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Insurance Plans For Children-Part II

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By: Payal Jain, In Business & Finance
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Updated: Thursday, May 08, 2008
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Today there are many available and information about a few of the popular ones is as follows:

1. HDFC Standard Life Insurance Unit Linked Young Star Plus II
This unit linked insurance plan provides an outstanding investment opportunity by offering a choice of thoroughly researched and selected investments. You can choose your premium and the investment fund(s) in the proportion you specify. You can also choose from double benefit and triple benefit payment preferences. In case of unfortunate death/critical illness of the policy holder during the policy term, the sum assured will be paid to the beneficiary and for double benefit, the company will continue to pay 100% of the original regular premiums towards the policy while for triple benefit, it will pay 50% of the original regular premiums towards your policy and pay the balance 50% of the premiums to the beneficiary. The compounding effect of these regular additions is expected to boost your final maturity value. The term period of the policy is 10-25 years.

2. Kotak Head start Future Protect
It is a unit-linked dual benefit plan to help secure your children’s future financial needs, Under this plan, a lump sum amount of 100% of the sum assured would be paid out immediately on the life insured's death (on the second death, in case of joint life), to assist in meeting unanticipated  financial  obligations  now  facing your children. At the same time, it provides an additional boost (on death of primary life in case of joint life plan) via a lump sum benefit which reduces over the term of the plan to compensate beneficiaries for the outstanding premiums that would have been payable had the policy-holder survived the full term of the policy. Your planned corpus will thus remain available and be payable by way of equal semi-annual installments for 5 years. You can opt for additional rider benefit payments should accidental death bring on your demise or, unfortunate events. Premium waiver protection is also available on disability. These benefits will be charged by way of additional unit deductions from the fund. The regular annual premium is Rs 15,000 minimum.

3. ICICI Prudential Smart Kid
Smart Kid offers an exclusive choice of 3 education insurance plans: Smart Kid New Unit linked Regular Premium, Smart Kid New Unit-linked Single Premium and Smart Kid Regular Premium. Smart Kid New Unit-linked Regular Premium is a unit-linked plan, which enables you and your child to accumulate wealth by virtue of the performance of the underlying market-linked instrument. Smart Kid New Unit-linked Single Premium works in much the same way as Smart Kid New Unit-linked Regular Premium policy mentioned above. The only different feature is the premium amount - you will be required to pay only a single premium, which starts at as low as Rs. 50,000. The tenure of the plan will be calculated as the difference between your child’s current age and his or her age at which the policy matures. The premium will be calculated based on 3 factors: Sum Assured, policy tenure and your age. As your child approaches key educational milestones such as 12th standard or graduation exams, he or she will receive regular payouts, guaranteeing he or she continues to study, no matter what the circumstance.

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