IDEAL PLAN TO TAKE CARE OF YOUR CHILD'S FUTURE

FAQs ANSWERED

`Whose life is covered for life insurance under Child Future Plan ?’

• Your child’s life
  

`Is risk coverage under the plan immediate or deferred ?’

• If your child’s age is upto 10 years, risk coverage is either after 2 years from the date of commencement of the plan or child’s attaining 12 years, whichever is higher. In other cases, it is from child’s attaining 12 years.
  

`How long I need to pay premium ?’

• Under option 1, you need to pay only for 6 years, irrespective of the policy term.
• Under option 2, you need to pay for (Policy Term-5 years).
• In either of the options, premium payment to stop in case of child’s death whenever it occurs after the date of commencement of risk.
  

`What does my child get on survival upto completion of the policy term chosen'?

• 50 % of the sum insured + Bonus on the full sum insured +Final (Additional) Bonus, if any.

What are the policy terms available ?’

• 11 to 27 years

`What are the minimum and maximum ages at maturity ?'

• 23 and 27 Years (age last birthday)

`What is payable under the plan in case of my child’s death before completion of the policy term chosen ?'

• Insured amount + Reversionary Bonus + Final Additional Bonus (if any), if it occurs after commencement of risk, but, before 5 years of the policy expiry term.
• Insured amount, if it occurs within 5 years from the expiry of the policy term.
• All premiums paid without any deduction whatsoever +3% per year compounding Yearly, in case of child’s death before commencement of risk.

`Are funds available during currency of the Plan ?’

• Yes. 25 % and 10% each of the sum insured respectively 5,4,3,2,1 years before the date of expiry of the policy term.

'What are the Premium payment Options available under the plan ?’

• Yearly, Half-yearly or Quarterly.

`What, if, during minority of my child, there is risk on my life and nobody is in a position to pay remaining premium '?

• Nodoubt the policy lapses. However, you can avail premium waiver benefit by payment of an extra premium according to your age.

'Can I get any income-tax benefit on the premium paid under Child Future Plan ?’

• Yes, within overall limit of Rs 1,00,000/- per annum under section 80C of the I.T Act along with other savings allowed under the same section.

`Is there any I.T liability on the policy proceeds received on maturity/death under Child Future Plan ?’

• In case of policies issued prior to 01/04/2003, Policy proceeds received by way of maturity or death are free from income-tax under Section 10(10D) of the Income-Tax Act, whatever be the accumulated bonus.
• In case of policies issued after 01/04/2003, if the premium paid in any year exceeds 20% of the capital sum insured, all amounts received less of the total premiums paid are subject to Income-tax in the year of receipt.

`What is so special about Child Future Plan ?’

• It provides for life insurance coverage for next 7 years on completion of the policy term chosen without any more premium.
  

'Is my Child eligible to enter Child Future Plan ?’

• Yes, provided it is in the age group of 0 to 12 years (Last birthday).