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Product Summary:
This is an Endowment Assurance plan designed to enable a parent or a legal guardian or any near relative of the child (called proposer) to provide insurance cover on the life of the child (called life assured). The plan has two stages, one covering the period from the date of commencement of policy to the Deferred Date (called deferment period) and the other covering the period from the Deferred Date to the date of maturity. The insurance cover on the child’s life starts from the Deferred Date and is available during the latter period.

The Deferred Date in case of Plan No 41 is the policy anniversary date coinciding with or next following the date on which the child completes 21 years of age. In case of Plan No 50 it is the policy anniversary date coinciding with or next following the 18th birthday of the child.

Premiums:
Premiums are payable yearly, half-yearly, quarterly or monthly and this shall cease on the death of the life assured . Premiums are waived on death of Proposer provided this benefit is availed.

Bonuses:
This is a with-profits plan and participates in the profits of the Corporation’s life insurance business after the deferred date. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan.
Death Benefit:
The Sum Assured along with vested bonuses is payable in a lump sum upon the death of the life assured after the deferrement period. If death occurs before the deferrement period all premiums paid is refunded.

Maturity Benefit:
Sum assured along with all bonuses declared up to maturity date is payable in lump sum.

Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.

Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender values are available on the plan on earlier termination of the contract.

Guaranteed Surrender Value:
The policy may be surrendered after it has been in force for 3 years or more. The minimum surrender value allowable under this policy is as under:

(a) Before the Deferred date : 90% of the premiums paid excluding the premium for the first year.

(b) After the Deferred date:

(i) If deferment period is less than 10 years:

90% of the premiums paid before the deferment date excluding the premiums for the first year plus 30% of premiums paid after the deferred date.

(ii) If deferment period is 10 years or more:

90% of a cash option plus 30% of premiums paid after the deferred date.

Corporation’s Policy On Surrenders:
In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender is the discounted value of the reduced claim amount that would be payable at death or maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender.

The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors.