A Child Education and Marriage Plan is designed to protect the future of the child. A lump sum will be paid back once the policy term comes to an end and upon completion of the policy, the policyholder will also receive the full sum insured as well as any bonuses.
Should the policyholder pass away before the policy ends, the family will receive a specific amount such as Rs 240 per 1000 [for illustration purpose] sum insured each year which will be paid to the child until the policy has ended. Any additional premiums are waived and the policy remains in place with the full sum insured. Once the policy term comes to an end, the child will be given two choice. The first is receiving a lump sum or receiving five equal instalments.
This plan is for those parents who have concerns about caring for the future of their child and so, the term of the plan is designed so that the lump sum benefit is paid when the child reaches an age that is agreed when the policy is taken out. So the plans can be used for kids education and also to support marriages of daughters. The age has to be determined by a milestone in their life whereby they will require financial support. A surrender value will be acquired once the policy has been in place for two consecutive years if there has been no default on the premiums.
© Copyright 2019 MAWAZNA.com - All Rights Reserved