SCHOLAR'S PLAN
As a parent, your child’s future and ability to fulfill your child’s dreams and aspirations is always your prime concern.
Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing rapidly. Just imagine how much you will need when your child takes these important steps in life!
Therefore, it is important that you PLAN today to ensure a bright future for your child. Start building your savings today with our Scholar’s Plan so that your child is able to lead a successful life with a secured financial future.
East West Life’s Scholar’s Plan gives you:
- Invaluable financial support to your child
- A choice to customize an ideal plan for your child
- Multiple options for multiple benefits.
Our Scholar’s Plan is designed to secure your child’s future by giving your child (the beneficiary) a lump sum amount on maturity or in case of the payer’s unfortunate demise early in the policy term. The premiums paid by you (less expenses and mortality charges) are invested by the company to provide excellent long-term returns.
Life has innumerable surprises in store for us. Parenthood is wonderful and it is such a stage, when you experience various emotions never thought possible. At the same time, parenthood also brings its own set of apprehensions and worries. What will your child grow up to be in the future? Will his/her future be as secure as you want it to be? Or more importantly, what can you do to make certain that his/her future is hassle–free and secure? Don’t Worry! Now, by planning ahead, you have the ability to answer these questions to your contentment.
East West Life’s Scholar’s Plan is especially designed to enable you to provide for higher education of your child and take care of your future needs in these times of spiraling costs.
This universal life child protection policy can be purchased on the life of the father or mother (i.e. the “Payer” of the policy), to provide for marriage and/or education of their child. The payer can also be a grandparent, brother, sister, real uncle or aunt of the child. This plan provides for the financial well-being of the child while offering cash value growth potential.
Supplementary Riders
The following supplementary riders can be attached to the policy:
Policy Maturity or Earlier Withdrawal
If the policy matures or 100% of the cash value is withdrawn at an earlier age, the policyholder will have to choose one of the following options to receive their accumulated amount:
- Single Lump Sum
- Life Long Pension
- Combination of Lump Sum Payment and Life Long Pension
Benefits Payable on Maturity of the Policy
On survival of the both lives insured, i.e. the Payer and the child, up to the maturity date, the Net Cash Value shall be payable. The Net Cash Value will be the Mathematical Reserve of the policy calculated LESS outstanding amounts due to us for loans given (if any).
Benefits Payable on Death of Life Insured
- God Forbid, if Child dies before the maturity date and during the life time of the payer, the payer must select one of the following two options:
- Substitute the deceased child with another child related to the payer or to the spouse, or
- Receive proportional payment of the Death Benefit, depending on the age nearest to the birthday at time of the child’s death, according to the following table, thus terminating the policy:
| Child age nearest birthday at death | | Amount Payable being the Following
Percentage of Sum Insured or Net Cash Value
(Whichever is Higher) |
| 1 year or less | | 10 percent |
| 2 years | | 20 percent |
| 3 years | | 30 percent |
| 4 years | | 40 percent |
| 5 years | | 50 percent |
| 6 years | | 60 percent |
| 7 years | | 70 percent |
| 8 years | | 80 percent |
| 9 years | | 90 percent |
| 10 years | | 100 percent |
- God Forbid, if the Payer dies before the maturity date and during the lifetime of the Child, the premiums shall cease and the following benefits shall be payable:
- The Sum Insured or the Net Cash Value (whichever is higher) shall be payable on the maturity date of the policy. Sum Insured here means the sum insured at the time of death of the payer.
- 10% of initial sum insured (i.e. sum insured at policy issue) will be paid per year to the child from the date of death of adult life (God forbid) to the maturity date in monthly installments. The first monthly payment shall fall due on the first day of the calendar month immediately after the date of death. The last monthly payment shall fall due on the first day of the calendar month immediately before the maturity date or when the Payer would have turned 70.
Policyholder’s Loans
After two policy years have been completed and provided at least two full policy years’ premium have been paid, withdrawals can be made from the account value to meet urgent cash needs. Outstanding amounts due to us for loans given shall be deducted from any death benefit.
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