Education Benefit

Education benefit is financial cover that is given by insurance companies to surviving dependent children in case the policyholder meets with an accidental death. Education benefit facility is provided in accordance with the personal accident insurance policy.

• Education benefit is applicable only in case of accidental death of the policyholder, and it is applicable when the personal accident insurance with education benefit has been purchased.

• The surviving children must be dependent on the policyholder for their financial needs.

• This is a one-time lumpsum payment made only to the children, and it must be utilized only for the education of the surviving children.

In case of accidental death, the surviving children or dependents are often left in a lurch with respect to their financial needs. The premature death of the primary breadwinner of the family not only causes insecurity with respect to the future but also hinders child education. This cover is especially recommended for individuals whose families are dependent on them for their day-to-day as well as future needs.

Example: Mrs. Sharma is a single mother who works as a teacher and has a 10-year-old son. She has purchased an accident insurance policy with education benefit cover. Unfortunately, Mrs. Sharma dies in an accident. In such a case, her son is entitled to receive the education benefit in the form of a lump sum provided by the insurance policy, which can be utilized for his education, that will help him secure a bright future.

Education Benefit is provided under the Activ Secure Personal Health Plan.