Max New York Life Shiksha Plus

Max New York Life Shiksha Plus is a Unit Linked Insurance Plan for the benefit of the child. In fact it is a non-traditional child plan such that the life of the parent is insured.

In this plan, if the parent dies within the policy tenure, 110% of the Sum Assured is paid as Immediate Family Support and the premiums are waived off but continued by the insurance company and every year 10% of the Sum Assured is paid as School Fees Support till 100% of the Sum Assured is paid.

However, on maturity, the entire Fund Value is paid as Maturity Benefit even if Death Benefit has been paid before.

• This is a Unit Linked Insurance Plan where the life of the parent is insured for the benefit of the child’s future.
• This is a plan with triple death benefit such that double the Sum Assured is paid as Death Benefit and Maturity Benefit, whenever due would be paid by the insurer.
• Fund Value is paid on Maturity as Maturity Benefit.
• In case of death, all future Premiums are paid by the Insurance Company so that maturity benefit is paid whenever due.
• In case of death, 110% of base Sum Assured is paid out immediately on death and thereafter 10% of the sum assured at every policy anniversary to subject to a maximum of 100% of base Sum Assured but not beyond the original term of the policy.
• There is an option of Dynamic Fund Allocation where investment is done according to age
• There is an option called Systematic Transfer Plan to avoid market fluctuations. 

Death Benefit – In case of death of the Life Insured, i.e. the parent, 110% of the Sum assured is paid as Immediate Family Support and the future premiums are waived off but paid by the insurer. Thereafter, on every policy anniversary, 10% of the Sum Assured is paid to support school fees of the child subject to a maximum of 100% of base Sum Assured but not beyond the original term of the policy. The policy continues to pay the Maturity Benefit whenever due.

Maturity Benefit – On maturity the Fund Value is paid as Maturity Benefit even if the Death Benefit has been paid.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C

Age of Parent= 30 and 35 years respectively

Policy/Premium Paying Term= 5 pay/10 years

Riders –There are 2 additional riders available in this policy

1.     Dread Disease Rider with maximum Sum Assured of Rs. 10 Lakhs

2.     Personal Accidental Benefit Rider with maximum Sum Assured of Rs. 40 Lakhs

Investment Fund Options

There are 7 Investment Funds available

1.     Growth Fund

2.     Growth Super Fund

3.     Balanced Fund

4.     Conservative Fund

5.     Money Market Fund

6.     Secure Fund

7.     Secure Plus Fund

And 2 Investment Options available

1.     Systematic Transfer Plan

2.     Dynamic Fund Allocation

Top-up - The minimum Top-up amount is Rs 5,000. Top Up can be done anytime except during the last 5 years of the Policy Term and each Top-up Premium also has a Lock In Period of 5 years. Top-Up Premium will have a Sum Assured of 1.25 times the Top-Up Premium paid.

Switching - The minimum amount that you can switch is Rs 5,000.

Partial Withdrawal - Partial withdrawals are allowed only after completion of 5 policy years. The maximum amount of Partial Withdrawal allowed is 20% of the existing Fund Value subject to the fund value immediately after partial withdrawal being at least equal to 1.5 times annual premium.

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee. It can also be revived.

You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.

You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.

If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.

You want a loan against your policy - There is no loan available under this plan.

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