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Survival Benefit
You will receive the Guaranteed Annual payouts at the end of each of the last 4 policy years before the maturity year provided that all due premiums are paid. You can utilize these guaranteed payouts to fund the future education needs of your child. The amount of annual payouts will be as per below table.
At the end of Policy Year
Payout as % of Sum Assured
Policy Term minus 4
20%
Policy Term minus 3
20%
Policy Term minus 2
20%
Policy Term minus 1
20%
Maturity Benefit
On your survival till maturity, You will receive Guaranteed Sum Assured on maturity equal to 20% of Sum Assured along with Annual bonuses and Final bonus, if any.
Death Benefit
In case of unfortunate demise of Life Assured during the policy term, provided the policy is in-force, following benefits will be payable:
Immediate lump sum benefit, higher of :
- Sum Assured
- 10 times the Annualized Premium,
- 105% of {the Total Premiums Paid till the date of death less underwriting extra premium, if any}.
- In addition to the above, all future premiums (if any) need not be paid and the policy shall continue to be in force for the remaining Policy Term. The policy will also continue to accrue Annual bonuses.
Guaranteed Annual Payouts
All Guaranteed Annual Payouts as scheduled will continue to be payable at the end of each of the last 4 policy years before the maturity year.
Guaranteed Sum Assured on maturity
This benefit will be equal to 20% & will be paid on maturity.
Bonuses
Accrued Annual bonuses along with Final bonus, if any, will also be payable on maturity.
Other Benefits
Rebate: This plan offers rebate on the premium payable, if Sum Assured is higher than or equal to Rs 4,00,000.
Loans: You can avail of the loan facility to meet your liquidity needs, once the policy acquires a surrender value.
Tax Benefits#
You can avail tax benefit on the premium paid subject to current applicable provisions of Section 80C of income Tax Act, 1961.
#Tax benefits under the policy will be as per the prevailing Income Tax laws and are subject to amendments from time to time. For tax related queries, contact your independent tax advisor.Mr. Gupta is a 35 year old businessman with a 4 year old son named Yash. He wants to secure his son's future through planned savings for his education milestones. He also wants to ensure that his plans (funding for education) are not impacted even if he is not there tomorrow. Mr. Gupta therefore takes a wise decision to save through our Smart Junior Plan.
To fulfill future education milestone, Mr. Gupta estimates that he requires a guaranteed benefit of at least ₹ 200,000 every year for four years when Yash turns 18 and additional lump sum amount at age 22 to plan for Yash's higher education/ professional course. Therefore he opts for a policy term of 18 years and takes a Sum Assured of ₹ 1,000,000 with premium paying term of 10 years and yearly premium payment mode. The premium he has to pay annually for 10 years is ₹ 101,400 (before applicable taxes and cess(es)).
Below are two scenarios illustrating benefits which will be payable under each of them.
Scenario 1: Survival and Maturity Benefit
Mr. Gupta will get a guaranteed payout of ₹ 200,000 every year in last four policy years before the maturity year (subject to all premiums being paid as and when due) which is from end of policy year 14 till policy year 17. On maturity , Mr. Gupta will receive an amount of ₹ 200,000 as Guaranteed Sum Assured on maturity along with accrued Annual bonuses and Final bonus, if any, as illustrated below.
Mr. Gupta can utilize the Guaranteed Annual Payouts and Guaranteed Sum Assured on maturity along with accrued Annual bonuses including Final bonus, if any, on maturity in the following way:
On Yash's Age
Guaranteed Annual Payouts (20% of Sum Assured)
Payout can be utilized for Yash's education as follows
18
₹ 2,00,000
Support for 1st year Engineering Fee
19
₹ 2,00,000
Support for 2nd year Engineering Fee
20
₹ 2,00,000
Support for 3rd year Engineering Fee
21
₹ 2,00,000
Support for 4th year Engineering Fee
On Yash's Age
Maturity Benefit
Payout can be utilized for Yash's education as follows
(Yash's at age 22)
₹ 2,00,000 (Guaranteed Sum Assured on maturity) plus Accrued Annual bonuses including Final bonus, if any
Higher Education/Professional Course
Your actual premium will depend on the Company's assessment of risks on your health, lifestyle, occupation, etc. Annualized premium may vary for monthly mode. For a personalized quote please refer to the premium calculator.
Scenario 2: Death Benefitss
Case of unfortunate death of Mr. Gupta in 3rd policy year after payment of 3 years premiums, his family will receive the following benefits:
Mr. Gupta's family will immediately get lump sum amount of ₹ 1,014,000 which is higher of {Sum Assured or 10 times the Annualized Premium or 105% of Total Premiums Paid till date of death less underwriting extra premium paid, if any}
In addition, all future premiums, if any, need not be paid and Guaranteed Annual Payouts of ₹ 200,000 will be payable as scheduled in the last 4 policy years before the maturity year. Annual bonuses will continue to accrue for the rest of policy term, as applicable.
Guaranteed Sum Assured on maturity equal to ₹ 200,000 along with accrued Annual bonuses and Final bonus, if any, will be payable on maturity.
All of above benefits ensure that Yash's immediate and intermediate education needs are met through the lump sum benefit paid on death. Furthermore, Guaranteed Annual Payouts will be paid as scheduled starting from when Yash turns 18. Also, on maturity, Guaranteed Sum Assured on maturity of ₹ 200,000 along with accrued Annual bonuses & Final bonus, if any, will be payable.
GUIDE : How To Choose Policy Term Basis Your Child's Age
Below the indicative guide which you can use to decide on the Policy Term basis your child's age so as to ensure that money is available at different educational milestones.
Child Age (years)
Suitable Policy Term
Premium Payment Term available (years)
Start of Guaranteed Annual Payouts (from : to, child age)
Payment of Guaranteed Sum Assured on maturity along with accrued Annual bonuses and Final bonus, if any, on child age
2
20 years
5,10,12
18 to 21 years
22 years
4
18 years
10
18 to 21 years
22 years
5
17 years
9
18 to 21 years
22 years
8
14 years
6
18 to 21 years
22 years
7
15 years
5,7
18 to 21 years
22 years
10
12 years
5
18 to 21 years
22 years
Entry Age
Minimum
18 years
Maximum
50 years
(In case of monthly mode, maximum entry age is 40 years)Maximum Maturity Age
70 years
12 to 25 years
Minimum Sum Assured
Annual Mode: ₹ 3,00,000
Monthly Mode: ₹ 5,00,000
Maximum Sum Assured
No limit (Subject to Board Approved Underwriting Policy (BAUP) of the Company
Premium Payment Mode & Modal Factors
Annual and Monthly mode
For monthly mode, the annual premium needs to be multiplied with a factor of 0.09 to arrive at the monthly installment premium payable
Premium Payment Term
The premium payment term will depend upon the chosen policy term & will be as per following table.
Premium Payment Term (in years)
Policy Term (in years)
Policy Term minus 8 years
13 to 25(pick a term option)
5
12,15,20
10
19 to 25 (pick a term option)
Minimum Premium
Depends on factors such as age, sum assured, etc
Maximum Premium
No limit, will be subject to BAUP of the company
