Shri Vidya Plan
Shri Vidya Plan is a Money Back Child Plan. This is a Traditional Plan with Bonus facility. In this plan the life of the parent is insured and designed in such a way so as to take care of the child’s educational expenses under all circumstances as planned by the parent.
In this plan, the premium needs to be paid till the end of the Policy Term. 25% of the Sum Assured is paid in the last 4 years of the policy along with Bonus as Maturity Benefit when the policy tenure ends.
However, if the parent dies within the policy tenure, the entire Sum Assured +vested Bonus is paid as immediate benefit but the Guaranteed Maturity Benefit is paid either ways. Further 1% of the sum Assured will be payable monthly to the nominee till the end of the policy term to take care of regular school expenses and likewise.
Bonus would be paid at the policy maturity or on earlier death of the Life Insured.
Key Features
- Entire Sum Assured + vested Bonus is paid as Immediate Death Benefit
- 1% of the sum Assured will be payable monthly to the nominee till the end of the policy term
- Maturity Benefit is also paid as per schedule
There is 1 additional rider available in this policy
Accidental Death Benefit Rider
Benefits
In case of death of the Life Insured, i.e. the parent, the entire Sum Assured + vested Bonus is paid for immediate expenses; and the policy continues such that the Survival Benefits are either ways paid. Further, 1% of the sum Assured will be payable monthly to the nominee till the end of the policy term to take care of immediate expenses.
Is provided as below:
Years before Maturity | % of Payout |
3 years before Maturity | 25% of Sum Assured |
2 years before Maturity | 25% of Sum Assured |
1 year before Maturity | 25% of Sum Assured |
On maturity the remaining 25% of Sum Assured + vested Bonus(if the Life Insured is alive). Bonus would be paid at the policy maturity or on earlier death of the Life Insured.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
Eligibility
Minimum | Maximum | |
Sum Assured (in Rs.) | 50,000 | No Limit |
Policy Term (in years) | 10 | 20 |
Premium Payment Term (in years) | Equal to Policy Term | |
Entry Age of Policyholder (in years) | 18 | 50 |
Age at Maturity | - | 70 |
Payment modes | Yearly, Half-yearly and Quarterly |
FAQs
The policy will lapse if the premium has not been paid within the grace period and the policy benefits stop. However, the policy can be revived within 5 years from the first unpaid premium due date.
If the premium has not been paid within the grace period, the policy will made 'Paid up' and the Sum Assured will be reduced proportionately and the plan does not accrue any further bonuses.
If premiums for 3 years have been paid up, then surrender of policy is allowed.
Guaranteed Surrender Value = 30% of basic premiums paid – 1st year’s premium and additional premium paid (if any).
There is loan available under this plan. A maximum loan of 90% of the Surrender Value of the policy at the time of availing the loan can be provided.