Children Education Plan (CEP) At AIICO Insurance Plc: The joy of all parents is to ensure that their children receive a high-quality education and that they feel well in the future. AIICO Insurance Plc offers two educational guidelines to meet these needs:
- Children Education Plan (CEP)
- Education Legacy Assurance Plan (ELAP)
Features of Children Education Plan
- This policy provides for payment of annual premiums for periods ranging from 10, 11, 12 to 25 years.
- Provides for payment of a lump sum at maturity when the child enters University or Secondary School.
- Also provides for the return of premium in the event of the death of the child before the maturity plan.
- The funds may be transferred to the benefit of another child of the policyholder.
- Guaranteed payments of school fees in the event of death, total and permanent disablement of the parent/guardian.
- In the event of the death of the policyholder,
- Future premiums will be waived.
- A monthly income of 1% of the sum assured will be paid to the policy holder’s family till maturity of the plan.
- On maturity, the agreed fund will be paid for the child’s school fees.
Education Legacy Assurance Plan (ELAP)
Features of ELAP
- Savings plan targeted toward financing the future education of a named child.
- An instrument by which sufficient fund is accumulated for the child’s future education.
- Protect children from a premature stoppage of schooling arising from:
- Death of parent/ sponsor
- Total Permanent Disability of parent/ Sponsor resulting from an accident or critical illness of parent/ sponsor
- Period of policy can range from a minimum of 8 years and a maximum of 18 years.
- Maximum age at entry of parent/ sponsor 57 and at exit 65
- Maturity: Total amount in Investment account.
- Death Benefit:
- Life Assurance Benefit: The higher of the Guaranteed Sum Assured, subject to a maximum of N 10 M, or balance in the policy holder’s investment account.
- Annual Maintenance Income: 25% of the sum assured payable for 5 years.
- Disability Benefits: Same as in 2 above.
- Redundancy Benefit:
- 6 months premium to be paid to update policy provided the policyholder has been with the employer for at least 3 years as at the time of taking the policy.
- A waiting period of 6 months.
- If after 3 years: Amount or balance in the Investment Account
- If before 3 years as follows
- Less than 1yr – full premium paid less insurance cost plus no interests.
- 1 but less than 2 – full premium paid less insurance cost + 30% accrued interest.
- 2 but less than 3 – full premium paid less insurance cost + 60% accrued interest.
- 3 and overfull account balance.
- Optional Withdrawal benefits:
- Cash Withdrawal – 20% from investment account balance in the 5th year and every 5year subject to a limit of 3 withdrawals
- Frequency: Monthly, Quarterly, Half-yearly, and Yearly
- Full premium allocated to investment
- The premium for Life Assurance Benefit: Schedule Tariff.
- Premium for PTD – 1.5%
- The premium for Redundancy – 1.25%