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How
does the Plan work?
The Plan is designed to generate funds to meet your child's
College Fees on payment of regular premium.
We will need the following information to quote the premium:
Years
to college |
Term in college |
Annual college Fee |
Your present age |
You
will have to investigate the current level of college fees
and apply inflation factor to estimate the annual college
fee at the time your child is to enter college.The premiums
will be payable from the date you buy the policy until your
child enters college. This period can vary from 10 years to
25 years. At the end of this period, the annual college fee
payments will commence and continue during the term in college.
What if I die before
completing the premium paying period?
The plan has an in-built
insurance protection that guarantees payment of all the due
premiums from the date of death or disability of the payer
(God forbid). This means your child's college fees will be
paid by ALICO even if you are not there.
Can ALICO arrange a monthly income for my child following my
death or disability during the premium paying period?
Yes of course. We offer
optional Income Benefit Rider (for additional premium) IBR pays
a monthly income from the date of death/ disability until the
end of the IBR term the amount of monthly income is decided
by you.
Do
I have to submit any evidence of good health, undergo medical
exams to buy this Plan?
Yes Evidence of good health or medical
exams will be required . The extent of medical exams and test
will depend on your age the amount of college fee, the premium
paying period (i.e., the period from now until the commencement
date of the college) and the amount of monthly income benefit
elected.
What
happens to the premiums I pay?
The premiums you pay
each year (less premium related expenses) will be credited to
your individual account to be invested in secure investments
like Governmenst securities, Bonds of reputable corporations
and so on.
Every
month deductions will be made from your account for management
charges, cost of insurance, if any, and credited with investment
earnings.
This process will continue during your chosen premium paying
period and the college term.
Will
my account continue to grow even if I stop Premium payments?
If you stop premium
payment the monthly deduction for expenses and cost of insurance
in any case will continue to be made from the account value.
Your policy will lapse if the account value becomes insufficient
to cover the monthly deductions. As such it is advisable to
continue premium payment under the policy for the full premium
paying term, i.e., until your child enters the college.
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