What is a Child Saver Policy?

A child saver policy allows you to achieve discipline in saving for a child’s future education and other needs as it pays for such upon maturity. This policy can be bought for children aged from 1 day to 15 years. The minimum term of this policy is 6 years and the maximum term is 21 years. Payments made on this policy gain bonuses and can be increased while the policy is running.

The payer of the policy premiums is called the grantor and the child who the policy is for is called the grantee.



  • Upon maturity of the policy, a lump sum is paid to the policyholder free of tax. This amount includes bonuses.
  • Bonuses are payable onthe expected lump sum not premium contributions.
  • The policy can continue on death of the grantee if this option is taken at onboarding.
  • A policyholder can choose to increase the amount of their premium by 5%, 10%, 15%, 20% and 25%. This improves the payable lump sum by 3%, 6%, 9%, 12% and 15% respectively.
  • One can choose when the policy will mature as any age of the child between 1 day to 21 years.


One can choose any of the following options at onboarding of the Child Saver Policy.

  • Option 1: On the demise of the grantor (payer of policy) during the tenure of the policy, the policy ceases and refund of premiums plus interest is made to the beneficiary.
  • Option 2: On the death of the grantor (payer of policy) during the tenure of the policy, premiums are refunded plus interest and policy continues and NICO Life continues paying for the premiums. Policy has a one year waiting period.
  • Option 3: On the demise of a grantor (policyholder) during the tenure of the policy, NICO Life refunds premiums to the beneficiary and continues to pay premiums of the policy until its maturity when a lump sum will be paid. Medical underwriting is needed for this.