Children’s Deferred Endowment Plan at 18 years with profits

Children’s Deferred Endowment Plan

Table No. 50

(Deferred Endowment vesting at 18 years with profits)

This Plan of assurance is designed to enable a parent or a legal guardian  or any near relative of the child to provide for the child by payment of a very low rate of premium. This is an endowment assurance policy, risk under which will commence at 18 years of age.  The policy envisages two stages, one covering the period from the date of commencement of the policy to the deferred date (that is the date of commencement of risk on child's life) called the deferment period and the other covering the period from the deferred date to the date on which the policy emerges as claim by the death of the child or its survival to a stipulated date.

A combined policy will be issued covering both the aforesaid periods. Ordinarily, policies under this scheme will be issued on the lives of children, both male and female who have not completed  15  years.  No medical examination would be  required where the deferment period is 10 years or more but where it is less than 10 years , medical examination of the child would be required.

Under this plan, proposals on the lives of minor girls will be entertained only if the social, cultural educational background of the family is good and provided the father and the other insurable members of the family are adequately insured.

The chief advantage of this scheme is that an assurance for a relatively large amount can be secured to a child on reaching the selected age  for a premium substantially smaller than what would be required if the assurance  were to be effected  at the age and this irrespective of the state of the child's health then.

The special provisions applicable to this policy provide that if the life assured shall be alive on the deferred date, if all premium due prior to the deferred date have been paid, the policy shall vest in the life assured  on the deferred date and shall on such vesting be deemed to be  a contract between  the corporation and the life assured as the absolute owner of the policy and the proposer shall cease to have any right or interest herein.

Benefits

Ø  Maturity Benefits:

ü  Basic Sum Assured + Vested Bonus + Final Additional Bonus

Ø  Death Benefits:

ü  Basic Sum Assured + Vested Bonus + Final Additional Bonus,  if death occurs after date of commencement of risk.

ü  Total Premiums paid excluding the premiums for premium waiver benefit will be refund, if death occurs before  date of commencement of risk.

Ø  Mode Benefit:

ü  The following table shows the rebate available on the mode of premium payment.

Mode	Rebate
Yearly	1.5% of tabular premium
Half - Yearly	Nil
Quarterly	Nil

Ø  Sum Assured Benefit:

ü  The following table shows the rebate available on the sum assured.

Sum Assured	Rebate
Up To Rs. 50,000	Nil
Rs. 50,001 To Rs. 1,00,000	Re. 0.50 Per Thousand
Rs. 1,00,001 And Above	Re. 1 Per Thousand

Features

Ø  Risk cover starts at the age of  18.

Ø  Premium  Waiver Benefit is available.

Ø  Minimum Sum Assured     Rs. 50,000

Ø  Minimum age at entry  -  No limit

Ø  Maximum age at entry -  14

Ø  Minimum Term – 11

Ø  Maximum Term - 50

Ø  Modes Allowed - Yearly,  Half Yearly,  Quarterly,  Monthly.

Ø  No Medical Examination will be necessary if the deferment period is  10 years or more. Other wise Medical examination will be necessary.

Ø  No Loans are granted during the deferment period.

Ø  Policy will vest in the life of life assured on the deferred date and the proposer shall cease to have any right.