ING Creating Star Guaranteed Future Plan

ING Creating Star Guaranteed Future Insurance Plan

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:

• 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.

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.

Key Features of ING Creating Star Guaranteed Future Insurance Policy 

• This is a Limited Period Child Endowment Policy without Bonus facility
• There is a three-fold Death Benefit if the parent dies within the Policy Term
  • 50% of the Guaranteed Maturity Benefit would be paid out immediately
  • 10% of the Guaranteed Maturity Benefit would be paid out for the next 5 years
  • All future premiums would be waived, and
  • The Guaranteed Maturity Benefit would again be paid on policy maturity
• The Guaranteed Maturity Benefit is paid when the Policy matures either in a Lumpsum or in a staggered form in the last 4 policy years, as selected.
• There are 2 options for receiving the Maturity Benefit- Educational and Marriage Payout Option or only Marriage Payout Option.
• Both the Child and the Parent is insured under 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 after the Policy Term is over.
• In this plan, the Parent is the Primary Life Insured and the Child is the secondary Life Insured.
• This plan provides for additional discount on your premium rates for higher Guaranteed Maturity Benefits

Benefits you get from ING Creating Star Guaranteed Future Insurance Plan

Death Benefit – There are many variants for Death Benefit under this plan:

In case of death during the Policy Term:

• Of the Parent, i.e. the Primary Life Insured, then the Death Benefit will be paid in 2 parts. 50% of the Guaranteed Maturity Benefit would be paid out as a lumpsum as Immediate Death Benefit and 10% of the Guaranteed Maturity Benefit would be payable each year for the next 5 years to take care of regular expenses of the child. The future premiums shall be waived and the policy continues for the Guaranteed Maturity Benefits as selected at the policy Inception.
• Of the Child, i.e. the Secondary Life Insured, then 2.5% of the Guaranteed Maturity Benefit would be paid out as Death Benefit along with the Surrender Value of the Policy and the policy would be terminated.

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)

Eligibility in ING Creating Star Guaranteed Future Insurance Policy 

Sample illustration of premium amount in ING Creating Star Guaranteed Future Plan

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.

Additional Features and Benefits of ING Creating Star Guaranteed Future Plan 

Riders- There are no Additional Riders available with this plan

What happens if?

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