ING Creating Star Guaranteed Future Plan is a Child Endowment policy. This is a Limited Premium Traditional Plan without Bonus Facility. In this plan, the Parent is the Primary Life Insured and the Child is the secondary Life Insured.
How it works – In this plan premium needs to be paid for 10 to 20 years as selected at the policy inception. The Policy Term continues for another 5 years after completion of the Premium Paying Term. The Policy continues for another 30 years called the Extended Policy Term after the Policy Term is over.
Thus, the total Coverage Term of the policy includes the Policy Term where both the parent and the child are insured and the Extended Policy Term where only the child’s life insured.
At the end of the Policy Tenure, the Guaranteed Maturity Benefit is paid to the Life Insured according to the option selected. There is a choice of:
Since the parent is the Primary Life Insured, there is a Death Benefit of 50% of the Guaranteed Maturity Benefit on his life during the policy term. The child, being the Secondary Life Insured, also has a Death Benefit on his life, which is 2.5% of the Guaranteed Maturity Benefit + the Surrender Value (if applicable).
After the Policy Term is over, i.e. after the Guaranteed Maturity Benefit has been paid out, there is an Extended Policy Term of 30 years where the Death Benefit continues on the child’s life for 50% of the Guaranteed Maturity Benefit.
Death Benefit – There are many variants for Death Benefit under this plan:
In case of death during the Policy Term:
Maturity Benefit – At the maturity of the policy, the insured will get Guaranteed Maturity Benefit according to the option selected. There are 2 options:
Education and Marriage Payout Option where 5% of the Guaranteed Maturity Benefit is paid out in the 4 Policy Years before the Policy Maturity Date and the balance 80% of the Guaranteed Maturity Benefit is paid when the Policy Term is over.
Marriage Payout Option where the Guaranteed Maturity Benefit is paid out in a lumpsum on the policy maturity.
Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)
|
Minimum |
Maximum |
Sum Assured (in Rs.) |
6,00,000 |
No Limit |
Policy Term (in years) |
PPT + 5 Years |
|
Premium Payment Term (in years) |
10 |
20 |
Entry Age of Parent (in years) |
20 |
55 |
Entry Age of Child (in years) |
3 |
15 |
Age at Maturity (in years) |
- |
70 |
Payment modes |
Yearly, Half-yearly, Quarterly or Monthly |
The below illustration is for a healthy Male (non-tobacco user) opting for a Guaranteed Maturity Benefit = Rs. 1,00,000 and Policy Term = 20 years.
Riders- There are no Additional Riders available with this plan
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You stop paying the premium – If you stop paying the premiums after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured and the policy is converted to a reduced Paid Up Value.
The Policy can however be reinstated within 5 years from the date of first unpaid premium.
You want to surrender the policy – You can surrender your plan after 3 full years’ premiums have been paid.
You want a loan against your policy – Loan facility is available under this policy after 3 policy years