Education Plans are Insurance cum Investment Plans that help parents secure the financial future of the child, whether it is for higher education or for the child’s marriage.
Key Benefits Education Plans- Income Benefit Rider
- Waiver of Premium Benefit
- Disability Rider
- Key Milestones Of Child’s Education
Know more about Child Plans
What is a child plan?Child plans are specially designed to help the parent plan for the future needs of the child at certain milestones like education, marriage etc.
Child Insurance policies are a combination of life insurance and investments. Typically these have milestone driven payments e.g. payments when the child reaches a certain age, say Class X or Class XII or Degree.
In an unfortunate event of death within the premium paying period, the policy continues and the future premiums are waived and the beneficiary ( in this case the child) gets the Sum Assured and all other Benefits, Bonus etc. at the end of the term.
How is a policy term calculated in Child Plan?The term of the policy will be calculated as the difference between your child's current age and the age of your child when the policy matures.
What are the different kinds of riders which can be added to the plan?Some of the rider’s that can be added are Accidental Death and Disability Rider, Critical illness Rider, Waiver of Premium Rider and Income benefit rider.
What is Cover Continuance Option? An option available on specified unit linked polices, where the policy holder can choose to discontinue his premium payments after having made premium payments regularly for at least three years. In such cases, the life cover of the policy remains as is, in spite of the premium payments being discontinued.
Do I receive tax benefits if I invest under this plan?Yes, you will be entitled for Tax benefits u/s 80 c as per Income Tax act,1961 as well as section 10(10) D.
