Max New York Life College Plan | Child Plan | Features

February 18th, 2011

College education is the most critical juncture of your child’s life; it’s the first time that your child moves out from the sheltered school life into the real world. It is most important that this college education experience is the very best for your child as it will be the defining phase that will shape their future.

Therefore it is essential that you start planning for your child’s professional education at the earliest, as the earlier you start, the better it will be towards meeting the needs of your child’s higher education. The best time to start planning is during the age group of 0-8 years as it gives you the maximum time period to be able to build a large corpus till your child reaches college-going age i.e. 18 years.

Features –

Features	Specification
Minimum/Maximum Entry Age of Life Assured (Last Birthday)	91 Days to 8 Years
Life Insured	Child On child attaining the age of 18 the policy shall be vested to the child
Policy Term	21 – Age at Entry of the Life Assured (Child)
Premium Payment Term	18- Age at Entry of the Life Assured (Child)
Minimum Sum Assured	Rs. 100,000 for Corporate Agents (excluding Axis Bank) and Rural Agency Channel Rs. 200,000 for Agency and other channels
Maximum Sum Assured	No limit subject to underwriting.
Bonus	Reversionary Bonus: The bonus option in this plan is “compound reversionary bonus”. Reversionary Bonuses are declared every year from end of year 2 onwards and once declared are guaranteed for the life of the contract.. The reversionary bonus in any year is a percentage of the base sum assured of the policy and previously declared cumulative reversionary bonuses in previous policy years Terminal Bonus:* The Company may declare a Terminal Bonus after the 10th Policy Anniversary as a percentage of Reversionary Bonus and is payable only once during the policy lifetime. The amount of terminal bonus paid will be based on the terminal bonus rate prevailing at the date of claim, which is the earlier of death, surrender or maturity. The rate of terminal bonus can vary from time to time and may even become zero. * Compound Reversionary Bonus means that the previously declared bonuses will also participate in successive bonus declarations.

Benefits

Death Benefits: On death during the term of the policy the following benefits will be paid immediately:

If attained age of the life assured < 7 years
Total premiums paid (accumulated with interest @ 3.5% p.a. compounded annually) plus accrued reversionary bonuses (if any) will be paid and the policy will be terminated.
If attained age of the life assured >= 7 years
Sum assured plus accrued reversionary bonuses and terminal Bonus (if any) would be paid and the policy will be terminated.
- The death benefit will not be reduced by the amount of already paid survival benefits. The policy will terminate immediately after paying the death benefit and the rest of the survival benefits payments will not paid.
- During the grace period, the insurance coverage continues but if the Life Insured dies during the grace period, the Company will deduct the unpaid Premium from the Death Benefits (as mentioned above) payable under the Policy.

Living and Maturity Benefit: Guaranteed cash backs every year from child’s age 18 to 21:

Child’s Age	Money Back (% of S.A.)
18	40%
19	20%
20	20%
21	40% + (Accrued Reversionary Bonus + Terminal Bonus, if any)

Total guaranteed money back / payout = (40%+20%+20%+40%) = 120% of Sum Assured

Payor Rider is mandatory.

Surrender Value: The policy acquires a surrender value from end of 3rd policy year subject to the payment of three full years’ premiums.
The surrender value will be equal to higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).
The Guaranteed Surrender Value will be equal to 30% of all premiums paid excluding first year’s premium and rider premiums.
The Special Surrender Value* will be non-guaranteed but higher than guaranteed surrender value and is approved by the Regulator.

*For additional details, please refer to the policy document.

Reduced Paid up Value: Once the policy acquires a surrender value, in case of premium discontinuance the policy will offer Reduced Paid up Sum Assured and will not lapse.
Reduced Paid Up Sum Assured = Sum Assured * (Total premiums paid / Total premiums payable)
The Reduced Paid Up policies are also participating but will be entitled to only Terminal Bonus and not Reversionary Bonus.

*In case Policy is in Reduced Paid-up Insurance mode the Money back from age 18 to 21 will be paid on such reduced sum assured.

Key Benefits –

Fund your child’s college education
To help fund your child’s college education, there will be guaranteed payouts from age 18-age 21 of your child. A total of 120% of sum assured
Protect your child’s college fund against any eventuality
In Max New York Life College Plan, a Money Back Life Insurance Plan, the policy continuance is assured in case of Payor* meeting with death or Total and Permanent disability through the Payor rider. This guarantees your child’s college fund and helps protect it against all emergencies.

*Payor means a person/ policyholder who has purchased a policy on the life of juvenile below the age of 18 years

Save extra during your child’s schooling days to fund higher education
The plan comes with a limited premium payment term up to child’s age 18, so you pay premiums only till he/she turns 18 and get guaranteed payouts for their college education from age 18-21.
Boost your child’s college education fund through compounding effect of bonuses
From the 2nd year of policy, your child’s college education fund will get a further boost with bonus amounts added each year into the policy corpus which in turn gets compounded every year.

In addition to this, there is also a possibility that the company declares a further bonus (called ‘Terminal Bonus’ applicable for policies in force for at least 10 years or more) on this amount to increase your child’s college fund even more.

This will accrue to a significant amount on policy maturity to fund your child’s education.

Riders –

Guaranteed Policy continuance in case of Payor’s death or disability MNYL College Plan comes with a Payor Rider (“Payor Rider” means a rider which entitles the Policyholder to waiver of premium benefit on policies effected on the life of juvenile below the age of 18 years, if the policyholder suffers total disability; or dies during the term of the policy, subject to terms and conditions of the Rider)

Which ensures that the policy continues even in case of Payor meeting with:

Death or,
Total and Permanent Disability.

“Total and Permanent Disability” refers to the proposer becoming permanently and totally disabled as a result of injury or sickness and is thereby totally incapable of engaging in any gainful activity or carry out any work, occupation, or profession to earn or obtain any wages, compensation, remuneration or profit.

Min Entry Age (Age Last Birthday)	20 years
Max Entry Age (Age Last Birthday)	55 years
Expiry Age (Age Last Birthday)	60 years
Payor Rider UIN	104B013V02

Suicide Exclusion for Payor Rider policy: The suicide exclusions for the Payor would be applicable as stated in the Payor Rider (UIN: 104B013V02) contract.

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