MoneyVriksh.com

Report- 2

See other reports

ChildGain - A product of Allianz Bajaj Life Insurance Company

The Child Gain Solutions provides the reassurance of a secure future for children. There are 2 options to choose from:
Child Gain 21 - Maturing at the attainment of age 21 of the child
Child Gain 24 - Maturing at the attainment of age 24 of the child
Under this plan there is a Limited Premium Payment Term which means that premiums are payable till the child attains 18 years. There are survival benefits payable according to the option chosen.

Survival Benefits

ChildGain 21
Policy Anniversary following completion of Age	18	19	20	21
Payout as % of Sum Assured	20% + Bonuses	25%	25%	35%
ChildGain 24
Policy Anniversary following completion of Age	18	20	22	24
Payout as % of Sum Assured	25% + Bonuses	25%	25%	40%

Payout on the death of the Child

Age	Payout
Below 7 years	Premiums paid will be refunded without interest and the policy will terminate.
Above 7 years and below 18 years	Sum assured with accrued bonuses will be paid and the policy will terminate.
Above 18 years and below 24 years	Outstanding payouts will be paid as one lump sum and the policy will terminate.

Other Benefits

• Premium Waiver Benefit : In case of the death of the Policy Holder (Parent)
• Family Income Benefit : In case of the death of the policy holder during the term of the policy, monthly income benefit of 1% of the sum assured subject to maximum of Rs.10000 p.m. will be available till the end of the term

Eligibilty

Age of the Policy Holder	20 to 50 years
Age of the Child	0 to 13 years

How much does it cost
For a Rs.10,00,000 sum assured the yearly premium at age 30 of the policy holder and age 1 of the child, the premium is Rs.61125, payable for a period of 17 years under the ChildGain 21. This policy will mature after 21 years.

Detailed Illustration

Survival Benefits (Child)
At the beginning of Policy Year	Age of Child	Premium	Guaranteed Benefits	Non-Guaranteed Benefits @ 1.25% Bonus (Interest Rate @ 6%)	Non-Guaranteed Benefits @ 2% Bonus (Interest Rate @ 8%)	Non-Guaranteed Benefits @ 3.25% Bonus (Interest Rate @ 10%)
1	1	61125
2	2	61125
3	3	61125
4	4	61125
5	5	61125
6	6	61125
7	7	61125
8	8	61125
9	9	61125
10	10	61125
11	11	61125
12	12	61125
13	13	61125
14	14	61125
15	15	61125
16	16	61125
17	17	61125
18	18	0	200000	266210	456811	836163
19	19	0	250000	0	0	0
20	20	0	250000	0	0	0
21	21	0	350000	60000	100000	140000

Death Benefit (Child)
At the beginning of Policy Year	Age of Child	Premium	Guaranteed Death Benefit	Non-Guaranteed Death Benefit @ 1.25% Bonus (Interest Rate @ 6%)	Non-Guaranteed Death Benefit @ 2% Bonus (Interest Rate @ 8%)	Non-Guaranteed Death Benefit @ 3.25% Bonus (Interest Rate @ 10%)
1	1	61125	62900	0	0	0
2	2	61125	125800	0	0	0
3	3	61125	188700	0	0	0
4	4	61125	251600	0	0	0
5	5	61125	314500	0	0	0
6	6	61125	377400	0	0	0
7	7	61125	1000000	77383	126162	211547
8	8	61125	1000000	90850	148686	250923
9	9	61125	1000000	104486	171659	291578
10	10	61125	1000000	118292	195093	333554
11	11	61125	1000000	132271	218994	376894
12	12	61125	1000000	146424	243374	421643
13	13	61125	1000000	160755	268242	467847
14	14	61125	1000000	175264	293607	515552
15	15	61125	1000000	189955	319479	564807
16	16	61125	1000000	279829	420868	690663
17	17	61125	1000000	299890	452786	748173
18	18		1000000	320138	485241	807388
19	19		850000	0	0	0
20	20		600000	0	0	0
21	21		350000	0	0	0
* In case of death of child after the premium payment term, the outstanding cash payouts will be paid as one lump sum to the parent

  Analytical views of the above illustration

• If we consider the survival benefits under all the 3 scenarios, the yields work out to 2.65 %, 4.13 % and 6.39 % under 6 %, 8 % and 10 % investment scenarios respectively.
• In case of death of the policy holder anytime during the term of the policy the following benefits will be made available
• Remaining premiums will be waived
• Monthly income of Rs.10,000 p.m. will be paid to the family
• Child Survival benefits as illustrated above will be paid at stipulated time
• A comparable solution can be provided through a combination of LIC plans 90 and 164 through MagicPlan Secure Child. Given below are the comparative benefits Allianz Bajaj ChildGain 21 and Secure Child

Allianz Bajaj ChildGain 21		Child's Age	MagicPlan Secure Child*
Annual Premium : 61125 (17 Yrs.)			Annual Premium : 61003 (17 Yrs.)
10% Interest Scenario	6% Interest Scenario		Bonus derived from LIC's Benefit Illustration (10% Scenario)	@ Current Bonus
1036163	466210	18	490383	385503
250000	250000	19	236548	179188
250000	250000	20	251231	193751
490000	410000	21	265554	210954
		22	1481805	1329705
Yields			Yields
6.39%	2.65%		8.00%	6.57%
ChildGain 21 provides for monthly income benefit of Rs.10000 p.m. in case of the death of the policyholder. MagicPlan SecureChild provides a lumpsum of Rs.12,00,000 instead. Both provide for premium waivers.
ChildGain also provides for riskcover of the child which MagicPlan SecureChild does not.

Date of Analysis : 2nd Oct.2008

Disclaimer:
The above analysis is based on the illustration provided by the respective insurer. The analytical views expressed above are only personal views of the presenter
of this illustration and are not exhaustive. The presenter of this analysis does
not in any way undertake any responsibility of the company's future
performance related to the above product.