Child Education Marriage insurance
In my previous article, I talked about the Child Education Marriage insurance. There was one thing I needed to mention, but because the article was getting too long, I didn’t include it.
So now, in this Part 2 article of the Child Education Marriage Plan, I’m presenting another version of this plan.
Understanding State Life Plan Table Numbers
All plans in State Life are denoted by table numbers.
For example, the Endowment Plan is denoted by table 03, the official table.
The official table numbers for Child Education Marriage Plan are two:
Table 75 and Table 76.
Table 76: A Detailed Overview
In the previous article, we discussed Table 75, the pure 75 Table.
In this article, we are discussing Table 76.
This is another official Child Education Marriage Plan from State Life.
In this one, the Family Income Benefit (FIB) is actually a rider.
Upcoming article: Riders Explained
I have an upcoming article in which I will explain riders:
their rates,
how they change based on occupation,
how they’re attached or detached from policies.
That article will cover riders in detail.
For now, let’s focus on Table 76.
Optional Family Income Benefit (FIB) in Table 76
In this table, the Family Income Benefit (FIB) is an optional rider
that you can add by choice from 10% to 50%.
In contrast, in Table 75, the FIB is already built-in at 24%.
That’s why its premium is comparatively higher than the Endowment Plan.
But if you remove the FIB rider from the same Child Education Marriage Plan,
the premium becomes almost the same as that of the Endowment Plan.
Sample Policy Breakdown
Let’s say the policy is of Rs. 500,000 and the maturity amount is Rs. 2.25 million.
The annual premium is Rs. 24,060 — almost the same as we saw in the Endowment Plan.
The Difference?
On the second page, the Family Income Benefit has been kept at zero —
which means in Table 76, the FIB can be added at will.
Finding the FIB Rate
How will you find its rate?
Just like I mentioned earlier, riders have additional costs which are added to the annual premium.
This Rs. 24,060 is the standard annual premium.
If you add 24% FIB, it becomes the same Rs. 29,000 that I mentioned in the 75-table article.
So first, please watch the 75-table article, then watch this one.
FIB Rate Calculation
Now, how do you calculate the FIB rate?
You can add FIB from 10% to 50%.
How will you find its rate?
All rates are available in the State Life rate book.
And like bonuses, you calculate this on a per Rs. 1000 basis.
I’ve also made a article on bonus calculations.
I can’t tell you the exact rate,
but I can share a Google Sheet or Dropbox file.
I’ll share the link where you can find rates for both Table 75 and Table 76.
How to Explain the Policy to a Client
Let’s say someone wants to take a policy for their son or daughter — how will you explain it?
You’ll say:
“Sir, if you take a policy of Rs. 500,000, the annual premium is Rs. 24,060. If death occurs, the Rs. 2.25 million maturity amount is guaranteed.”
That maturity is guaranteed in both tables.
And the premium is Rs. 24,060 per year.
From day one, the coverage is confirmed for the 20-year term.
Currently, no FIB is added.
That cost will show in the chart and the monthly benefit will appear accordingly.
Get Personalized Assistance
I’ll share a sheet whose link I’ll add in the description once I get it.
Or you can call me and I’ll calculate and share a plan with you.
You can also contact me on WhatsApp and I’ll tell you the rates.
So however you find it convenient, the plan can be customized that way.
You understand?
Flexible FIB Options
Someone may want 10% FIB, someone else 20%, or 25%, 24% — however much they want.
The more they add, the more the rider’s cost will be and will be added to the premium.
Let’s say they add 15% FIB,
the cost will increase and be added to this Rs. 24,060
Key Difference:
There’s no major difference except that in Table 76, the Family Income Benefit can be added optionally,
while in Table 75 it is already built-in at 24% and included in the premium.
That’s why it looks expensive.
If someone wants a cheaper plan and still wants FIB,
they can customize it as they like.