Cornerstone Insurance Insight: Securing children’s education with savings plan
Cornerstone Insurance Plc
Nike Popoola
Planning for the education of children or dependants can be made easier with a structured savings plan that combines contributions with financial protection.
The Children Education Fund of Cornerstone Insurance Plc is designed to provide a lump sum over an agreed period to support the education of one’s children or dependants.
The plan allows policyholders to make contributions monthly, quarterly, half-yearly or yearly. The minimum policy period is five years, while the maximum age at entry is 50 next birthday.
Under the plan, if the policyholder dies during the agreed period, the account fund balance plus the sum assured on the plan, representing the outstanding premium as at the date of death, is paid to the named beneficiary.
Where the policyholder survives the agreed period, the total contribution with accrued interest is paid at expiration of the policy. The plan also provides an annuity option at maturity.
The Children Education Fund provides some flexibility during the policy period. A policy can be surrendered after it has been in force for a minimum of one year, subject to the policy terms and conditions. Policyholders may also obtain a policy loan of up to 70 per cent of the fund balance after the policy has been in force for at least one year.
The policy can also be tendered as collateral with any financial institution and has a cash value during the policy period, subject to its terms and conditions.
Other features include an attractive interest rate and flexible contribution options. With these features, the Children Education Fund provides a structured way for parents and guardians to save towards their children’s education while having life protection attached to the plan.
