Private sector life insurer Max New York Life on Monday launched Shiksha Plus, a unit-linked plan, to facilitate a child's aspirations and goals over different phases of student life. "Shiksha plus is a 360-degree child plan that provides resources for over all development of your child under all uncertain circumstances," said Max New York Life director V Viswanand. Along with addressing the increasing cost of education, the plan also provides an option to secure the future of second child, he said. In case of death of the parent, the nominee or beneficiary is entitled to receive 10% of initial sum assured every year, subject to a maximum of 100% of sum assured, to provide for yearly education expenses of the child, Mr Viswanand said. It provides control over uncertainties of life and inflation, he added. Available with seven investment fund options, the plan has the option for upgrading premium for sibling on birth/adoption of second child, he said, adding, one could also increase the premium option to counter the impact of inflation. With a minimum premium of Rs 5,000, the fund allows partial withdrawal after completion of three years.
ICICI Pru LifeTime and ICICI Pru Lifestage are Unit Linked Pension Plans. Such insurance linked retirement plans are neither good investments nor do they offer sufficient insurance cover. As you can see, these have turned out to be bad deals. In the Lifetime plan, the fund value is not even equal to the total premiums that you have paid and in the Lifestage plan your return is just about 6% which is quite low. The mortality charges are as per your age which is why they have increased. Moreover, once these plans matures, you will have to compulsorily opt for annuity (regular income) and the annuity rates are generally modest. Assuming these plans mature in the next one year, it will be wise to surrender the plan now and curb your future commitments. Before you choose to buy a term plan, you have to consider a few points. You need to insure yourself, only during the time you are working and your family is financially dependent on you. At the age of 59, not all insurance companies w...
