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Child Plan
Child plan is a mix of investment and insurance that usually aids in financial planning for kids’ future needs and requirements at the right age. You can protect and secure the future of your child with child insurance plans encompassing child education plans. Under a child policy, life cover is available as a lump sum payment at the conclusion of the policy term. This is not it; such plans also offer coverage your child with flexible pay-outs at the crucial milestones of the child’s education.
Like most parents, you would also have various concerns when it comes to the future of your child. And, of course, a lot of questions too. Questions like...
- Can I afford my kids’ education?
- Do I have enough money in my bank account?
- What if something bad happens to me, or them?
- But many of you don’t consider the most important question – Should I buy a child plan for my kid?
- Unlike some questions, this one’s easy to answer.
- ‘Yes, you should’
A college degree, regardless of the surging cost of education, remains a major and the most important achievement in the modern economy. You’re more likely to get a job and earn an adequate salary the more educated you are.
Yet many parents aren’t preparing for it. The outrageous cost of higher education, with a lack of parental savings and the economic advantage of going to college or university, has led to historic levels of education loans.
Here Child Education Plan Comes to Rescue:
Child Plan is insurance cum investment plan that kills two birds with one stone, i.e. financially securing your kids’ future and financing the decisive moments in your kids’ life like higher education and marriage.
So, like a double-edged sword, the best child education plan is designed to safeguard the child’s future in case of your unfortunate and untimely demise and at the same time, builds a financial corpus over a time to be utilized to finance prime moments in your kid’s life.
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What is a Child Education Plan?

Child education plan comes loaded with several benefits like building a financial corpus for your child's future needs, life cover, and the option of adding specific riders. So, invest in the best child education plan, but do not forget to compare quotes before signing on the dotted line.
The surging cost of education is one of the biggest troubles for Indian parents.
Here are some facts supporting this statement:
In an online survey conducted by ET Wealth, over 60% of Indian parents listed this as their biggest worry. This was shadowed by not saving enough, lack of knowledge, and starting too late.
However, here they didn’t consider the actual biggest worry - the risk of their own unfortunate demise. Well, you should have. As per statistics of the National Crime Records Bureau, every 90 seconds an Indian citizen dies in an accident.
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Compare Best Child Insurance Plans in India
A wise mom once said, "Your child will keep building castles in the air; you better start buying bricks for those castles today." Loving your child is what comes naturally, but as a responsible parent, you have certain obligations towards your child. Getting a child education plan is one such obligation; in fact, the most important one. If you are reading this, you've already proved that you are a concerned parent finding ways to secure your child's future. Let us help you in understanding what exactly a child plan is and the need to go for the best one.
Best Child Plan - Eligibility Criteria:
Child Plans |
Entry age |
Maximum Maturity Age |
Minimum Annual Premium |
Minimum Sum assured |
Bajaj Allianz Young Assure |
18-50 years |
60 years |
N/A |
10 times the Annualized premium |
Birla Sun Life Insurance Vision Star Plus |
18-55years |
75 years |
N/A |
Rs. 1 Lakh |
Max Life Shiksha Life Super |
21-50 years |
65 years |
Rs. 25000/- |
Rs. 2.5 Lakh |
ICICI Pru Smart kid Assure plan |
20-54 years |
64 years |
Rs. 48,000/- |
Rs. 45,000/- |
AEGON Life Rising Star Insurance Plan |
18-48 years |
65 years |
Rs. 20,000/- |
10 times of the regular Annualized premium |
MetLife Smart Child Plan |
18-55 years |
N/A |
Rs. 18000/- |
10 times the annualised premium |
Shriram New Shrividya Plan |
18-50 years |
70 years |
N/A |
Rs. 1 Lakh |
Bharti AXA Life Child Advantage Plan |
18-55 years |
76 years |
Depends on Minimum Sum Assured |
Rs. 25,000/- |
HDFC SL YoungStar Super Premium |
18-65 years |
75 years |
Rs. 15,000/- |
10 times the annualised premium |
Exide Life Mera Aashirvad Plan |
21-50 years |
65 years |
N/A |
Rs. 3.5 Lakh |
SBI Life Smart champ Insurance Plan |
21-50 years |
70 years |
Rs. 6,000/- |
Rs. 1 Lakh |
Edelweiss Tokio Life Edu Save Plan |
18-45 years |
60 years |
Rs. 6,968/- |
Rs. 2.25 Lakh |
Aviva Young Scholar Advantage Plan (Child Education Plan) |
21-45 years |
60 years |
Rs. 50,000/- |
10 times the annual premium |
Future Generali Assured Education Plan (Child Education Plan) |
21-50 years |
67 years |
Rs. 20,000/- |
N/A |
MetLife College Plan (Child Education Plan) |
20-45 years |
69 years |
Rs. 18,000/- |
Rs. 2,12,040/- |
SBI Life Smart Scholar (Child Education Plan) |
18-57 years |
65 Years |
Rs. 24,000/- |
20/7 times the annual premium (regular pay) 1.25 times single premium (single pay) |
Key features of Child Insurance Plans:

A child plan comes loaded with a wide range of useful features to ensure a rewarding return and protection. Quite expectedly, a child education policy is a must for every parent.
Quite often, a child education plan is designed to offer safety to the kids in the case of financial crunch during vital decisions of life. Child plans are available in both non-linked and linked types.
Here’s a little overview of just some of the many helpful and useful features of the best Child Education Plan:
Sum Assured
The sum assured in a child education plan is the amount of money that is paid out in event of the unfortunate or untimely demise of the policyholder. Most of the time, the sum assured must be more than 10 times the current gross earning of the policyholder.
Premium Amount
It is subject to the sum assured and the amount of maturity benefit you opt for. You may opt to pay the premium amount frequently on regular intervals or for a certain period of time. Most of the life insurance providers offer options such as annually, semi-annually, quarterly, and monthly mode of payment. The amount of premium varies depending on the sum assured you choose in case of the traditional child plans.
Policy Term
When you realize that your child should get on his/her feet is the best time for the policy to mature. Choose the policy term to meet the exact period. For example, if one of your children's age is 10 years, then choose the policy term of 8 years.
Waiver of Premium Benefit
Waiver of Premium (WoP) is an inherent rider of a child education plan. This feature is applicable if the policyholder dies in a stipulated period of time. In such a case, the sum assured will be paid out to the nominated beneficiary, while the due premium for the remaining policy term is paid by the insurance company.
At the maturity of the policy, the nominee is entitled to receive the maturity amount as mentioned in the policy document. In case this feature is not a part of the plan, it is recommended to include it without failure.
Partial Withdrawal
It is often seen that parents instead of holding back themselves for the policy to mature, like to withdraw the sum assured in multiple fragments whenever they need it. This is often selected to fulfil the financial needs of the child at certain key moments. Many child plans also come with an option of partial liquidity.
Premium Payment Mode Sum Assured
The sum assured must not be less than at least 10 times your current income, says the thumb rule.
- Regular premium- Under this mode of premium payment, you need to pay the premium on a regular basis, viz. annually, semi-annually, or quarterly.
- Single premium - Under this mode of premium payment, the premium is paid only once.
Maturity Amount
You should choose the maturity amount keeping an eye on your child’s future. You can consult a financial advisor and remember the inflation rate along with interest rates and all other factors, plan the maturity amount that you would need at policy maturity. You can receive the maturity amount as a lump-sum pay-out or over a period of 5 years.
Also, child education plan such as single premium plan may not offer appropriate maturity features and benefits, so go through the fine prints of the policy document before applying.
Funds’ Choice
A child education plan such as a ULIP plan enables you to choose the type of fund to make an investment (money market, hybrid, debt, and equity). You’re given an option of Dynamic Fund Allocation and Systematic Transfer Plan also.
Additional Riders
Certain riders are available, which give you more than just a simple life insurance policy. These riders are available in three sub-categories:
- Accidental Death and Disability Benefit – The Accidental Death and Disability Rider Benefit pay the extra sum assured in the event of your unfortunate mishap causing death or disability.
- Premium Waiver Benefit – This rider may be already added to the best child education plan, so check your policy document in this regard.
- Critical Illness Rider Benefit – Critical Illness rider benefit offers coverage for a pre-determined set of critical diseases.
Advantages of a Child Plan
A child plan offers a wide range of exciting and unique benefits to the policyholder. With amazing advantages, a child education plan is a must-have in your kitty. This will help you make sizeable savings for your child without having to run from pillar to post.
Here’s a rundown to the advantages of the best Child Education Plan:
Corpus for Child's Education
Even with minimum premium payment, child plans are able to provide as much as 10 times the amount paid in the child plan. This lump sum amount in child education plans can be foremost utilized towards education expenditure.
A child education plan is often enough to pay for college education, and even higher education in a foreign country. The money available from a child education plan depends on the terms and conditions of the plan and on the amount one has invested in it by way of premiums.
A Kitty for Medical Treatment of the Child
Child plans also allow the option of withdrawing money during the tenure of the child investment plans. This can be used for medical treatment of the child when he or she falls ill. Such partial withdrawals come in handy when the child is hospitalized due to an ailment, minor accident or a more serious medical condition. The best child plan helps to reduce the financial burden caused by medical expenditure and such payouts act as an add-on for one's health insurance plan.
Supports the Child in the Absence of Parent(s)
Death does not come with an invitation and no amount of preparation can leave on ready for such an event. The consequences are more so for the innocent child. The death of the parent(s) causes severe trauma to a child and can leave his or her future hanging by a thread. The insurance company offers a premium waiver if the parent (i.e., the insured) passes away during the policy term of a child education plan.
The premium waiver benefit often comes inbuilt with the best child education plan. If not, one should definitely opt for this rider. The child receives a lump sum amount promised at the time of purchasing the best child plan and does not have to pay balance premium.
This rider enables the policy to continue without any breaks and passes the financial burden of remaining premium to the insurer.
Income Protection for the Child
A child education plan also protects the income of those children who start earning at a young age. It includes child actors, musicians, artists and performers among others. It provides the advantage of capital appreciation over the long-term for the child.
Acts as Collateral for Loans for Higher Education
Higher education is expensive, whether one plans to send the child to a private college or university in India or abroad. In fact, international education is significantly more expensive. A Child plan comes in handy if one intends to secure a loan for higher education as these are allowed to be used as collaterals. They can also be used as collateral for other child-related borrowings.
A child plan is a great education policy and the best investment plan for the child. The child education plan also instils discipline and helps form the habit of saving to secure the child's future.
Core Benefits of Child Insurance Plans
Apart from the main advantages, child insurance plans have some benefits also. They are:
Tax Benefit
You can avail tax benefits under a child plan on death or maturity claim profits under section 10 (10D). Moreover, the premium paid for a child education plan is eligible for tax deduction under section 80C of the Income Tax Act, 1961.
Maturity Benefit
At the time of maturity of the child plan, the sum assured is paid out to the guardian or parent. In the event of the early demise of the insured, the kid is allowed to get all the benefits of the child plan.
Loan Benefit
You can also avail secured loans against a child education plan.
Types of Child Plans
Mostly all the insurance providers offer child insurance policies as a vital insurance product in the portfolio. These child plans may vary on different parameters basis the individual priorities and needs and come handy with customised and tailor-made features.
Different types of Child Plans in India are:
Single Premium Child Plan
The policyholder pays a lump sum amount in the form of a single premium for the entire policy term and stays worry free from remembering the due dates of premium payment. You’ll not have to come across any hassles of making arrangement of finances for the premium payment. Some insurance providers additionally offer appealing discounts or reduce the premium on child plans.
Regular Premium Child Plan
Unlike single premium child education plan, regular premium child policy offers you flexibility on payment of premium. You can pay the premium monthly, quarterly, half-yearly, or yearly.
Child ULIP
Child ULIP plan gives you a three-prolonged benefit, along with higher insurance coverage, contribution in the equity market, and disciplined investments. Three benefits mean that the nominated beneficiary, i.e. the child receives the sum assured on the demise of the insured parent or guardian. The future premiums are waived off and the maturity amount is paid when the policy matures, making sure that the future dream of your children is fulfilled.
Traditional Child Endowment Plan
The premium is invested in debt instruments while the decision is at the kept with the insurance company. The bonus payable at maturity decides the returns.
How is it Different from a Term Plan?
Scenario
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Term Plan
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Child Plan
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In case the Policyholder dies
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The death benefit is paid and the policy comes to an end
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The death benefit is paid and the policy continues as the insurer pays rest of the premiums.
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In case the Policyholder survives
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No Maturity Benefit
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Maturity Benefit
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Best Child Plans in India 2019:
So far, we’ve discussed a lot about child plans. So, if you’ve made up your mind of buying one, let’s discuss the best child plans in India:
Insurer |
Plan Name |
Type of Plan |
Policy Term |
Plan Benefits |
Sum Assured |
Bajaj Life |
Future Gain – Premium Waiver Option |
ULIP |
Minimum: 10 yearsMaximum: 30 years |
-Maturity Benefit: the regular premium fund value along with top-up premium fund value as on the date of maturity.-Death Benefit: This is payable as a lump sum is –
- The higher of the SA ore regular premium fund value along with
- The higher of the top-up premium SA or the top-up premium fund value
-Surrender Benefit: This option is available at any time. |
For> 45: Up to 10 times the annualized premiumFor=<45: Up to 7 times the annualized premium |
HDFC Life |
Click2Wealth – Premium Waiver Option |
ULIP |
Minimum: 10 yearsMaximum: 40 years |
-Maturity Benefit: you will get your fund value on maturity.-Death Benefit:
- Death of Life Assured – Highest of the fund value, 105 per cent of total paid premiums, or total SA less a sum of Partial Withdrawals
- Death of the Proposer*: Equal sum of modal premium credited to Fund Value.
-Return of Mortality Charges-Partial Withdrawal-Settlement Option-Top-up premiums |
Single Pay – 1.25 times the single premiumRegular & limited pay – Higher of:
Top-up –1.25 times the top-up premium |
Max Life |
Online Savings Plan – Premium Waiver Option |
ULIP |
Choose your policy term basis on maturity age (opted by you) and the variant. |
-Maturity Benefit: you will receive the Maturity amount equal to the fund value.-Death Benefit:
- Death of Life Assured (Variant 1)– Highest of the fund value, 105 per cent of total paid premiums, or total SA less a sum of Partial Withdrawals
- Death of Life Assured (Variant 2) – Lump Sum Benefit, Family Income Benefit, Fund Value shall be paid on the maturity date and funding of premiums.
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Variant 1 – Cover multiple-x Annual PremiumVariant 2 – Maximum Cover multiple is fixed at 10 times. |
ICICI Pru |
Smart Kid |
ULIP |
Minimum: 10 yearsMaximum: 25 years |
-Death Benefit:
- Lump Sum Benefit
- Smart Benefit
-Maturity Benefit: You’ll receive the Fund Value that will include top-up fund value (if any). |
Up to 10 times the annualized premium |
Edelweiss Tokio |
Wealth Plus – Rising Star |
ULIP |
Minimum: 10 yearsMaximum: 20 years |
-Additional Allocation-Maturity Benefit:You will receive the Fund Value as the maturity benefit.-Settlement Option-Death Benefit:
- Death of Life Assured – Highest of the fund value, 105 percent of total paid premiums, or total SA less a sum of Partial Withdrawals along with highest of the top-up fund value, 105 percent of total top-up paid premiums or top-up SA
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10 times the Annual Premium |
Bajaj Life Future Gain
Bajaj Life Future Gain is a Unit-linked Endowment Plan by Bajaj Allianz Life Insurance Company, which offers maximum premium allocation to ensure that your hard-earned money is fully utilised towards your set goal.
Key Features:
Some of the key features of Bajaj Life Future Gain ULIPs are:
- Maximum premium allocation
- Option to make payment of top-up premium
- Option to change premium payment frequency
- Choice of 7 funds
- Partial withdrawal option is available
- Settlement option
- Option to add riders to enhance your coverage
- Option to reduce the SA
Eligibility Criteria:
Parameter
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Minimum
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Maximum
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Age of Entry
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1 year
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60 years
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Maturity Age
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18 years
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70 years
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Policy Term
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10 years
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The term policy will be:
Premium Paying Term (PPT)
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5 or 6
|
Other PPTs
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Policy Term
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10,15 to 20 years
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10,15 to 30 years
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Premium Payment Term (PPT)
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5 years
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30 years
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Premium Payment Frequency
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Monthly, Quarterly, Semi-annually, Annually
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HDFC Life Click2Wealth
HDFC Life Insurance Company offers HDFC Life Click2Wealth – a Unit-linked Life Insurance Plan. This ULIP plan offers market linked returns with minimal charges and provides financial protection for your child.
Key features:
Listed below are some of the key features of HDFC Life Click2Wealth:
- Premium waiver benefit
- Unlimited free fund switching with choice of 8 fund options
- Minimal charges
- Return of Mortality Charges
- Systematic Transfer plan strategy
Eligibility Criteria:
Parameter
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Minimum
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Maximum
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Age of Entry
|
0 years
|
65 years
|
Maturity Age
|
18 years
|
99 years
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Policy Term
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10 years
|
40 years
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Premium Payment Term (PPT)
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Limited: 5,7, & 10 years
Regular: 10-40 years
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Premium Payment Frequency
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NA
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Max Life Online Savings
Max Life Online Savings plan is a non-participating, unit-linked insurance plan, which provides market linked returns along with life insurance protection. You can choose your fund option and death benefit basis your need and requirement.
Key features:
Following are the key features of Max Life Online Savings plan:
- Unlimited free switches
- Zero Policy Administration Charges and Premium Allocation
- Choice of fund options or investment strategy
- Dynamic fund allocation
- Choose your annual premium
Eligibility Criteria:
Parameter
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Minimum
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Maximum
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Age of Entry
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18 years
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Variant 1: 60 years
Variant 2: 54 years
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Maturity Age
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NA
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Variant 1: 85 years (for >= 10 pay variants) and 70 years (for >= 5 pay variants)
Variant 2: 64 years
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Policy Term
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Variant 1: 5 years (for Maturity age <=70 years)
10 years (for Maturity age between 71 years and 85 years)
Variant 2: 5 years
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Variant 1: 52 years (for Maturity age <=70 years)
67 years (for Maturity age between 71 years and 85 years)
Variant 2: 30 years
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Premium Payment Term (PPT)
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Variant 1: 5 years (for Maturity age <=70 years)
10 years (for Maturity age between 71 years and 85 years)
Variant 2: 5 years
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Variant 1: up to chosen Policy term (for Maturity age <=70 years)
Up to chosen policy term (for Maturity age between 71 years and 85 years)
Variant 2: Up to chosen policy term
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Premium Payment Frequency
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Monthly, quarterly, semi-annually, annually
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ICICI Pru SmartKid
ICICI Pru SmartKid plan is a unit-linked insurance plan by ICICI Pru Smart Life. This plan helps you save money and build a financial corpus for your child’s future.
Key Features:
Some of the chief features of ICICI Pru SmartKid Plan are:
- Premium Waiver Option
- The convenience of purchasing online
- Choice of 4 fund options
- Free switching options
- Choice of investment strategy
Eligibility Criteria:
Parameter
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Minimum
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Maximum
|
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Regular Pay
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Single Pay
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Regular Pay
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Single Pay
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Age of Entry
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20 years
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20 years
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54 years
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54 years
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Maturity Age
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30 years
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30 years
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64 years
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64 years
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Policy Term
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10 years
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10 years
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25 years
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NA
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Premium Payment Term (PPT)
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Same as the Policy term
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Single Pay
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Premium Payment Frequency
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Regular Pay: Monthly, semi-annually, and annually
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Single Pay: Single
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Edelweiss Tokio Wealth Plus
Edelweiss Tokio Wealth Plus is a non-participating, unit-linked life insurance plan, which offers life cover along with investment strategies.
Key Features:
Some of the main features of Edelweiss Tokio Wealth Plus plan are:
- Rising Star Benefit
- Extra Allocation
- Premium Booster
- Liquidity – Partial Withdrawal option
- Additional Allocations
Eligibility Criteria:
Parameter
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Minimum
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Maximum
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Age of Entry
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1 year
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55 years
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Maturity Age
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18 years
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70 years
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Policy Term
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10 years
|
20 years
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Premium Payment Term (PPT)
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5 years
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Policy term minus 1
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Premium Payment Frequency
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Monthly, quarterly, semi-annually, annually
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Written By: PolicyBazaar - Updated: 26 November 2019