A company that was founded not very long back (December, 2007), being among the top insurance companies is a thing to boast about. And when it comes to one of the best child plans to invest in, IDBI Federal Childsurance Savings Protection Insurance Plan must be considered.
Understanding Childsurance Savings Protection Insurance Plan by IDBI
Everybody wants to make sure that the present as well as the future of their children is as bright as the stars and thus people try to do all that’s in their calibre to ensure the same. This particular child plan aids to enhance this calibre of yours many-fold. This one is a non-linked endowment child plan which makes it perfect for those who want zero risks involved in their insurance plans as no part of your money is invested in market funds which always have certain market risks attached.
Features
- Traditional Plan
This one is a non-linked participating endowment plan which falls under the periphery of traditional life insurance plans. And with traditional plan comes low risk which is perfect for those who wish to remain in the safety net, away from market risks.
- Reversionary Bonus
Being a participating policy, it will participate in the profits of the market funds in which the money is invested in. This profit will be based solely on the performance of the fund.
- Guaranteed Payouts
Guaranteed Annual Payouts are provided under this IDBI child pan to aid your child’s financial needs at important milestones. These payouts are percentages of Maximum Sum Assured that you finalize for at the start of the policy. You can choose the duration of these payouts, as to when and for how long these payouts should be paid to you. This should depend on your plan for your child’s needs.
- Immediate lump sum payout
In case the policyholder or the life insured (here, the parent) does not survive the policy term I.e. the event of death, the insurer (IDBI) will pay the lump sum amount (death benefit) to the beneficiary (child) immediately. Also, all the future premiums will be waived off. But it doesn’t mean that the benefits of the policy would cease to exist; the policy would go on for till the maturity period is reached.
- Surrender Value
If the policy is chosen with a premium paying term of less than 10 years then such policies will be acquired with a guaranteed surrender value, subject to all the premiums are paid for at least 2 continuous years. With premium paying term of 10 years or more, this surrender value will be acquired if all the premiums are paid for at least 3 continuous years
- Loan Availability
This is an added feature which allows the policyholder to take loan against IDBI Federal Childsurance Savings Protection Plan. There are certain conditions which come with this facility, few of which are mentioned below:
- Minimum loan amount is Rs.5000
- Loan amount will be 85% of the surrender value of the policy
Benefits
- Maturity Benefit
This benefit is the amount you will get once the full policy term is completed. This is the total of the Maturity Sum Assured and bonuses declared.
- Guaranteed annual payout
This, as the name suggests, is the payout received by the policyholder or the life insured in the last 3 years or the last 5 years of the policy term.
- Bonuses
Because this is a participating policy, the profit of the participating funds will be credited to the account of the policyholder which will form the fund value at the end of maturity period.
- Death benefit
There are certain unfortunate events that leave a person devastated. One such event is death of the parents. T such harsh times, financial help becomes all the more important and that’s why at the death of the parent (the policyholder of this child plan), the insurer pays the death sum assured to the child without any delay.
Also, the premiums are waived off too as the income flow is hampered with and thus the insurer (IDBI Life Insurance) waives it off.
- Flexibility in shaping the plan
IDBI Childsurance Savings Protection Plan is a flexible policy forwarded to its customers by IDBI and thus one can make use of this option to shape the plan as per their specific needs.
- Policy term
The policy term for this IDBI child plan can be a minimum of 10 years expanding to a maximum of 25 years.
- Premium payment term
This is the period for which the policyholder will be required to pay premiums. There are two options to choose from, namely Limited Payment ( 5 years less than the policy term) and Regular Payment (same as the policy term).
- Premium amount
For monthly installments, minimum premium to be paid is Rs.1000 while for annual mode, it is a minimum of Rs.10,000. this amount does not include GST and cess, if applicable.
- Tax Benefit
When investing in Childsurance Savings children plan, policyholder gets tax benefit too.
Under Section 80C and Section 10(D) of the Income Tax Act, 1961, premium amounting to Rs.1,00,000 and the maturity/death benefit is deductible, respectively. (The limit of Rs.1,00,000 includes other deductible investments too.)
- Women Advantage
This is a special benefit forwarded to the female policyholders of this child plan by IDBI. The basic premium payable for a female will be equivalent to a 3 years younger male. For example, if a 33 years old woman buys this policy, then the premium amount will be equivalent to a male of 30 years old.
Eligibility
| Particulars | Details |
| Entry age of life insured (parent) | 18 – 40 years (for Regular Premium Payment Mode)
18 – 50 years (for Limited Premium Payment Mode) |
| Entry age of nominee (child) | 1 month – 18 years |
| Maturity age (life insured) | 28 -65 years (for Regular Premium Payment Mode)
28 – 75 years (for Limited Premium Payment Mode) |
| Premium Payment mode | Fixed,/ Yearly and Monthly |
| Policy Term | 10 – 25 years |
FAQs
Q1. Can I apply for loan against my IDBI Federal Childsurance Savings Protection Plan?
Yes. Under this IDBI Federal Childsurance Savings Children Plan, loan facility is available.
Q2. I didn’t pay my last premium. What do I do? Will my policy lapse?
Relax. Your policy won’t lapse. You are entitled to a grace period of 15 days (annual mode) or 30 days (monthly mode) from the date of last unpaid premium in which you can pay the missed premium and the policy shall continue the same.