ING Aashirvad Plan

ING Life Aashirvad Plan

ING Aashirvad Plan is Traditional Non-Participating Regular Premium Child Plan. In this plan, both the parent and the child’s life are insured together during the policy tenure. In this plan, if the parent dies before the policy matures, 50% of the Sum Assured called the Guaranteed Maturity Benefit is paid, the future premiums are paid by the insurer and the policy continues such that the Maturity Benefit is provided to the child according to the option selected at inception. However, if the child dies, then a small amount of only 2.5% of the Sum Assured + Surrender Value (if any) is paid and the policy is terminated. However, the most unique feature of this policy is that the life cover of the child continues for another 30 years post maturity of the policy.

Key Features of ING Aashirvad Plan

·         Both the child and the parent can be covered jointly under this plan.

·         In this plan there are Guaranteed Benefits on maturity and death

·         There are 2 options provided for Maturity Benefit- in Instalments or in a Lumpsum

·         Life cover can be continued till the child reaches 70 years of age even after the policy matures

·         Entry age for the child starts at birth

·         The coverage for this policy can be enhanced by opting for 2 additional riders.

Benefits you get from ING Aashirvad Plan

Death Benefit –

·         Before the Policy Maturity Date

o    If the Parent dies before the Policy Matures- 50% of Sum Assured is paid out immediately. The future premiums are waived and paid by the insurer such that the Maturity Benefit is provided to the child according to the option selected.

o    If the Child dies before the Policy Matures- 2.5% of the Sum Assured is paid + Surrender Value (if any) and the policy is terminated.

·         After the Policy Maturity Date

o    If the Parent dies after the Policy Matures- There is no Death Benefit applicable

o    If the Child dies after the Policy Matures- 50% of the Sum Assured is paid and the policy is terminated

Maturity Benefit – There are 2 Options for selecting Maturity Benefit

·         Option 1: The Maturity Benefit is given in instalments

o    4 years before the Policy Matures- 7.5% of the Sum Assured is paid

o    3 years before the Policy Matures – 7.5% of the Sum Assured is paid

o    2 years before the Policy Matures - 10% of the Sum Assured is paid

o    1 year before the Policy Matures - 10% of the Sum Assured is paid

o    On Policy Maturity – 65% of the remaining Sum Assured is paid

·         Option 2: The Maturity Benefit is provided in Lump Sum on Policy Maturity Date. There is also a guaranteed addition of 5% of the Sum Assured payable on the maturity date under this option.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C

Eligibility conditions and other restrictions in ING Aashirvad Plan

Sample illustration of premium in ING Aashirvad Plan

Premium Paying Term (PPT) = 15 years, Hence Policy Term= PPT + 5 = 20 years

Guaranteed Maturity Benefit (GMB) or Sum Assured = Rs 5,00,000

Age of Child = 1 year

Additional Features and Benefits of ING Aashirvad Plan

Riders – There are 2 riders available in this policy

·         Accidental Death Benefit (ADB)

·         Accidental Death, Disability and Dismemberment Benefit (ADDD Benefit) riders.

There is 1 inbuilt rider available in this policy: Premium Waiver Benefit rider

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What happens if?

You stop paying the premium - If the policy holder stops paying the premium, the insurance cover will cease and the policy will lapse. However, if premiums for 3 policy years have been paid, and no further due premiums are paid, then the Policy will be eligible for a Paid-up Value. However, a lapsed policy can be revived within 5 years from the date of the first unpaid premium.

You want to surrender the policy – If all due premiums have been paid for 3 policy years, the policy would acquire a Guaranteed Surrender Value.

The Guaranteed Surrender Value = 30% of the Total Premiums paid – 1^st Premium paid and extra Premium paid

You want a loan against your policy – There is a loan facility available in this plan which can be availed under this policy after three full years premiums have been paid.