Child Future Insurance Policy: This policy gives risk coverage on the life of a child not only within the policy term but within the extended term of 7 years after maturity as well. The survival benefit under child future insurance policy is 25% and 10% of sum assured is payable to insured. Maturity benefit under this insurance policy is half of the S.A. amount along with bonus and final addition bonus (if any). There is an additional rider of premium waiver benefit under this policy.
Parameters of the child future insurance policy
|Entry age||Minimum 0 years (LBD) and maximum 12 years (LBD)|
|Maturity age||Minimum 23 years (LBD) and a maximum of 27 years (LBD)|
|S.A. amount||Minimum 11 Lacs and maximum 1 Crore|
|S.A. in multiples||Rs. 5,000|
|Policy term||5 years|
|Assignment||No by the proposer but yes after the policy has vested in life assured|
Underwriter Condition of the Child future insurance policy
|Age proof for 5 years and above||School certificate|
|Age proof for age less than 5 years||Certificate from municipal/local village panchayat records|
|Actual S.A. amount||Basic S.A.|
|Dating back @ 8% p.a.||Allowed|
Auto coverage under the policy
If a policyholder has paid two years full premiums but not duly paid premiums for subsequent years then the complete death cover will continue for two years from the due date of the first unpaid premium. The PWB w(if any) will be in continuation within the auto coverage period.
Child Future Insurance Policy Benefits
Death benefit od the policy
- If the insured dies within the time period of the date of risk commencement to 5 years before the policy expires then the nominee will get S.A. amount along with vested simple reversionary bonuses and FAB (if any).
- If the insured dies within 5 years before the policy expires then the nominee will get S.A. amount along with FAB (if any).
- If the insured dies within the extended policy term then the nominee will get S.A. amount.
- If the insured dies before the commencement of risk then all the premium will be paid to the nominee (excluding extra premium and PWB, if any) along with 3% interest p.a. compounding yearly.
- If the insured dies during the auto coverage period then the benefit will be paid to the nominee after deducting unpaid premiums with interest along with due premiums before the next bonus (if any).
Survival benefit of the policy
Survival benefit will be paid to the insured as mentioned below :
- 5 years before the policy expires – 25% of the sum assured.
- 4 years before the policy expires – 10 % of the sum assured.
- 3 years before the policy expires – 10% of sum assured
- 2 years before the policy expires – 10% of sum assured
- 1 year before the policy expires – 10% of sum assured
- When the policy expires – 50% of sum assured plus vested simple reversionary bonus and FAB (if any).
Premium waiver benefit of the policy
FWB is available under this policy on payment of additional premium during the premium payment term or till the insured dies, as per the situation.
- The premium falling dues will be waived after the policyholder’s death.
- The premium benefit will remain in continuation during the auto coverage premium period waiver benefit.
- The PWB as stated above will be granted on the basis of policyholder’s age, personal health conditions, and other necessities. In case any of the provided information is found incorrect, the entire clime to benefit will be ceased.
- In the event of the insured by his/her own hands whether sane or insane during one year from the issuance of FPR, the FWB described above will not be operated.
Cooling-off period for the policy
The cooling-off period under child future insurance policy is of 15 days.