Child PlanA child insurance policy isa saving cum investment The Maturity amount of plan that is designed to a child life insurance meet your child‘s future Policy is tax-free. financial needs. Whoever has children dependent upon them Tax benefits are offered can buy child plans. They under section 80C and can be parents, 10(10D) of the Income grandparents or legally Tax Act, 1961. assigned guardians of the child.
Why Child Plan A child insurance policy allows children the freedom Childrens Plans helps you to realize their future dreams save so that you can fulfill like higher education, study your childs dreams and abroad, etc. aspirations. Securing your Child insurance policy giveschilds future by financing the the advantage to start key milestones in their lives investing right from the time even if you are no longer the child is born and around to oversee them. withdraw the savings once the child reaches adulthood.
Points to consider before you buy policy… Riders Available: To ensure Payer benefit and waiver ofthat the child plan does not premium: Premium waiver inlapse in case the payer does a child plan implies that if the not survive the policy term, parent does not survive the there are certain riders policy term, all future available with it. The most premiums will be waived off important child plan riders and the policy will stillare payer benefit and waiver remain in force. of premium.
Allocation Charge: Allocation charge is the amount Guaranteed Benefit: deducted by the insurance Guaranteed benefit is acompany from the premium percentage of sum assured before investing in various that is guaranteed by the funds. Allocation charges insurance company in may be negligible in addition to the maturity traditional plans but more amount. prominent in ULIPS.
Types of Childrens PlansConventional Plans Unit Linked Insurance Plans•HDFC Children’s Plan •HDFC SL YoungStar Super II •HDFC SL YoungStar Super Premium•Conventional Plans are traditional •Unit Linked Insurance Plans offeredinsurance plans. They usually invest in by insurance companies allow policylow risk return options and offer holders to direct part of theirguaranteed maturity proceeds along premiums into different types ofwith declared bonuses funds (equity, debt, money market, hybrid etc.) Here the risk of investment is borne by the policyholder.
Eligibility conditions in HDFC Life Children’sPlan Entry Age of PremiumPolicy Term (in Policyholder (in Payment Term years): years): (in years): EqualMin/Max-10/25 Min/Max – to Policy Term 18/65 Regular Pay Payment premium (in modes: Yearly, Rs.):Min/Max - Half-yearly or No Limit Quarterly
Eligibility conditions in HDFC SL Young Star Super Premium Plan & HDFC SL Young Star Super II Plan Entry Age of PremiumPolicy Term (in Policyholder (in Payment Term years): years): (in years): EqualMin/Max-10/20 Min/Max – to Policy Term 18/65 Regular Pay Payment premium (in modes: Only Rs.):Min/Max - Yearly 15,000/No Limit
HDFC Standard Life insurance Children’s Plan HDFC SL Children’s Plan is traditional child plan with a large amount of variety provided to policyholder. In this plan, the life of the parent is insured but the child is the sole beneficiary. There are 3 Plan Options that can be chosen:Accelerated Benefit Maturity Benefit Plan Double Benefit PlanPlan
Benefits of Policy Income Tax Benefit - Life Insurance Maturity Benefit – premiums paid up to On maturity, Sum Rs. 1,00,000 are Death Benefit Assured + Bonuses allowed as a are paid under all 3 deduction from the Plan Options. taxable income each year under section 80C Maturity Benefit Plan- Double Benefit Plan- Accelerated Benefit Nothing is paid but the Sum Assured is paid andPlan- Sum Assured + policy continues such the policy continuesBonuses and the policy that the future such that the futureis terminated premiums are waived off premiums are waived off and paid by the insurer and paid by the insurer.
Minimum Premium Rs. 8,400 p.a.Modes of Premium Payment Yearly / Half yearly / MonthlyMinimum / Maximum Sum Assured Rs. 1,00,000 / Rs. 30,00,000Minimum / Maximum age at entry 20 / 60 years(Parent)Minimum / Maximum age at maturity 50 / 70 years(Parent)Minimum / Maximum age at entry 0 / 12 years(Child)Minimum / Maximum age at maturity 22 / 25 years(Child)Minimum / Maximum Policy Term 10 / 25 years
Additional features Guaranteed Death benefiteducational benefits SA paid immediately Option 1: Benefits at critical educational milestones Future premium paid by company Option 2: Avail of benefits in the last 5 years of the policy Income Benefit Rider Accident and Disability Benefit Rider
Premium payment option Minimum annual premium (Rs.) Regular pay 18,000minimum Premium Limited pay 5 48,000 Limited pay 7 36,000 Limited pay 10 18,000Maximum Premium Rs. 100,000 per annumModes of Premium Payment Yearly / Half yearly / Monthly Premium payment option Premium payment term Regular pay Policy termPremium Payment Term (PPT) Limited pay 5 5 years Limited pay 7 7 years Limited pay 10 10 yearsPolicy Term 10 / 15 / 20 / 25 years Higher of (10 × annual premium) and (0.5 × Policy Term × annualMinimum Sum Assured premium)Maximum Sum Assured As per the maximum Sum Assured multiplesMinimum/ Maximum age at entry 20 / 60 years for Single Life, 55 for Joint Life(Parent)Maximum age at maturity (Parent) 70 years for Single Life, 65 years Joint LifeMinimum/ Maximum age at entry 0 / 15 years(Child)Minimum/Maximum age at 18 / 25 yearsmaturity (Child)
Additional Benefits Loyalty Additions: Loyalty additionsMaturity benefit: At maturity, the shall be allocated at the end of every Fund Value including the Top up fifth policy year, starting from the end of Fund Value (if any), shall be the 10 policy year, provided all duepayable. Alternatively, you can opt premiums have been paid. This loyalty addition will be calculated as 2% of the for the Settlement Options average of Fund Values on the last d ay available of the eight policy quarters preceding the said allocation. Death benefit: In the unfortunate event of death of the parent (Life Assured) during the term of the Policy, the following benefits are payable: Higher of Sum Assured and 105% of the total premiums (including top-up premiums) paid till date would be paid All future premiums payable under the policy will be waived by the Company If the joint life option is chosen, the death benefit shall become payable on death of either of the parents, whichever is earlier
SBI Life - Smart Scholar Plan (ULIP Plan)Age at Entry * Child: Min: 0 years Max: 17 years Proposer: Min: 18 years Max: 57 yearsMax. Age at Maturity 65 yearsPolicy Term Min: 8 years Max: 25 years less child’s age at entry (On Maturity, the age of child should be between 18 to 25 years)Premium Payment Terms • Single Premium(PPT) • 5 to 25 years (subject to the limits of policy term)Premium Amounts(x100) Minimum: PPT Frequency Minimum(Rs) SP Single 75,000 Yearly 50,000 Half Yearly 25.000 5 years to 7 years Quarterly 12,500 Monthly*** 4,500 Yearly 24,000 Half Yearly 16,000 8 years or more Quarterly 10,000 Monthly*** 4,000 Maximum : No LimitSum Assured For Single Premium: Minimum Maximum Across all ages Age<45 years Age=>45 years 1.25 * SP 5 * SP 1.25 * SP For other PPTs: Minimum Maximum Age<45 years Age=>45 years Across all Higher of: 10 * 7 * AP 20 * AP AP or ½ * T * APPartial Withdrawals Upto 15% of Fund Value can be withdrawn each year, from 6th year onwards, subject to conditions. 1 free partial withdrawal in a policy year
Additional FeaturesDual protection for your family, in case you are not around• Dual protection for your family, in case you arePayment of base Sum Assured and not aroundInbuilt Premium Payor Waiver benefit to ensure continuance of your benefits Accident Benefit which includes Accidental Death benefit and Accidental Total and Permanent Disability (Accidental TPD) benefit, is an integral part of the plan Enhanced investment opportunity through 9 varied fund options including P/E Managed Fund, Index Fund & Top 300 Fund Liquidity through partial withdrawal(s). Free allocation of units by way of regular Loyalty Additions, giving periodic boosts to your investments. Twin benefits of market linked return & insurance benefit
SBI Life - Scholar II ( A traditional participating plan) TermPremium Payment Term ( PPT) 18 - Childs Age at entryPolicy Term 21 - Childs Age at entry ( You are covered till the child attains 21 years of age) PremiumPremium Mode Monthly / Quarterly / Half Yearly / Yearly ( Single Premium also available) Age ( As on Last Birthday)Entry Age ( Life Assured ) Minimum: 18 years ; Maximum: 60 yearsEntry Age ( Child) Minimum: 0 years ; Maximum:15 yearsMaximum Age at Maturity (Life Assured) 70 years Sum AssuredMinimum Sum Assured Rs 50,000/-Maximum Sum Assured Rs 1 Crore Riders Available SBI Life - Dhanavantri Supreme - Individual Critical Illness (CI Rider) (UIN : 111C004V02) SBI Life - Accidental Death and Permanent Disability (AD & PD ) Rider (UIN: 111C001V01) SBI Life - Premium Waiver Benefit (PWB) Rider ( Individuals) ( UIN : 111B005V01)
Additional benefitsTwin benefit of saving for your child’s education and securing a bright future despite the uncertainties of life. Full risk cover throughout the policy term irrespective of payment of survival benefits installments. Option to receive the installments in lump sum at the due date of first installment of Survival benefit Rebate for Female lives and High Sum Assured