Child Plans

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What is a Child Plan?

A Child Plan is a financial product that combines investment and insurance to secure your child’s future needs. It provides financial support for significant milestones such as education, marriage, or starting a business. These plans offer a safety net in case of a parent’s premature death and help build a corpus for future expenses.

Why Should You Buy a Child Insurance Plan?

• Financial Security for Child’s Future: Covers major life expenses like education or marriage, regardless of life’s uncertainties.
• Protection Against Unforeseen Circumstances: Provides a lump sum amount if a parent passes away, ensuring the child’s future needs are met.
• Building a Savings Habit: Encourages disciplined savings through regular contributions.
• Tax Benefits: Premiums are eligible for tax deductions under Section 80C, with maturity benefits being tax-free under Section 10(10D).
• Flexibility in Payments: Allows choosing the frequency and amount of premium payments.
• Educational Support: Features like partial withdrawals help cover educational expenses.

Types of Child Insurance Plans

1. Traditional Child Insurance Plans: Focus on safety and guaranteed returns, typically investing in debt instruments.
2. Unit Linked Insurance Plans (ULIPs): Offer life insurance and investment in market-linked instruments, providing potential for higher returns and flexibility in fund switching.

Features of Child Insurance Plans

• Waiver of Premium: Future premiums are waived if the parent passes away.
• Maturity Benefits: Lump sum amount on maturity for significant milestones.
• Partial Withdrawals: Allows withdrawals to meet educational or other needs.
• Death Benefits: Provides a lump sum amount on the death of the parent.
• Riders: Additional coverage options such as critical illness or accidental death.
• Tax Benefits: Premiums and benefits have tax advantages under the Income Tax Act.

Benefits of Child Protection Plan Insurance

• Ensured Educational Opportunities: Funds for higher education.
• Comprehensive Financial Security: Covers both death and maturity benefits.
• Adaptability to Changing Needs: Flexible features for evolving needs.
• Peace of Mind: Security for your child’s future.
• Long-Term Wealth Creation: Builds a substantial corpus over time.

Our Child Plans

1. ABSLI Child’s Future Assured Plan
   • UIN: 109N124V01
   • Features: Guaranteed returns, flexibility for education or marriage, tax benefits.
   • Annualized Premium for 10 Years: ₹1 lakh¹
   • Guaranteed Benefits: ₹21.58 lakhs
2. ABSLI Vision Star Plan
   • UIN: 109N096V03
   • Features: Money Back Plan, future premium waiver, regular payouts.
   • Annualized Premium for 5 Years: ₹9.36 lakhs
   • Total Return: ₹92.39 lakhs

How Does a Child Insurance Plan Work?

• Premium Payments: Regular or lump sum premiums.
• Investment Growth: Premiums are partly invested and grow over time.
• Payouts: Lump sum amount on maturity or as per market conditions for ULIPs.
• Death Benefit: Immediate sum assured and waiver of further premiums if the parent passes away.
• Partial Withdrawals: Available for immediate financial needs.

Child Insurance Riders

• Waiver of Premium Rider: Waives future premiums in case of the policyholder’s death or disability.
• Critical Illness Rider: Lump sum payment for specified critical illnesses.
• Accidental Death and Disability Rider: Additional sum assured for accidental events.
• Term Rider: Increases death benefit coverage.
• Income Benefit Rider: Regular income for the family after the policyholder’s death or disability.

Are Child Plans Tax-Free?

• Premiums Paid: Eligible for tax deductions under Section 80C.
• Maturity Benefits: Tax-free under Section 10(10D) if premiums do not exceed 10% of the sum assured.
• Death Benefits: Completely tax-free under Section 10(10D).

Tips to Consider While Buying a Child Plan

• Assess the Coverage Amount: Based on future expenses and inflation.
• Review the Investment Component: Choose according to risk tolerance and investment goals.
• Check Flexibility: Ensure the plan allows for changes in premium payments and withdrawals.
• Understand Partial Withdrawals: Know the conditions for accessing funds.
• Consider Additional Riders: For enhanced coverage.
• Compare Plans: Evaluate different options for the best features and benefits.
• Read the Fine Print: Understand all policy terms and conditions.
• Plan Early: Start early for smaller premiums and larger corpus.

Claim Process for Child Insurance Plans

1. Notification of Claim: Inform the insurer of the claim event.
2. Submission of Documents: Provide required documents like death certificate, policy document, and claim forms.
3. Review of Claim: Insurer verifies details and conditions.
4. Claim Settlement: Payment made to the nominee or beneficiary.
5. Dispute Resolution: Escalate to the grievance redressal cell or insurance ombudsman if needed.

Eligibility Criteria for Child Insurance Plans

• Age of the Child: Typically 90 days to 12 years.
• Age of the Parent: Usually 18 to 55 years.
• Policy Term: Extends until the child reaches adulthood, or longer.
• Premium Payment Terms: Regular, limited, or single pay options.
• Financial Status and Health: Capability to pay premiums and health declarations may be required.

Documents Required for Buying Child Insurance Plans

• Application Form
• Proof of Identity
• Proof of Address
• Proof of Age of the Child
• Income Proof
• Photographs
• Medical Reports (if required)
• Bank Account Details

Steps to Buy Child Insurance Online at ABSLI

1. Visit the Official ABSLI Website
2. Choose the Suitable Child Plan
3. Calculate the Premium
4. Fill Out the Application Form
5. Upload Documents
6. Make the Payment
7. Await Policy Confirmation
8. Review the Policy Document

Looking for Assistance?

Need help with your existing policy? Call us on our toll-free number for quick assistance.