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Edustar enables parents to meet the rising costs of their children's education via an extremely low monthly premium. The plan is flexible enough to allow you to set aside even more than originally planned if circumstances permit. The Edustar plan also participates in the investment of the stable, high-yielding Lifestar Fund.
The Nature of the Policy
Edustar is a flexible investment-linked policy designed specifically for persons up to age 14. This plan is geared to assist in providing funds for further education with access to benefits from age 18.
Edustar utilizes the "unbundling concept" introduced by Guardian Life in its investment-linked series of products. Simply put, each life insurance premium is divided into its separate identifiable components, i.e. the mortality (risk) portion, the policy fee (administrative costs) and the investment portion which enjoys participation in the results of the Lifestar Fund, a separate portfolio of special investments.
While the Company cannot guarantee how this portfolio of investments will perform, it allows policyholders the potential to enjoy a significantly greater return on their investment dollar, more than that provided under a conventional life insurance policy.
Key Benefits
- Option of a low monthly premium or single premium
- Premiums invested enjoys growth in high-yielding Lifestar Fund
- Waiver of Premium option
- The option to convert the policy to another ten times its value upon maturity
Regular Premiums
The recommended minimum monthly premium is $200.00 for all ages at entry and is payable until maturity .The policy matures on the anniversary proceeding the policyholder's 25th birthday. Additionally, lump sums of at least $500 will be accepted at any time. These unscheduled premiums will serve to increase the level of investment participation for the policyholder in the Lifestar Fund.
At any policy anniversary, the facility exists to increase the level of regular premium payments by $50.00 increments. Conversely, regular premiums may be reduced by any multiple of $50.00 to a level not lower than the recommended minimum monthly premium, currently $200.00.
Single Premium Options
Edustar is also available through a single premium payment. The minimum amount required to effect such a policy is $15,000.00. The option to make lump sum deposits at anytime while the policy is in force is available subject to a minimum of $500.00. Both the Single Premium and the lump sum deposits will be allocated to the Fund at the rate of 100%.
Additional Policy Benefits
Two Separate Waiver of Premium Benefits are available at an additional charge:
(a) In the event of the death of the proposer Guardian Life will pay a fixed premium of $400.00 per month on the policy. This payment will ensure the continued growth of the fund until the policy matures. This benefit is available to proposers who are less than age 50 at policy inception.
(b) In the event of the death of the proposer or during periods of total disablement Guardian Life will pay a fixed premium of $400.00 per month on the policy. This benefit is available to proposers who are less than age 45 at policy inception. There is a one-year initial exclusion period before the Waiver of Premium Benefit coverage is effective. Upon the contingency of a claim within the one year initial exclusion period, a return of premiums (i.e. the Waiver of Premium's rider premiums) will be refunded to the claimant. Once the initial exclusion period has expired, the Company's usual six month waiting period will apply. That is, no premiums will be waived during the first months of any period of disablement.
Where does your premium go?
Utilising the unbundling concept described earlier during the first policy year 70% of the premium is allocated to Client Accumulation. Each month, after the first year's premium has been paid, the full premium is allocated. If premiums are increased, 70% of the increase will be allocated to the Fund in the year of increase and 100% thereafter. A 100% of lump sum deposits will be allocated to the Fund. When applying both premiums and lump sum deposits, a purchase rate of 106% of the current Lifestar Fund Index is used.
A monthly charge is deducted from the Client Accumulation for the mortality risk based on the life assured's age last birthday plus a policy fee to cover monthly administrative costs. The Client Accumulation enjoys the full investment performance of the Lifestar Fund. The Company reserves the right to modify the mortality charge and policy fee to reflect actual experience.
Conversion Options
At maturity the policyholder can effect another policy worth ten times the sum assured of the Edustar Educational Savings Plan without having to undergo any medical underwriting. This option excludes the purchase of term and critical illness plans offered by the Company.
Death Benefit
The amount payable on the death of the insured prior to maturity is the sum assured plus the Client Accumulation.
Surrender Charges
Surrender charges are applicable should you terminate your regular premium plan at any time during the first four years of existence. The amount of this charge decreases annually and there is no charge from the fifth year. Surrender charges apply only in the first year on the single premium option.
