Children Education Plan
About Children Education Plan (CEP)
This is an education policy taken by a parent/guardian on his/her life for the benefit of a child. The term of policy is determined based on the age of the child and that of the payor. The minimum term is 10 years while the maximum is 25 years. A child whose age is 0 year is allowed up to a term of 25 years, a 10 year old is allowed up to 15 years provided that the Payor will not exceed age 65 at maturity.
A fixed sum assured and premium for a specified duration in years is provided. In the event of the demise of the life assured payment of premiums ceases and the policy will be acknowledged as death claim. The beneficiary is paid a guaranteed income of 1% of sum assured per month from the month of death of the Payor for the remaining period of the policy. The sum assured is payable at maturity to the beneficiary. This is a non-profit policy where no bonuses are declared. The policy can lapse during the first two years of cover if payment is not received within the grace period. If the policy has acquired surrender value, it is automatically converted to Reduced Paid-Up. The policy has as a rider=: Disability Protection Rider (DPR).
Why CEP?
- This policy provides for payment of annual premiums for periods ranging from 10 – 25 years.
- Guaranteed payments of school fees in the event of death, total and permanent disablement of the parent/guardian.
- Provides for payment of a lump sum at maturity when the child enters a tertiary institution (or secondary school).
- Provides for return of premiums in the event of death of the child before the maturity of the plan.
- The fund may be transferred to the benefit of any other child of the policyholder. In the event of death of the policyholder.
- Future premiums will be waived.
- A monthly income of 1% of the sum assured will be paid to the policyholder’s family till maturity of the plan.
- On maturity, the agreed fund will be paid for the child’s school fees.
- Sum assured /1000 x Rate x Mode + Policy fee
- Sum assured = Amount of risk
- Rate = the rate table
- Mode = Annual x 1, Semi-Annual x 0.52, Monthly x 0.09
- Policy fee = Annual + N600, Semi-Annual + N335, Monthly +N100
- DISSABILITY PROTECTION RIDER (DPR) CALCULATION= Sum assured /1000 x Rate x Mode
where
