AIICO Insurance’s School Fees Plan is an endowment assurance that aims to provide for future education fees of a child under all circumstances including in the unfortunate event of death or total disability of the parent/guardian. You need this plan if you are saving towards the schooling of your child or ward and you want them to still be able to afford a certain standard of whether you are alive or not.

For this plan, there is a Main Risk Cover and Optional Risk Cover

The documents required are Proof of your identity, utility bill, duly completed know your customer form, duly completed abridged medical questionnaire) and any other required document as the company deem necessary.

You can decide to pay your premiums one-off (single), annually, semi-annually, quarterly, or monthly, whichever works best for you.

At policy inception, the policy owner chooses who he wants to receive the maturity payment. He can choose for the school or for himself or his beneficiary to receive the payment.

The policy owner chooses how he wants the payment made. He can choose to receive the payment as an annuity (i.e., an annual payment) or he can choose to receive the payment as a lump sum.

Once benefit payment has begun, you cannot change benefit payment methods i.e., from lump sum to annuity or from annuity to lump sum.

The policy owner can receive his maturity benefit for a minimum of 1 year (lump sum) and a maximum of 12 years.

The Maintenance benefit is a percentage of the annual school fees agreed upon at inception. The allowed percentages are 12%, 18%, 24%, 30% and 36% of the annual school fees.

If the insured commits suicide, while sane or insane, within two years from the date of issue or from the date of any reinstatement of the policy, the waiver of premium on death would not be activated.

Cancer (Leukemia (other than chronic lymphocytic leukemia) and Hodgkin’s disease), Coronary Artery Disease, Heart Attack, Kidney Failure, Major Organ Transplants, Stroke.

No benefit shall be payable under waiver of premium on critical illness rider benefit for pre-existing conditions at policy inception to reduce risk of anti-selection and moral hazard.

The disability rider cover provides the following range of benefits:

To do a quote you will need:

• Your age
• The age of your child
• The annual school fees of the intended school
• The number of years you want to save for
• The number of years you want to receive your payments on maturity (1 year means lump sum)
• Your preferred escalation rate

You have the opportunity of changing the child insured to another child. Where there is no child to replace the initially covered, a lump sum is paid instead.

The term options are between 5 to 24 years. It is advisable to pick a policy term that is equal to the time left until the start of the child/ward’s education. The policy must expire when the policyholder attains age 65 years therefore a 60 years old person can only take up this policy for 5 years.

You must be above 18 but less than 60 to take up this plan. Your child cannot be more than 19 at policy inception.

On making a death, disability or critical illness claim on the guardian/parent, premiums are waived, and the other riders forfeited. If death of the guardian/parent occurs and the Maintenance rider is selected, the beneficiaries receive an amount periodically for upkeep until the end of the policy term.

On death of the child during the policy term, you have the opportunity of changing the child insured to another child. Where there is no child to replace the initially covered, a lump sum is paid instead.

If no claim is made, your maturity benefit will be paid.

No benefit shall be payable under waiver of premium on death and disability rider benefits within 6 months of commencement of policy and from pre-existing conditions within the first 24 months.

No benefit shall be payable under waiver of premium on critical illness rider benefit within 24 months of commencement of policy.

Surrender of policy prior commencement of school fees payment is allowed but with a penalty dependent on policy term. The Surrender Benefit shall be a refund of main benefit premiums paid (i.e., excluding premiums relating to the rider benefit) to the point of surrender subject to the penalties. These penalties are meant to recoup the expenses that the company incurs up-front.

• Duly completed claim form.
• Policy Document (original).
• Proof of the insured event such as death certificate.
• Proof of identity of the beneficiary or policyholder.
• Account details of beneficiary(ies).

There are no benefits when premiums are missed. Cover is available up to the date covered by last premium payment. Payment of premium should follow agreed terms and condition as specified in the policy document. However, Life assurance may continue after lapse if policy is reinstated subject to no loss during lapse period and where the policy conditions are not breached. In case of reinstatement, medical examination may be triggered, and additional cost shall be payable by the policyholder as penalty.

Reinstatements within two years to the end of the policy term shall be prohibited due to the significant anti-selection and moral hazard that this poses to the company due to the cashback benefit.

If the close call procedure falls within five days of diagnosis, the company would reimburse you of the treatment costs up to the allowed limit. Policy alterations are allowed. Some alterations allowed include:

• Replacement of child in case of death of the initial child;
• Change in method of payment;
• Change in Beneficiary details;
• Change in Policyholder’s details;
• Reinstatements except those within two years to the end of the policy term.

Reinstatements within two years to the end of the policy term are not allowed.

No! This product is non participatory. You do not share in AIICO Insurance’s profit