Scholars plan

Scholar's Insurance Plan

 

As a parent, your child’s future and ability to fulfill your child’s dreams and aspirations is always your prime concern.

Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing rapidly. Just imagine how much you will need when your child takes these important steps in life!

Therefore, it is important that you PLAN today to ensure a bright future for your child. Start building your savings today with our Scholar’s Plan so that your child is able to lead a successful life with a secured financial future.

Askari Life’s Scholar’s Plan gives you:

  • Invaluable financial support to your child
  • A choice to customize an ideal plan for your child
  • Multiple options for multiple benefits.

Our Scholar’s Plan is designed to secure your child’s future by giving your child (the beneficiary) a lump sum amount on maturity or in case of the payer’s unfortunate demise early in the policy term. The premiums paid by you (less expenses and mortality charges) are invested by the company to provide excellent long-term returns.

Life has innumerable surprises in store for us. Parenthood is wonderful and it is such a stage, when you experience various emotions never thought possible. At the same time, parenthood also brings its own set of apprehensions and worries. What will your child grow up to be in the future? Will his/her future be as secure as you want it to be? Or more importantly, what can you do to make certain that his/her future is hassle–free and secure? Don’t Worry! Now, by planning ahead, you have the ability to answer these questions to your contentment.

Askari Life’s Scholar’s Plan is especially designed to enable you to provide for higher education of your child and take care of your future needs in these times of spiraling costs.

This universal life child protection policy can be purchased on the life of the father or mother (i.e. the “Payer” of the policy), to provide for marriage and/or education of their child. The payer can also be a grandparent, brother, sister, real uncle or aunt of the child. This plan provides for the financial well-being of the child while offering cash value growth potential.

Supplementary Riders
The following supplementary riders can be attached to the policy:

Policy Maturity or Earlier Withdrawal

If the policy matures or 100% of the cash value is withdrawn at an earlier age, the policyholder will have to choose one of the following options to receive their accumulated amount:

  • Single Lump Sum
  • Life Long Pension
  • Combination of Lump Sum Payment and Life Long Pension
Account Value

The premium paid each year less any related expenses will be credited to your account. Cost of insurance, charges for management expenses and premium for any rider attached to your basic policy will be deducted. The amount in your account will be invested in secured investments. Your account will be credited with your share of investment income earned on the invested assets.

It should be noted here that the rate of increase in your account value is subject to the amount and timing of your premium payment and the investment income earned by the Company on the invested assets. After you have paid 5 or more years’ premiums, you can withdraw 100% of your account value and terminate the Policy.

Automatic Non-Forfeiture

If a premium has remained unpaid beyond the grace period, we will keep the policy in force to the end of the current policy year. Mortality and expense charges will continue to be deducted from the account value. Also the investment income will be credited to the account. The policy will lapse only if the net cash surrender value at the end of the previous Policy Year is not enough to cover necessary mortality and expense charges for the current policy year. Therefore, it is advisable to pay premium as they fall due.

Policyholder’s Loans

After two policy years have been completed and provided at least two full policy years’ premium have been paid, withdrawals can be made from the account value to meet urgent cash needs. Outstanding amounts due to us for loans given shall be deducted from any death benefit.

Cash Surrender Value

After two policy years have been completed, and provided at least two full policy years' premiums have been paid under the policy, you may terminate the policy and ask us to pay you the following percentages of your account value, less any loan outstanding.

Number of Annual Premiums PaidPercentage of Account Value
10%
275%
380%
485%
5100%

After you have paid 5 or more years’ premiums, you can withdraw 100% of your account value less any loan outstanding, and terminate the Policy.

Partial Termination

Instead of terminating the whole policy, you can terminate part of it. The policy will continue for the remaining proportion, all benefits and premiums being proportionately reduced.

Benefits Payable on Death of Life Insured
  • God Forbid, if Child dies before the maturity date and during the life time of the payer, the payer must select one of the following two options:
    • Substitute the deceased child with another child related to the payer or to the spouse, or
    • Receive proportional payment of the Death Benefit, depending on the age nearest to the birthday at time of the child’s death, according to the following table, thus terminating the policy:

      Child age nearest birthday at deathAmount Payable being the Following
      Percentage of Sum Insured or Net Cash Value
      (Whichever is Higher)
      1 year or less10 percent
      2 years20 percent
      3 years30 percent
      4 years40 percent
      5 years50 percent
      6 years60 percent
      7 years70 percent
      8 years80 percent
      9 years90 percent
      10 years100 percent

       

       

       

  • God Forbid, if the Payer dies before the maturity date and during the lifetime of the Child, the premiums shall cease and the following benefits shall be payable:
    • The Sum Insured or the Net Cash Value (whichever is higher) shall be payable on the maturity date of the policy. Sum Insured here means the sum insured at the time of death of the payer.
    • 10% of initial sum insured (i.e. sum insured at policy issue) will be paid per year to the child from the date of death of adult life (God forbid) to the maturity date in monthly installments. The first monthly payment shall fall due on the first day of the calendar month immediately after the date of death. The last monthly payment shall fall due on the first day of the calendar month immediately before the maturity date or when the Payer would have turned 70.
Benefits Payable on Maturity of the Policy

On survival of the both lives insured, i.e. the Payer and the child, up to the maturity date, the Net Cash Value shall be payable. The Net Cash Value will be the Mathematical Reserve of the policy calculated LESS outstanding amounts due to us for loans given (if any).

Pension from an Age of Your Choice

If the policy matures, or if you withdraw 100% at an earlier age, you will have the option to take a pension from an age of your choice in lieu of the lump sum money. The rate of pension will be decided at the time of maturity according to the financial and other conditions ruling at that time. At the chosen maturity date you can elect to take a portion of your net cash surrender value in lump sum and apply the rest towards pension.
Minimum age at entry

18 years

Maximum age at entry

60 years

Minimum Term

10 years

Maximum Term

25 years or upto the age of 70 years, whichever is earlier