NEW PROFESSIONAL EDUCATION PLAN (PLAN-257)

 

INTRODUCTION

Today the prime concern of any parent is to make his child a top class professional so that the child can secure a place of pride in this era of specialization based career development. To make the child a professional, parents need to prepare a sound financial plan, guaranteeing availability of funds for the professional career development of the child in any eventuality.

 

LIC (International) offers you New Professional Education Plan, which is designed to take care of the above need. This plan provides you to secure the guaranteed monetary outflows for you child’s professional education at crucial stage of his/ her higher education.

Salient Features

  • Children from age 0 to 13 years ( last birthday) are eligible for this plan. However a child aged above 5 years will be granted this plan if he/ she is school going and a certified extract from the school record is given as age proof.
  • Parents having income can propose the child’s live. Policy can be gifted by grandparents, elder sister and brothers, uncles by taking a Single Premium plan.
  • Risk on the life of the child commences after 2 years from the date of commencement of Policy or on Policy anniversary following completion of 7 years by the child whichever is later.
  • Policy vests on Life Assured on the Policy Anniversary after the child attaining 18 years of age. On vesting, Life Assured is the absolute owner of the Policy and the proposer ceases to have any interest on the Policy.

 

 

BENEFITS

This is a Cash Back Plan for children.  The Sum Assured under this plan will be paid in installments from the Policy Anniversary falling due after the child attains the ages mentioned below, provided the Policy is in full force.  The plan provides the following payments:

 

  • 20% of Sum Assured on Policy Anniversary after child’s 18th Birthday
  • 20% of Sum Assured on Policy Anniversary after child’s 19th Birthday
  • 20% of sum Assured on Policy Anniversary after child’s 20th Birthday
  • 20% of Sum Assured on Policy Anniversary after child’s 21st Birthday
  • 20% of Sum Assured on Policy Anniversary after child’s 22nd Birthday
  • Accrued Guaranteed Addition shall be payable in lump sum on survival to the end of the Policy term. Loyalty Addition, if any, may be payable along with Maturity Benefit.

 

In case of unfortunate death of the child after commencement of risk, but before maturity, full Sum Assured together with Guaranteed Addition and Loyalty Addition (if any) is paid without deducting earlier instalments paid.

 

In case of unfortunate death of the child before the commencement of risk, premium paid till the date of death excluding extra premiums and/or rider premiums if any shall be payable to the Proposer.

In case of unfortunate death of the Proposer, if Premium Waiver Benefit Rider is availed under the plan, all future premiums are waived, and all benefits under the plan will continue treating the Policy as in-force and all benefits under the Policy shall be paid on events as described in the Policy Bond.

 

Guaranteed addition

Guaranteed Addition shall accrue on completion of every Policy year at a rate of USD 25 p.a. per 1000 Sum Assured.

Loyalty Addition:

This Policy will also be eligible for Loyalty Addition payable on maturity/death at a rate to be declared by the Company from time to time. Loyalty addition is not guaranteed. It depends on future experience of the Company.

 

Premium Waiver Benefit- Optional Rider

In case of unfortunate death of the Proposer, if Premium Waiver Benefit Rider is availed under the plan, all future premiums are waived, and all benefits under the plan will continue treating the Policy as in-force and all benefits under the Policy shall be paid on events as described in the Policy Bond.

 

The Premium Payment

Choice of flexible premium payments

  • Payment of premium till age 18 of the child (23- Age of the child)
  • Pay off in 5 years (Limited Term option)
  • Single Premium (One-Time option)

 

The annualized premiums can be paid in yearly, half yearly, quarterly or monthly modes to suit your conveniences of premium payment.

Discontinuation of premium

A regular/ limited premium paying Policy shall acquire a paid-up value on payment of two full Policy year’s premiums. If at least two full year’s premium have been paid and subsequent premium is not paid within the grace period, the Policy shall be converted into a reduced Paid-Up Policy.

Date of Commencement of Risk

  • This is a unique plan which operates as a life insurance Policy on the life of the child from the Policy anniversary after the child attains the age of 7 or after 2 years from the date of commencement of the Policy, whichever is later.
  • Coverage of risk on the proposer’s life continues if he has availed the Premium Waiver Benefit Rider.

 

Underwriting Requirements

All aspects of underwriting will be as per the underwriting Policy of the company.

 

BASIC PRODUCT FEATURES, RESTRICTIONS AND APPLICABILITY

Attribute Minimum limit Maximum limit
Sum Assured US $ 10,000 US$500,000
Age Entry 0 years (Last Birthday) 13 years (Last Birthday)
Age at Maturity 23 years (Last Birthday)
Term 23 – Age of child
Premium Paying Term Full Term Policy : ( 18 – Age of child),

for Limited Term Policy – 5 years; and

Single-Premium

SERVICING ASPECTS

Grace Period

A grace period of one calendar month but not less than 30 days shall be allowed for payment of yearly or half yearly or quarterly premiums and 15 days for monthly premiums.

Surrender Options

A regular/limited premium paying Policy will acquire a Surrender Value after two full Policy year’s premiums have been paid.

Policy Loan

Policyholder can raise a loan on the security of the Policy after the Policy has acquired Surrender Value after payment of premium at least for 2 years from the date of commencement.

Paid Up value

If premium have been paid for a period of two years and thereafter due to unforeseen circumstances, payment cannot be made, Policy will automatically be converted into a Paid-Up Policy for a reduced Sum Assured, payable on the date of maturity or in event of unfortunate death, if earlier.

 

SPECIAL PROVISIONS

Premium Sealing

One can pay premium in advance up to a period of 5 years in lump sum at a discounted rate. Unutilized portion of lump sum amount, if any, is refundable.