Cost of living is increasing at an exponential pace, and it’s hard to imagine how much would be needed, when you have to incur expenses on your children’s higher education and marriage. Askari Bank, in participation with EFU Life, brings Education and Marriage Plan that would help you secure the financial future of your children. The plan provides a disciplined way of accumulating an endowment fund that could be used at a later date for a particular purpose, be it to pay for your children’s college or university fee, or to meet their marriage expenses.
The plan not only provides high value savings, but also guarantees life assurance protection along with the flexibility to customize the benefits according to individual requirements.
Unit Accumulation and Investment Fund
Every contribution paid towards the plan is invested in an internal investment fund of EFU Life selected by the customer. The contributions are utilized to buy units of the Fund at the prevailing offer price. The objective of the funds is to maximize capital growth by investing in a balanced portfolio spread across a wide range of investment experts who adjust the mix of the underlying investments in the light of economic conditions and investment opportunities.
Fund Selection Option
Policyholders of Askari Bank have an option to select a unit fund based on their risk appetite and investment objective at the inception of their policies. The policyholders will have an option (conditions apply) to select from the following three unit funds:
Fund Acceleration Premiums
The is a regular contribution plan but also gives the flexibility to top-up the savings for depositing surplus funds as lump sum contributions in the plan. These lump sum contributions can be made at any time during the policy term.
Access to Savings at all times
The plan provides complete access to the accumulated fun value at all times. After the contributions have been paid for two full years, the Fund can be withdrawn for its full or partial value.
The minimum annual premium under the plan is Rs. 18,000/-.
For Fund Acceleration Premium payments, the minimum contribution is Rs. 18,000/- and the maximum contribution in a year is 5 times the current year’s annual regular contribution.
Applicable Ages and Terms
The plan is available for individuals from 18 years to 60 years of age. The minimum savings term available is 10 years while the maximum is 25 years. The savings term has to be selected in such a way that the maximum age of the customer at the end of the savings term is not more than 70 years.
The amount payable at maturity is equal to the fund value at the time of maturity. The fund value can be taken in lump sum or if funds are not required immediately, the amount can be left to accumulate with EFU Life for a maximum period of one year. At the end of the one year, EFU Life will pay the accumulated value and a “Maturity Investment Bonus” of 20% of the annual average premium. The maturity payout can also be taken in 2, 3 or 4 installments.
In the unfortunate event of death of the life assured (parent) during the savings term, the built-in “Continuation Benefit” ensures that the targeted fund at maturity is achieved. EFU Life will continue to make the contributions towards the plan.
Built-in Income Benefit
Under the built-in Income Benefit, the plan would ensure that a quarterly income is paid to the family in case of the unfortunate death of the life assured during the plan term. The customer has a choice of selecting any of the three levels of income, i.e.
The regular income can be used to pay for the expenses related to their continuing education and funds needed at the time of engagement or marriage of the child or for the support of the family.
Additional Benefit Riders
To customize the plan according to the needs of individual customers, the following additional benefit riders are available which can be attached to the plan:
The following charges apply on the plan:
Unit Allocation Percentage and Charges
The proportion of contribution for investment in units varies by policy year and is as follows:
|Policy Year||Allocation %|
|4 and 5||100%|
|6 to 10||103%|
A bid/offer spread of 5% applies to units.