Shriram Life Child Plans
Shriram Life Insurance Company deals in two types of child insurance plans which are both traditional plans in nature. The child education plan with their complete details are listed below:
Shriram New Shri Vidya Plan
The plan is a money-back child plan and has the listed benefit structure:
The plan qualifies for bonus declarations
The premiums can be paid either for the entire duration of the plan under the Regular Pay option or for a limited tenure under the Limited Pay option of premium payment.
25% of Sum Assured is paid during the last 4 years of the term as money-back benefits if the insured survives till that period
On maturity of the policy, the total vested reversionary bonuses and Terminal Bonus, if available, is payable to the policyholder
If death occurs, the benefit paid will be the higher of basic Sum Assured plus the Additional Death Benefit or 10/7 times the premium payable annually including the vested reversionary bonuses and any Terminal Bonus.
The Additional Death Benefit is calculated by adding up the discounted value of the money-back benefits payable in the last 4 years of the policy and the inbuilt Family Income Benefit
The Family Income Benefit pays 1% of Sum Assured every month after the insured dies and till the completion of the policy tenure
The nominee can avail the death benefit in lump sum or choose to receive the money-back benefits as and when they accrue, i.e. in the last 4 years of the plan and the monthly Family Income Benefit of 1% of the Sum Assured following the date of death till the end of the tenure.
Loan can be availed under the plan which can be a maximum limit of 90% of Surrender Value
The plan can be customized by availing additional riders like Accident Benefit Rider, Shriram Extra Insurance Cover and Shriram Critical Illness Cover Rider.
Discounts are allowed to policyholders if the premiums are paid in advance
Rebates in premium is also allowed for opting for Sum Assured levels of Rs.5 lakhs and above
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.
Does a person with a sufficient life insurance policy need a child plan?
Even if you have a sufficient and large life insurance policy, you need to have a child plan. This is because the life insurance policy will pay the death benefit as soon as you die, in one lump sum and the policy will terminate. You must remember, that after your death, not only your child but the other members of your family like your spouse and parents will also require financial assistance. So the life insurance fund can get exhausted quickly. As a result you need a child plan that will continue even after your death and will guide the child till the time he/she is financially independent.
Thus, anyone with a child needs a child plan so that he can plan for his future expenses with a more clear mind and be financially aware of his future expenses and can thus plan accordingly. Each and every parent surely plans to do something for the child but opting for a child insurance plan is the first step taken towards a proper financial planning towards a better and a brighter future for the child. Thus opting for a child plan will not only help a child but a parent as well towards a healthy financial planning for the childs future educational expenses.