Wednesday, 29 April 2015

Best Child Education Policy - SBI Life

 Loving your child is what comes naturally but as a responsible parent you have certain obligations towards your child. Getting a child plan is one such obligation, infact the most important one.

The child education policy is a life insurance product specially designed as a savings tool to provide an amount of money when your child reaches the age for entry into college (18 years and above). The funds can be used to pay for your child's higher education expenses. Under this policy, the child is the life assured, while the parent/legal guardian is the policy owner. 

The cost of higher education is increasing. The need for access to higher education and the cost will put a financial strain on you and your family. That is why it is important to start planning for your child's education as soon as possible, because the earlier you begin, the more time you allow your money to grow. The child education policy will provide the funds needed by your child to pursue further education and assures that whatever happens in the future, your child will still have the means to pursue some of his/her goals in life.

(Based on 10% interest)
Insurance Coverage = 10 times the Premium



Term (PPT)

At End of 5th Year

At End of 8th Year

At End of 10th Year

At End of 15th Year

At End of 20th Year

1 24000 8 Yrs Pay mode 2,63,516 3,11,390 4,73,185 7,16,755
2 24000 10 Yrs Pay mode Pay mode 3,63,381 5,46,313 8,23,286
3 24000 15 Yrs Pay mode Pay mode Pay mode 7,01,285 10,57,927
4 24000 20 Yrs Pay mode Pay mode Pay mode Pay mode 12,12,900
5 50000 5 Yrs 3,01,926 3,84,440 4,52,265 6,80,891 10,27,049
6 50000 8 Yrs Pay mode 5,60,144 6,63,696 10,13,087 15,39,119
7 50000 10 Yrs Pay mode Pay mode 7,71,896 11,64,838 17,59,783
8 50000 15 Yrs Pay mode Pay mode Pay mode 14,87,698 22,48,618
9 50000 20 Yrs Pay mode Pay mode Pay mode Pay mode 25,71,478

Age at Entry *Child: Min: 0 yearsMax: 17 years
Proposer: Min: 18 yearsMax: 57 years
Max. Age* at Maturity65 years
Policy Term
Min: 8 years
Max: 25 years less child’s age at entry
On Maturity, the age of child should be between 18 to 25 years)
Premium Payment
Terms (PPT)
Single Premium (SP)
5 to 25 years (subject to the limits of policy term)
Premium Amounts(x100)Minimum:
5 years to 7 yearsYearly50,000
 Half Yearly25,000
Maturity Benefit: On completion of Policy Term, Fund Value will be paid.

Death Benefit:
In the event of unfortunate death of life assured, a lump sum benefit equal to higher of the Sum Assured or 105% of all premiums paid till date of death will be payable.
The company continue’s to pay your future premium(s) on your behalf (inbuilt Premium Payor Waiver Benefit) and the accumulated fund value will be paid at maturity
In case of your unfortunate accidental death or accidental total and permanent disability we pay:
Additional benefit equal to Accident benefit Sum Assured
The Accident Benefit and Premium Payor Waiver Benefit are not available in the Single Premium policies.

Tax Benefits
Tax deduction under Section 80C is available. However in case the premium paid during the financial year, exceeds 10% of the sum assured, the benefit will be limited up to 10% of the sum assured
Tax exemption under Section 10(10D) is available at the time of maturity/surrender, subject to the premium not exceeding 10% of the sum assured in any of the years during the term of the policy. However, death proceeds are completely exempt
Tax benefits, are as per the provisions of the Income Tax laws & are subject to change from time to time. Please consult your tax advisor for details

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