Wednesday, May 7, 2014

Details of IDBI Federal Childsurance Savings Protection Insurance Plan

IDBI Federal has introduced a much awaiting insurance plan for children – Childsurance Savings Protection Plan. Every parents want to build bright future for their child. And to fullfill this dream, one needs money at a specific age of a child for his/her higher education and/or marriage.

This plan allows you to invest for the future needs of your child and stay secure.

Let us understand this plan now:

Plan Overview

IDBI Federal Childsurance ® Savings Protection Plan (UIN: 135N032V01) is a non-linked participating endowment plan that ensures your child’s future financial needs are fulfilled. Childsurance® Savings, is designed to give you guaranteed annual payouts and aid the important milestones in your child’s life. What’s more, in the unfortunate event of you not being around, the policy will continue exactly as you had planned it, without any further premiums being paid. In other words, this plan ensures that your child gets to live his/her dream exactly as you have planned, whether or not you are around.

Why Childsurance

    • Guaranteed annual payouts for important milestones

Childsurance® gives you guaranteed annual payouts either in the last 3 or last 5 years of the policy, depending on the policy term you choose.

    • Bonuses to boost your savings

Right from the 1st year, you get reversionary bonus. Along with reversionary bonus, interim and terminal bonuses (if any) would also be paid out at maturity.

    • Financial protection against uncertainty

In case of an unfortunate event, the death sum assured will provide for your child’s immediate needs.

    • Future premiums waived off in case of an unfortunate event

In case of an unfortunate event of you not being around, all future premiums of the policy will be waived off.

    • Plan continues till maturity even in case of unfortunate death

Even in the unfortunate event of death, the guaranteed annual payouts and bonuses will be paid on their respective due dates.

    • Two tax benefits

Childsurance® allows you to enjoy deductions under Section 80C of the Income Tax Act, 1961 on the premiums you pay. It also gives you maturity amount that is tax-free under section 10(10D). Childsurance offers you tax benefits for all the payouts.

    • Flexibility to plan for your needs

With Childsurance®, you have the option of choosing the maturity sum assured, policy term, premium payment term, and payment mode as per your child’s future needs.

    • Exclusive fund for your loved ones

By endorsing your Childsurance® policy under the Married Women’s Protection Act, 1874, you can create an exclusive fund for your loved ones which is legally protected from creditors and claimants.

    • Loan facility

In case of an emergency, you can avail of the loan facility on your policy. Loan is available once the policy attains surrender value. For more on loans please refer to the product brochure.

How does the plan work

We recommend you follow the steps given below while buying Childsurance Savings:

  1. Decide the amount of guaranteed annual payouts you would need. This will depend on your plans for your child’s future.
  2. Basis the amount of payouts, you should choose the Maturity Sum Assured (MSA). Guaranteed annual payouts are percentages of MSA such that sum of all guaranteed annual payouts equal to the MSA.
  3. Next, choose when and for how long you would need the payouts – the difference between your child’s current age and the age at which the guaranteed annual payouts should end, will be the policy term. Accordingly, you will know whether you will get 3 or 5 guaranteed annual payouts. This can help you plan your child’s future better.

If you choose a Policy Term of 10 to 14 years, you will receive 3 Guaranteed annual payouts as 20%, 20% and 60% of MSA in the corresponding last 3 years of your policy. If you choose a Policy Term of 15 to 25 years, you will receive 5 Guaranteed annual payouts s in the last 5 years of your policy with 20% of Maturity Sum Assured each year.

The illustration below explains how the product works for a limited premium policy with a policy term of 14 years.

You may download the official brochure of this plan from here.

Comments from Admin

If you’re looking to secure your child’s future, you can safely invest in this plan. The guaranteed annual payouts, bonus, inbuilt premium waiver rider and many other attractive features make this plan more attractive. So, you can start investing in this plan.

If you’ve any doubts on this plan, please feel free to put your query in comments section below.

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4.5 out of 5 stars Reviewer:adminFebruary 05, 2021