Child plans, in simple terms, are insurance policies that help take care of any future needs related to a child, including education and wedding. These plans come with the dual benefit of investment and insurance, and generally provide payouts that is at least 10 times the total premium paid during the policy period. Such plans are best for individuals who want to save for their children but are averse to investing in the equity market directly.
Child Plans offered by Aegon Life:
At present, Aegon Life, a partnership between Europe-based Aegon NV and The Times Group, offers just one child plan called the Rising Star Insurance Plan. This is a market-linked insurance policy that allows you to save money for your child’s future, whether it is for education or for important milestones such as first vehicle or wedding. The death benefit is equal to 105% of premiums paid or sum assured, whichever is greater, and maturity benefit would be the fund value. The noteworthy details of this plan are:
Entry age: For parents – 18 to 48 years; for children – 1 day in case the parent is less than or equal to 40 years old, 5 years if the parent is 41 to less than 45 years old, and 10 years in case the parent is 45 to 48 years old.
Age at policy maturity: 65 years
Policy tenure: 25 years minus the entry age of child
Premium payment: Regular Pay – throughout the policy term
Minimum premium amount: Rs.20,000 in a year in case of annual premium payment, Rs.30,000 in a year in case of semi-annual or monthly payments.
Minimum sum assured: Depends on your age, policy term and annualised premium amount
Premium payment frequency: Monthly, half-yearly and yearly
Riders available: None
Benefits of Aegon Life Child Plans:
- Child-centric policies help you save money for the future of your child and also gives you – the parent – a life insurance cover.
- The policies are easy to understand, easy to apply for and require little maintenance.
- Since this is a unit-linked plan, the savings grow at a fast rate and help in wealth creation for your child’s future financial needs.
- You can select a premium amount that you can afford. You can make premium payments as per your convenience – monthly, half-yearly or annually.
- You can withdraw a portion of the policy value for emergency needs without needing to surrender the policy or take personal loans.
- You can discontinue a policy without heavy penalties.
- You can take a secured loan against these policies from banks and non-banking financial companies.
- You can save tax on both premium payments and the maturity/death payout under Section 80C and Section 10(10D) of the Income Tax Act.
- With a claim settlement ratio of over 95%, you can rest assured that Aegon Life will fulfil the commitments made to you.