In case of an unfortunate event, your family gets a guaranteed pay out immediately which will be highest of following:
- 10 times the annual premium
- 105% of the premiums paid.
- Sum Assured
In this plan all the future premiums are waived off in case of an unfortunate event and policy continues till maturity. This takes away the burden of the premium payment from your family.
Whatever amount you plan for fulfilling your child’s dreams, you are guaranteed of that amount as sum assured on policy maturity. The sum assured is paid tax free without any deductions.
You save tax on premiums paid under section 80C and on benefit amounts under section 10(10D) of the Income Tax Act.
You have two flexible options to receive the sum assured on maturity:
Option A – In 5 Periodic Payouts
In this option, sum assured is paid in 5 installments spread over last 5 years till the policy maturity, as shown in the illustration below. This ensures a spread out payouts over years towards fulfillment of your child’s dreams.
Option B – Lump sum Payment: You can opt to receive the maturity benefit as a lump sum at the end of the policy term. With this option, you get 5% extra payout i.e. 105% of the Sum Assured is paid on maturity.