HSBC The world's local bank

Child education plans	Premiums	Premium waiver	Potential bonuses?
5 to 20 years	Monthly Quarterly Semi-annually Annually	Yes	Yes

Here's what you get:

• Enjoy flexible premiums – to suit your budget and risk comfort levels
• Borrow up to 80% of the cash value of your plan –  before the end of your plan
• Be paid a potential bonus – when your investment achieves a higher return

Plus:

• Should you die or be made permanently disabled – you have an option to waive the premium
• Distribute your plan to your loved ones – if you pass away
• Your contributions are invested by ALICO Gulf in a manner that your returns are preserved against any investment losses

Here's an example provided by ALICO Gulf - it's based on a male aged 30.

The above table is provided by the product provider ALICO Gulf and is for illustrative purposes only.

You can apply for the Education Plan if:

• You’re over 25 years old
• Your child is aged between 0 and 12 months
• Your child’s college entry age is between 17 to 20

Can I stop the Plan anytime? If so, what do I get?

If you stop contributions during the Accumulation Phase and your Policy has acquired an Encashment value*, your scheduled payout will be scaled down and the plan will continue without requiring any further contributions.

You may also decide to surrender the policy. In this case, if the plan has acquired a Surrender Value, you would receive it as a lump sum payment which in the few first years could possibly be less than what you have contributed.

How much should I contribute to the Plan?

Your Relationship Manager can tell you the premium that you should contribute to the plan based on the savings goal you are trying to achieve.

Alternatively, you can tell us how much you are comfortable to contribute on a regular basis and based on that ALICO will be able to tell you what your returns will be at plan maturity.

What if I die before my child reaches college age?

In the unfortunate event of your death during the accumulation phase the Plan will remain active, and contributions will still be required until the policy matures. For these reasons, the optional Family Protection Agreement is recommended, which waives all remaining premiums until policy maturity in the event of death or disability.

Nevertheless, if the policy has acquired a sufficient Encashment Value* and nobody is able to contribute for your child, ALICO would scale down the schedule payout and let the plan continue without requiring any further contributions. In case your heirs decide to surrender the policy after it acquired a surrender value they would receive it as a lump sum payment which can be less than what you've contributed. If the unforeseen happens to your child, the beneficiaries of the plan would receive a pro rata lump sum of the agreed amount.

*The Encashment Value is the Basic Cash Value of the policy plus accrued Excess Interest Bonuses to date.

What if I die while my child is in college?

In the regrettable event of your death while your child is in college, ALICO will continue paying the agreed annuities as given in the policy.