Education
Policy
The Education Policy provides you with the
best way to put money aside to help meet the future cost of your children's education. The
period for which you pay the premium ranges from 9 years to 15 years depending on which
term suits your needs best.
At the end of the premium payment plan the
policy holder can elect to choose one of the following options:-
- payment of the policy proceeds in five (5)
yearly instalments, or
- a lump sum payment, five (5) years after the
last premium is paid under the premium payment chosen, or
- take a cash surrender value immediately.
EXAMPLE:
Mr. Simba is aged 40 years. He has three children aged 1 year, 6 years and 8 years . Mr.
Simba is planning that in ten years time, one child will be entering university, another
will be in high school and the youngest in primary school. This will cost Mr. Simba money.
If today he starts saving a sum of KShs. 1,780/- per month this will immediately guarantee
life cover of KShs. 200,000/-. Let us examine the annual benefits that Mr. Simba will
receive towards the children's education costs, after ten years or the maturity dates of
the policy:
| 10th year policy
endows |
KShs. 52,030/- |
| 11th year policy
endows |
KShs. 57,233/- |
| 12th year policy
endows |
KShs. 62,956/- |
| 13th year policy
endows |
KShs. 69,252/- |
| 14th year policy
endows |
KShs. 76,177/- |
After payment of the last premium (l0th year),
Mr. Simba has three choices:
| a) |
Take five yearly installments as illustrated above. |
| b) |
Take the maturity value - for this Mr Simba will have
to wait five years when he will receive KShs. 418,975/-. |
| c) |
Take the cash surrender value of the Policy
immediately after completion of ten years this will amount to KShs. 234,135/-. |
This example is based on an assumed annual growth rate
of 10% of the Policy Value Account.
BENEFITS
If Mr. Simba should die before the end of the Premium
Paying Term, the guaranteed Sum of Assurance is KShs. 200,000/-, payable outright.
Proceeds from the policy are entirely free from tax.
The policy may be taken jointly by husband
and wife
Loan Facility
This policy builds a cash surrender value in the third year, and the
policy may be assigned as a security.
Alternatively, when the policy acquires a surrender value of Kshs. 4,000/-
it qualifies for a Cannon loan, subject to company policy and prevailing
rates.
Non - forfeiture Condition
After your policy has been in force for at least three years
and provided three years premium has been paid the policy shall not be forfeited for
non-payment of premium.
Optional
/ Additional Benefits Available With Above Product
Funeral Expenses Benefit
This can be added at a very nominal additional
premium, subject to a maximum expenses of KShs. 100,000/= This is of
great value to families at the time of bereavement to defray all immediate
expenses related to the funeral ceremonies.
Waiver of Premium
Suppose Mr. Simba is unable to pursue his occupation as a result of illness or injury, the
Company pays his premiums until the policy matures or he dies. In either case, the full
benefits are payable.
Accidental Death Benefit
This can be included as a optional feature and doubles the sum assured in the event of
accidental death.
Level Term Rider
This can be added at a very nominal additional premium. This increases the Life Cover and
is an important estate planning tool.
Personal Accident
An illness or injury may stop you from working. Could you and your family live while you
are recovering from illness or waiting for a broken limb to mend.
To protect your income and your standard of living Cannon Assurance offer you the choice
to choose how much you think you will need to cover your family's commitments.
For further information
contact
info@cannonassurance.com
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