Tata AIG Life Insurance Star Kid

Tata AIG Star Kid Plan is a Traditional Participating Child Money Back Plan such that 20% of the Sum Assured is paid out when the child is 18, 19, 20, 21 and 22 years respectively and the first 5 years’ premiums are returned on maturity. A reversionary bonus is paid from the 6th policy anniversary and terminal bonus is also paid on maturity. Thus, in this plan, if the proposer meets with death or disability before the child reaches 18 years of age, then the child either receives 50% of the Sum Assured for immediate expenses or the future premiums are waived and also the future benefits are paid from the 18th year onwards. However, if the child dies, then the Sum Assured along with guaranteed additions and bonuses are paid and the policy is terminated.

Our Advice – Tata AIG Star Kid Plan is a plan which insures the child’s life along with his future if anything happens to the proposer such that it provides guaranteed protection. This plan further ensures that all cost for the child’s admission and higher education is fulfilled at any cost.


Key Features of Tata AIG Star Kid Plan

  • In this child plan, premium is paid for 10 years and 20% of the Sum Assured is paid to the child when he attains 18, 19, 20, 21 and 22 years.
  • The Benefit of the First 5 years’ Premium along with Guaranteed Additions, Reversionary Bonus and Terminal Bonus is paid on Maturity of the policy as Guaranteed Additions.
  • Money is paid whether the Life Insured, i.e. the child or the proposer dies as Death Benefit.
  • An automatic loan is given if premium is not paid within grace period.


Benefits you get from Tata AIG Star Kid Plan

Death Benefit –
  • If the proposer dies before the premium paying term is over, the future premiums are waived and also the future benefits are paid from the 18th year onwards as specified
  • If the proposer dies or meets with disability after the premium paying term but before the child is 18 years old, 50% of the Sum Assured for immediate expenses,
  • If the child dies, then Sum Assured + Guaranteed Additions + Reversionary Bonus + Terminal Bonus is paid and the policy is terminated

Survival Benefit – When the child attains:
18 years - 20% of the Sum Assured is paid
19 years - 20% of the Sum Assured is paid
20 years - 20% of the Sum Assured is paid
21 years - 20% of the Sum Assured is paid

Maturity Benefit – The remaining 20% of the Sum Assured + Guaranteed Addition of First 5 years’ Premium + Reversionary Bonus + Terminal Bonus

Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)


Eligibility in Tata AIG Star Kid Plan
Minimum
Maximum
Sum Assured
Rs 25,000
Rs 4,00,000
Policy Term
14 years
22 years
Premium Payment Term
10 years
Entry Age of Life Insured
30 days
8 years
Age at Maturity
-
22 years
Single premium (in Rs.)
Not Available
Payment modes
Yearly, Half-yearly, Quarterly, Monthly


Sample illustration of premium amount in Tata AIG Star Kid Plan

The below illustration is for a healthy person opting for a Sum Assured = Rs. 4,00,000
Age= 0, 5 and 8 years
Tata AIG Star Kid-Sample illustration of Premiums & Returns 


Additional Features and Benefits of Tata AIG Star Kid Plan

Riders - There are 2 in built riders available with this plan
§  Premium Waiver Benefit Rider
§  Accidental Death and Disability Rider


What happens if?

You stop paying the premium - If the policy holder stops paying the premium, the insurance cover will cease and the policy will lapse. However it can be revived within 5 years from the first unpaid premium after fulfillment of certain terms and conditions and payment of due premiums and interest.

You want to surrender the policy – Surrender is allowed after completion of 3 policy years.
Guaranteed Surrender Value = 30% of all basic premiums paid - 1st years premium

You want a loan against your policy - There is no loan available under this plan. However an automatic loan is provided from the Cash Value of the policy if the premium is not paid within the Grace Period.


Alternate traditional child plans from different insurance companies

1.     SBI Life - Scholar II
2.     Max New York Life College Plan
3.     HDFC Children's Plan


Other child insurance plans from Tata AIG Life Insurance Company Limited

1.     Tata AIG Assure 21 years Money Saver
2.     Tata AIG Assure 10 /20 /30 years Security & Growth Plans
3.     Tata AIG Assure EduCare at 21
4.     Tata AIG Assure EduCare at 18
5.     Tata AIG Assure Career Builder
6.     Tata AIG Assure 10/20/30 years Security & Growth Plans
7.     Tata AIG Life United Ujwal Bhavishya Supreme