This one is a juvenile endowment policy that has been designed specifically to fund the education of the children. The company has introduced two types of insurance policies under this policy. The first one is the Tata AIG Life Assure Educare 18 and the other one is the Tata AIG Life Assure Educare 21.
In Tata AIG Life Assure Educare 18, the policy matures on the day when a child of the policy holder attains the age of eighteen and the second one become mature on the child’s twenty first birthday. This policy can be subscribed even before the birth of the child.
Some of the main features of this policy are as follows:
- In this policy, ten percent of the sum assured is paid either on maturity or in case of death of the policy holder.
- Additional guaranteed education benefit of 20 percent is paid to the insured at the time of maturity.
- A compounded non-guaranteed annual bonus is credited at the anniversary policy and this money is based on the performance of the company.
- A terminal bonus which is payable on death or maturity and to get this bonus one must maintain this policy for at least ten years.
- This policy also features money-back guarantee in which the money is refunded to the customer in case he or she doesn’t like the policy. In this case the money is refunded after deducting the administrative charges.
- In this policy the sum assured is paid after the death or maturity.
The policy also allows the insured to get tax benefit under section 80C and 10(10D) of the Indian Income Tax Act, 1961.