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PROFESSIONAL EDUCATION PLAN (PLAN-219)

 

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, a parent needs 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 Professional Education Plan, which is designed to take care of the above need.

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 attaining the age of 18 years
  • 20% of Sum Assured on attaining the age of 19 years
  • 20% of sum Assured on attaining the age of 20 years
  • 20% of Sum Assured on attaining the age of 21 years
  • 20% of Sum Assured on attaining the age of 22 years
  • Guaranteed Addition (and loyalty addition if any) on surviving age of 23 years

Another option provides payment of 15% of Sum Assured every year for 5 years and rest 25% of the Sum Assured along with guaranteed addition in the 6th year.

Guaranteed addition

A policy of $ 100,000 would provide payment of yearly guaranteed addition of $ 2500 (at the rate of 25 per thousand) for each policy year, payable to the life assured along with S.A.(if any)  on attaining the age of 23 years or earlier in the event of death.

Loyalty Addition:

This policy will also be eligible for Loyalty Addition payable on maturity / death at a rate to be declared from time to time provided the policy has run for a period of at least 15 years, by payment of all premiums. Loyalty addition depends on valuation of business.

In case of unfortunate death of the child after commencement of risk, but before maturity, full Sum Assured together with Guarantee 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, the policy is cancelled and premiums excluding PWB and FPB will be refunded. In case of death of the proposer, if PWB benefit is availed under the plan, all future premiums are waived, and if FPB is availed, 20% of basic Sum Assured will be payable.

Premium Waiver Benefit

Proposers up to 50 years of age are eligible for Premium Waiver Benefit .By availing this benefit, in case of unfortunate death of the proposer during premium paying period, all the future premiums will be waived

The Premium Payment

Choice of flexible premium payments

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

The Premiums can be paid in yearly, half yearly, quarterly or monthly modes to suit your conveniences.

Discontinuation of premium

If the premium is not paid with in the days of grace, the policy lapses. However, if at least 3 full years (2 years in the case of limited term) premium have been paid and any subsequent premium is not paid, the Sum Assured shall be reduced to such a sum as shall bear the same ratio to the full sum assured to the total number originally stipulated for in the policy. Such reduced paid up policy shall not be entitled to participate in future profits.

Family Protection Benefit Rider (FPB)

  • Family can additionally can be benefited by insuring the proposer for 20% of the sum assured under this policy during the deferment period (child is below the age of 18), by paying an additional premium.
  • The benefit is granted to proposers who are standard lives subject to normal underwriting requirements. Proposers up to the age of 50 years nearer birthday can opt for the benefit.
  • This benefit will be payable in case of proposer dies before the policy anniversary on which the child completes 18 years of age.

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 PWB and FPB riders.

Medical Examination

  • If the proposer opts for PWB and FPB, a medical report on proposer’s life may be required as per rules.
  • This plan is not allowed to physically handicapped children.

BASIC PRODUCT FEATURES, RESTRICTIONS AND APPLICABILITY

Attribute Minimum limit Maximum limit
Sum Assured US $ 5000 US$250,000
Age Entry 0 years (Last Birthday) 13 years (Last Birthday)
Age at Maturity 23 years (Last Birthday)
Term 23 – Age of child
Mode of Premium Payment Yearly, Half Yearly, Quarterly, Monthly and Single

Servicing Aspects

Policy Loan

Policy loan is not granted under this plan.

Paid Up value

If  premium have been paid for a period of three years(two years in case of limited term payment) 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

  • Parents can propose the child’s life. Policy can be gifted by grandparents, elder sisters and brothers, uncles by taking a single premium plan.
  • It is money back plan wherein survival benefits are paid at regular intervals of one year after the child attains the age of 18 years.
  • Risk 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 right on the policy.

Premiums cease on the policy anniversary immediately after the child /life assured attains age 18.

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.

Portability

Policy can be transferred to LIC of India on repatriation of the policy holder to India. The transfer will be effected only if full first year’s premium is paid and on completion of one year from the date of acceptance, provided the policy is in  force for the full sum assured and on receipt of a written request from the policy holder. The sum assured and attached bonus, if any, shall stand altered to the equivalent Indian rupee amount at the rate of exchange, current on the date on which the request for transfer is received by the Company and subject to the instruction current on that date of Reserve Bank of India.