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5. Children Policies
These types of policies are designed so as to benefit the child
at a certain milestone in life – certain age, graduation,
marriage etc. and usually taken on the life of the
parent/children for the benefit of the child. By such policy
the parent can plan to get funds when the child attains
various stages in life. Some insurers offer waiver of premiums
in case of unfortunate death of the parent/proposer during
the term of the policy, but it is not part of the base plan; it
has to be purchased as a ‘rider’ to the base plan – by paying
some extra premium.
6. Annuity (Pension) Plans
A pension or an annuity is a fixed sum paid regularly to a person,
typically following retirement from working life. There are two
types of annuities (pension plans).
- Immediate Annuity
In case of immediate Annuity, the Annuity payment from the
Insurance Company starts immediately. Purchase price
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