To qualify as an education policy and a medical policy for the
purpose of Section 49(1B) and subsection 49(4), Income Tax Act, 1967, the
following criteria will have to be satisfied :
3.1 Education Policy
i. The beneficiary should be the child;
ii. The insured can be the parent or the child :
Where the parent is the insured
Where the insured is the parent, the child must be the nominee.
Where the child is the insured
a. Where the insured is the child, a payor benefit rider is compulsory,
which means that the life of the person paying the premium i.e. the parent must also
be covered. On the death of the parent, all future premiums are assumed to have been
paid in full.