 17 years minus the child's age at the time of purchase.
• Although the premium amount has no upper limit, it is recommended that a minimum of Rs 20,000 be paid annually and Rs 2,000 be paid monthly.
• The term of the premium payment is the same as the length of the plan.
• You can make premium payments on an annual or monthly basis.

Conclusion

This plan features a suicide exclusion, which stipulates that if the policyholder commits suicide within one year of obtaining the insurance, the insurer will pay an amount equal to 80% of the premiums paid by the policyholder.

Also Read: Life Insurance - Secure Children's Future - HDFC Bank