MILLION DOLLARS CASH VALUE CHILD PLAN

Our children are our future- the apple of our eyes; we see our dreams through them and they are life’s most valuable gift for any parent. While we endeavour to provide them with the best in every aspect of life, gifting them life insurance coverage will prove an immensely valuable asset for them.

There are various life insurance options available which cater to varying needs of people. Among these, the whole life participating insurance offers permanent life insurance with premium that remains ‘levelled’ throughout the life of the insured.

The best part of this insurance coverage is that it offers a wide range of salient features, prominent among them being:

• Guaranteed levelled premium, a promised death benefit, cash surrender values and the option to enhance your basic policy with additional benefits and riders
• Growth of your savings in a tax-sheltered manner
• Growth of funds that is fairly steady
• Cash values that can be used for any financial need
• An annual dividend paid out through different dividend options such as the ability to purchase additional life insurance and reduce the amount of your premium
• The increase in the amount of death benefit owing to the cash value build due to the dividends
• Option to pay up premiums within a shorter period of time such as 10 years or 20 years

Dividend Options at a Glance:

OPTION 1 Paid-up addition (PUA) With the help of this dividend option, you can purchase paid-up insurance coverage which maximizes your coverage amount leading to greater long-term value for your heirs, as well as an increased total cash value. Not only this, by choosing this option at the time of issuing of the contract, you can benefit from the Additional deposit option. In addition, if you are 18 years of age or older, you also become eligible for a total disability guarantee.

OPTION 2 Annual premium reduction By using Annual premium reduction option, you can pay your premium partially or fully. If you want to reduce your premium amount at a certain time, such as retirement, this dividend option can effectively address your concern. Generally, dividends increase over the passage of time. This eventually leads to a gradual annual reduction in the amount of premium that you pay. You can thus use the saved money for your other desired endeavours.

OPTION 3 Payable in cash If you want to receive extra funds while keeping your coverage amount intact, you can receive annual dividend payments which can be used as per your needs. At the end of the year, you may receive tax slips.

OPTION 4 Deposit with interest To receive the dividend amount in your savings account (with interest), you can use ‘Deposit with interest’ option. Tax consequences may apply.

This wonderful insurance plan can prove a strong financial asset for your child as:

• Your child can be covered under the plan as early as 15 days after birth
• Anyone related to the child including parents, grandparents, aunts, uncles or legal guardians can open a plan for him/her
• It offers you the advantage of a fairly steady growth.
• While the plan grows in worth, you can use the funds as per your requirement.
• After a 10-year or 20-year period, you don’t need to make any further payments as the plan becomes fully funded.
• Your child can use the cash values for any of his financial needs such as education, marriage, down payment on a home, purchasing his dream vehicle, starting a business or, to make his family financially secure.
• When your child reaches the age of 18 years, you can hand over the ownership of the plan to him/her.
• As mentioned above, it can prove a valuable financial asset for your child during retirement.
• It guarantees permanent coverage to your child regardless of any illness that may arise later on.