Child plan

Child Plan

A child insurance policy is a saving cum investment plan that is designed to meet your child‘s future

financial needs.

Tax benefits are offered under section 80C and 10(10D) of the Income

Tax Act, 1961.

Whoever has children dependent upon them

can buy child plans. They can be parents,

grandparents or legally assigned guardians of the

child.

The Maturity amount of a child life insurance

Policy is tax-free.

Why Child Plan

Children's Plans helps you save so that you can fulfill your child's dreams and

aspirations. Securing your child's future by financing the key milestones in their lives

even if you are no longer around to oversee them.

A child insurance policy allows children the freedom

to realize their future dreams like higher education, study

abroad, etc.Child insurance policy gives

the advantage to start investing right from the time

the child is born and withdraw the savings once

the child reaches adulthood.

Points to consider before you buy policy…

Riders Available: To ensure that the child plan does not lapse in case the payer does not survive the policy term,

there are certain riders available with it. The most important child plan riders

are payer benefit and waiver of premium.

Payer benefit and waiver of premium: Premium waiver in a child plan implies that if the parent does not survive the

policy term, all future premiums will be waived off

and the policy will still remain in force.

Allocation Charge: Allocation charge is the amount

deducted by the insurance company from the premium before investing in various funds. Allocation charges

may be negligible in traditional plans but more

prominent in ULIPS.

Guaranteed Benefit: Guaranteed benefit is a

percentage of sum assured that is guaranteed by the

insurance company in addition to the maturity

amount.

Types of Children's PlansConventional Plans Unit Linked Insurance Plans

•HDFC Children’s Plan •HDFC SL YoungStar Super II•HDFC SL YoungStar Super Premium

•Conventional Plans are traditional insurance plans. They usually invest in low risk return options and offer guaranteed maturity proceeds along with declared bonuses

•Unit Linked Insurance Plans offered by insurance companies allow policy holders to direct part of their premiums into different types of funds (equity, debt, money market, hybrid etc.) Here the risk of investment is borne by the policyholder.

Eligibility conditions in HDFC Life Children’s Plan

Payment modes: Yearly, Half-yearly or

Quarterly

Regular Pay premium (in

Rs.):Min/Max - No Limit

Entry Age of Policyholder (in

years): Min/Max –

18/65

Premium Payment Term

(in years): Equal to Policy Term

Policy Term (in years):

Min/Max-10/25

Eligibility conditions in HDFC SL Young Star Super Premium Plan &

HDFC SL Young Star Super II Plan

Payment modes: Only

Yearly

Regular Pay premium (in

Rs.):Min/Max - 15,000/No Limit

Entry Age of Policyholder (in

years): Min/Max –

18/65

Premium Payment Term

(in years): Equal to Policy Term

Policy Term (in years):

Min/Max-10/20

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 Plan

Maturity Benefit Plan Double Benefit Plan

Benefits of Policy

Death Benefit

Income Tax Benefit - Life Insurance

premiums paid up to Rs. 1,00,000 are

allowed as a deduction from the taxable income each year under section

80C

Maturity Benefit – On maturity, Sum

Assured + Bonuses are paid under all 3

Plan Options.

Double Benefit Plan- Sum Assured is paid and the policy continues such that the future premiums are waived off and paid by the insurer.

Maturity Benefit Plan- Nothing is paid but the policy continues such that the future premiums are waived off and paid by the insurer

Accelerated Benefit Plan- Sum Assured + Bonuses and the policy is terminated

ICICI Pru SmartKid Regular Premium

(Traditional plan)

Minimum Premium Rs. 8,400 p.a.

Modes of Premium Payment Yearly / Half yearly / Monthly

Minimum / Maximum Sum Assured Rs. 1,00,000 / Rs. 30,00,000

Minimum / Maximum age at entry(Parent) 20 / 60 years

Minimum / Maximum age at maturity(Parent) 50 / 70 years

Minimum / Maximum age at entry(Child) 0 / 12 years

Minimum / Maximum age at maturity(Child) 22 / 25 years

Minimum / Maximum Policy Term 10 / 25 years

Additional features

Guaranteed educational benefits

Option 1: Benefits at critical educational milestones

Option 2: Avail of benefits in the last 5 years of the policy

Death benefit

SA paid immediately Future premium paid by company Income Benefit Rider

Accident and Disability Benefit Rider

ICICI Pru SmartKid Premier(ULIP Plan)

minimum Premium

Premium payment option Minimum annual premium (Rs.)

Regular pay 18,000Limited pay 5 48,000Limited pay 7 36,000

Limited pay 10 18,000Maximum Premium Rs. 100,000 per annum

Modes of Premium Payment Yearly / Half yearly / Monthly

Premium Payment Term (PPT)

Premium payment option Premium payment termRegular pay Policy term

Limited pay 5 5 yearsLimited pay 7 7 years

Limited pay 10 10 yearsPolicy Term 10 / 15 / 20 / 25 years

Minimum Sum Assured Higher of (10 × annual premium) and (0.5 × Policy Term × annual premium)

Maximum Sum Assured As per the maximum Sum Assured multiplesMinimum/ Maximum age at entry (Parent) 20 / 60 years for Single Life, 55 for Joint Life

Maximum age at maturity (Parent) 70 years for Single Life, 65 years Joint Life

Minimum/ Maximum age at entry (Child) 0 / 15 years

Minimum/Maximum age at maturity (Child) 18 / 25 years

Additional Benefits

Maturity benefit: At maturity, the Fund Value including the Top up

Fund Value (if any), shall be payable. Alternatively, you can opt

for the Settlement Options available

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 paidAll 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

Loyalty Additions: Loyalty additions shall be allocated at the end of every fifth policy year, starting from the end of the 10 policy year, provided all due premiums have been paid. This loyalty addition will be calculated as 2% of the average of Fund Values on the last d ay of the eight policy quarters preceding the said allocation.

SBI LIFE

SBI Life - Smart Scholar Plan(ULIP Plan)

Age at Entry * Child: Min: 0 years Max: 17 years

Proposer: Min: 18 years Max: 57 years

Max. Age at Maturity 65 years

Policy 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 (PPT)

• Single Premium • 5 to 25 years (subject to the limits of policy term)

Premium Amounts(x100) Minimum:

PPT Frequency Minimum(Rs)

SP Single 75,000

5 years to 7 years

Yearly 50,000 Half Yearly 25.000 Quarterly 12,500 Monthly*** 4,500

8 years or more

Yearly 24,000 Half Yearly 16,000 Quarterly 10,000 Monthly*** 4,000

Maximum : No Limit

Sum 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 * AP or ½ * T * AP

7 * AP 20 * AP

Partial 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

Tax Benefits** Under Sec. 80C and Sec. 10(10D) of Income Tax Act,1961

Additional Features

• Dual protection for your family, in case you are not around

Dual protection for your family, in case you are not around

Payment of base Sum Assured andInbuilt Premium Payor Waiver benefit to ensure continuance of your benefits

Free allocation of units by way of regular Loyalty Additions, giving periodic boosts to your investments.

Liquidity through partial withdrawal(s).

Accident Benefit which includes Accidental Death benefit and Accidental Total and Permanent Disability (Accidental TPD) benefit, is an integral part of the plan

Twin benefits of market linked return & insurance benefit

Enhanced investment opportunity through 9 varied fund options including P/E Managed Fund, Index Fund & Top 300 Fund

SBI Life - Scholar II( A traditional participating plan)

Term

Premium Payment Term ( PPT) 18 - Childs Age at entry

Policy Term 21 - Childs Age at entry ( You are covered till the child attains 21 years of age)

Premium

Premium Mode Monthly / Quarterly / Half Yearly / Yearly ( Single Premium also available)

Age ( As on Last Birthday)

Entry Age ( Life Assured ) Minimum: 18 years ; Maximum: 60 years

Entry Age ( Child) Minimum: 0 years ; Maximum:15 years

Maximum Age at Maturity (Life Assured) 70 years

Sum Assured

Minimum 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 benefits

Full risk cover throughout the policy term irrespective of payment of survival benefits installments.

Rebate for Female lives and High Sum Assured

Twin benefit of saving for your child’s education and securing a bright future despite the uncertainties of life.

Option to receive the installments in lump sum at the due date of first installment of Survival benefit