Generali Central Assured Education Plan

What is the Generali Central Assured Education Plan?

The Generali Central Assured Education Plan is a savings-oriented life insurance policy designed to empower parents to systematically save for their child’s higher education, such as college fees or starting a business.

It works by allowing parents to choose a specific policy term based on their child's current age and future educational needs. Policyholders can select from three tailored payout options (Option A, B, or C) to receive guaranteed maturity benefits at crucial educational milestones. Furthermore, this investment plan provides robust financial protection; if the parent (life assured) passes away during the policy term, Generali Central Life Insurance steps in to waive all future premiums, provide immediate funds to the family, pay an annual allowance to cover ongoing education fees, and still pay out the original maturity benefits as planned.

Features of Generali Central Assured Education Plan

Below are the features of Generali Central investment plans: 

• Guaranteed Payouts: All maturity and survival payouts provided under the plan are 100% guaranteed, ensuring that educational funds are available exactly when needed.
• Three Payout Options: You have the flexibility to choose how you want to receive the maturity benefits (Option A, B, or C) based on whether the funds are needed for graduation, post-graduation, or as a single lump sum.
• Uninterrupted Education Protection: In the event of the life assured's death, the policy continues. All future premiums are waived, ensuring the child's educational goals are not compromised.
• High Sum Assured Discount: Generali Central Life Insurance offers a discount on premiums for policyholders opting for higher Sum Assured amounts (ranging from ₹4 lakhs to ₹12 lakhs and above).
• Tax Benefits: Premiums paid and benefits received are eligible for tax exemptions under Sections 80C and 10(10D) of the prevailing Income Tax laws.

Eligibility Criteria for Generali Central Assured Education Plan

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Benefits of Generali Central Assured Education Plan

• Death Benefit: In the unfortunate event of the life assured's (parent's) death during the policy term, Generali Central Life Insurance ensures the child's future remains protected through multiple payouts:
  • Immediate Death Payout: A Guaranteed Death Sum Assured is paid immediately to the nominee. This is calculated as the highest of 10 times the annualized premium, 105% of total premiums paid, the Maturity Sum Assured, or the Absolute amount payable on death (which equals the Sum Assured).
  • Waiver of Premium: All future premiums payable under the policy are waived off by the company.
  • Regular Income: 5% of the Sum Assured is paid immediately and on every death anniversary of the life assured during the policy term to fund regular school or college fees.
  • Maturity Continuation: The original Maturity Benefit (100% of Sum Assured) is paid to the child as per the payout option chosen at inception.
• Maturity Benefit: Upon survival of the life assured till the end of the policy term, 100% of the Sum Assured is paid based on the chosen payout option:
  • Option A (For Graduation): 40% of Sum Assured at the end of the policy term, 30% at policy term + 1 year, 20% at policy term + 2 years, and 10% at policy term + 3 years.
  • Option B (For Post-Graduation): 10% of Sum Assured at the end of the policy term, 10% at policy term + 1 year, 10% at policy term + 2 years, and 70% at policy term + 3 years.
  • Option C: 100% of the Sum Assured paid as a single lump sum at the end of the policy term.
• Tax Benefits: Premium payments are eligible for tax deductions under Section 80C, and maturity/death benefits are tax-free under Section 10(10D), subject to prevailing tax laws.

Riders Under Generali Central Assured Education Plan

As explicitly mentioned in the plan's terms, no riders are available under the Generali Central Assured Education Plan.

Additional Details of Generali Central Assured Education Plan

• Premium Payment Options: Premiums can be paid on a Yearly, Half-yearly, Quarterly, or Monthly basis. Monthly premiums must be paid via Electronic Clearing System (ECS). Policyholders can change their payment frequency on any policy anniversary without extra charges.
• Grace Period: Generali Central Life Insurance provides a grace period of 30 days for Yearly, Half-yearly, and Quarterly premium payment frequencies, and 15 days for Monthly payments. Life cover continues during this period.
• Surrender Rules: The policy acquires a Surrender Value and can be surrendered for cash after the completion of the first policy year, provided one full year's premium has been paid. The payout will be the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV).
• Paid-up Value: If premiums for at least one full policy year are paid and subsequent payments are missed, the policy automatically converts to a paid-up state. The Sum Assured and Death Sum Assured are proportionally reduced. In case of death under a paid-up policy, the nominee receives the reduced paid-up death Sum Assured, 5% of the paid-up Sum Assured yearly, and the reduced maturity benefit.
• Policy Loans: Once the policy acquires a surrender value, you can avail a loan of up to 85% of the Surrender Value. The minimum loan amount is ₹10,000. The interest rate applicable for FY 2024-25 is 9% per annum compounded half-yearly.
• Free-look Period: Policyholders are entitled to a 30-day free-look period from the receipt of the Policy Document to review and return the policy if they disagree with any terms.

Exclusions Under Generali Central Assured Education Plan

• Suicide Exclusion: If the life assured commits suicide within 12 months from the policy's risk commencement date or the date of revival, Generali Central Life Insurance will not pay the death benefit. Instead, the nominee is entitled to receive at least 80% of the total premiums paid till the date of death, or the available surrender value on the date of death, whichever is higher, provided the policy is actively in force.

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