What is a child insurance Plan?
Child insurance plan is a traditional life insurance plan wherein the child is insured in this plan and the parent pays the premium so that the maturity benefit is given to the child to fulfil the parents dream about the childs future educational expenses.
Child plans can also be Unit Linked Insurance Plans as well as traditional plans. More often than not, children plans can be taken after you have a child and not before. It thus especially focuses to the need of a parent for the future of the child and not for others.
Max Life Child Plans
Max Life Insurance Company currently offers a single type of child education plan to its customers. Let us consider the plan which the company has in its kitty and what it offers in terms of benefits:
Max Life Shiksha Plus Super
Is a unit linked child plan designed to provide market related returns to boost wealth creation for the childs future and also life insurance protection for coverage purposes. The plans benefit structure is detailed below:
The plan can be taken by individuals who have a child aged 0 to 18 years.
Premiums under the plan can be paid for a limited tenure under the Limited pay option or for the entire duration of the plan under the Regular Pay Option of premium payment.
The premium net of the applicable charges can be invested by the policyholder himself among a choice of 5 fund options of can be chosen to be invested as per two different pre-defined strategies of Systematic Transfer Plan and Dynamic Fund Allocation.
Under the Systematic Transfer Plan option, the concept of rupee cost averaging is used and the net premium is initially invested in the Secure Plus Fund and thereafter every month, a proportion of the premium is transferred to the Growth Plus Fund
Under the Dynamic Fund Allocation option, the premium is invested initially in the Growth Super Fund and thereafter, as the plan approaches maturity, the funds are transferred to the Secure Fund to prevent the fund against market volatility. A specified ratio of the fund is maintained in both the fund options and the ratio changes as the plan progresses.
If the policyholder choose to make the investment decisions himself, the company offers him a choice of 5 funds to choose from which are Growth Super Fund, Growth Fund, Balanced Fund, Conservative Fund and Secure Fund
Guaranteed Loyalty Additions @0.20% of the Fund Value is added to the fund value from the 11th policy year. This ratio increases by 0.02% every year.
On maturity of the plan, the Fund Value is paid to the policyholder which he can choose to take at once or in 5 instalments over a course of 5 years after maturity through Settlement Option
In case of the insured dying, higher of the Fund Value or 105% of premiums paid till the date of death or (0.5*annual premium*term) is paid to the nominee
The plan has a unique feature of Family Income Benefit under which, after the death of the insured during the tenure of the plan, 10% of the chosen Sum Assured is paid every year till the end of the plan tenure subject to a minimum of 3 payments and a maximum of 10 payments.
Under another benefit called the Funding of Future Premiums, in case of death of the insured during the tenure of the plan, the company waives off the premiums and pays it towards the plan itself. On maturity of the plan, the applicable fund value is payable
Two free partial withdrawals are allowed every year after 5 policy years with a minimum value of Rs.5000
12 free switches are allowed every year to change between funds
6 free premium redirections are allowed every year to redirect future premium into another fund than which was originally selected.
Applying for a Child Plan from the company:
The company offers specific plans which are available online only. The customer only needs to log into the companys website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued
Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
Applying For Child Plans through PolicyBazaar
On the PolicyBazaar homepage, click on Child Plans under the Personal tab.
Click New Quotes to compare and choose from top insurance providers.
Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.
Fill in your name, email address, city, country code, and mobile number. Click Continue.
You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.
After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.
This will take you to the insurers website. Fill in the necessary details to buy the plan.