SBI Life Child Plans

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SBI Life Insurance Company is a joint venture between the State Bank of India and BNP Paribas Cardif. While the former Indian counterpart has a stake-holding of 74% of the company, BNP Paribas Cardif has a total holding of 26% of the company. According to the Brand Equity and Nielsen Survey conducted by the Economic Times in 2013, SBI life Insurance Company was voted ‘The Most Trusted Private Life Insurance Brand 2013’. The company works on its mission to emerge as the leading company which offers a comprehensive range of insurance products to customers and to ensure high standards of customer satisfaction through service efficiency. Being true to its mission, the company offers a wide range of products which include both traditional as well as unit linked plans for conservative as well as risk-taking individuals respectively.

SBI Life Child Plans

SBI Life Insurance Company currently offers two types of child insurance plans. One is a traditional plan while the other is a Unit Linked Insurance Plan. Let us take a look at each of these plans with a detailed understanding of the plan features and benefits.

SBI Life Smart Champ Insurance Plan

This is a traditional participating child plan with the following features:

  • The plan participates in the profits of the company through earning bonuses which are given in the form of Simple Reversionary Bonus and Terminal Bonus.
  • There is an inbuilt Accidental Total and  Permanent Disability Rider and Waiver of Premium Rider under the plan providing an enhanced coverage
  • Guaranteed Smart Benefits are paid under the plan for four years after the child crosses 18 years of age and attains 21 years. The benefit is payable at the rate of 25% of the Basic Sum Assured chosen by the policyholder and 25% of the accumulated Simple Reversionary Bonuses. The benefits are paid in the last four years of the plan making it a money back type of plan.
  • On maturity, the last installment of the above mentioned Guaranteed Smart Benefits, vested bonuses and Terminal Bonus, if any, is paid to the policyholder.
  • On death or disability of the insured whilst the plan is in its continuance, a lump sum amount is paid to the nominee which will be 1.10 or 1.25 of the Single Premium paid or 5 / 7 / 10 times the annual premium paid depending on the age of the insured and the term of the plan. Moreover, all the future premiums will be waived off and paid by the company while the plan continues. The Guaranteed Smart Benefits will be payable as and when they fall due and the plan will also earn bonuses
  • The discounted value of the Smart Benefits may be availed by the nominee in the last 3 years of the premium payment
  • Rebates in premium are allowed for higher coverage levels of Rs.2 lakhs and above
  • Loans can be availed under the plan which should be a maximum of 90% of the Surrender Value

Eligibility Details

 

Minimum

Maximum

Entry Age

Policyholder - 21 years

Child – 0 years

Policyholder – 50 years

Child – 13 years

Maturity Age

-

Policyholder – 70 years

Child – 21 years

Policy Term

21 years – entry age of the child

Sum Assured

Rs.1 lakh

Rs.1 crore

Annual Premium Amount

Single Pay – Rs.66, 000

Regular Pay – Rs.6000

Based on maximum Sum Assured

Premium Payment Term

Single Pay or Limited pay for (21 – entry age of the child) years

Premium Payment Frequency

Yearly, half-yearly, quarterly, monthly or Single Pay


Sample Illustration

The following table shows a sample illustration of the plan.

Age of the Life Insured

35 years

Age of the Child

6 years

Policy Term

15 years

Premium paying term

12 years

Sum Assured

Rs.5 lakhs

Premium

Rs.41, 410

Guaranteed Smart Benefits

Rs.125, 000

Non-guaranteed Simple Bonus @4%

Rs.28, 500

Non-guaranteed Simple Bonus @8%

45, 000

 

SBI Life Smart Scholar

A unit linked child plan which promises the following features and benefits:

  • The parent is the life insured but the plan is taken for the benefit of the child
  • Premiums can be paid either in lump sum under the Single Pay option or for a limited period under the Limited Pay option of premium payment.
  • When the plan completes its tenure, the fund value on the date of maturity is what the policyholder is entitled to. The policyholder may exercise his choice to receive the benefit at once on maturity or if he wishes to remain invested with the company, the proceeds can be withdrawn in instalments spread over 5 more years after maturity
  • When the insured person who is the parent faces death within the term of the policy, the Sum Assured is paid to his nominee which should not be lower than 105% of the premiums paid during his lifetime. There will be no requirement of continuing the premium payments because the company will do so on part of the policyholder and the fund will continue to grow. When the term completes, the fund value in the fund account will be again paid to the policyholder’s nominee
  • Additional Loyalty Additions are paid under the plan after specified intervals. The Loyalty Additions are calculated as 1% of the average fund value on the first day over 24 months prior to the date of calculation.
  • There is an option to choose from among 7 funds for investment of the premium. The funds include Equity Fund, Top 300 Fund, Equity Optimizer Fund, Growth Fund, Balanced Fund, Bond Fund and Money Market Fund
  • One partial withdrawal which will be free is allowed every year provided the minimum amount is Rs.5000 and maximum is 15% of the fund value
  • Premium redirection facility is allowed from the second policy year to redirect future premiums into a different fund than that chosen at the time of policy inception
  • Switching between funds is also allowed with two free switches every year
  • There are inbuilt riders under the plan. The Premium Payor Waiver Rider waives the future premiums when the insured dies during the tenure of the plan and the Accidental Benefit Rider with total and permanent disability benefit provides an additional lump sum amount in case the insured suffers accidental death or total and permanent disability.

Eligibility Details

 

Minimum

Maximum

Entry Age

Policyholder - 18 years

Child – 0 years

Policyholder – 57 years

Child – 17 years

Maturity Age

Policyholder – NA

Child – 18 years

Policyholder – 65 years

Child – 25 years

Policy Term

8 years

25 years

Sum Assured

Single Pay – 1.25 times the single premium

Regular Pay – higher of 10/7 times the annual premium or 0.5/0.25*policy term *annual premium

Single Pay – 1.25/5 times the single premium

Regular Pay – 20 times the annual premium

Annual Premium Amount

Single Pay – Rs.75, 000

Limited Pay – Rs.24, 000 for a PPT more than or equal to 8 years

Limited Pay – Rs.50, 000 for a PPT of 5 – 7 years

No limit

Premium Payment Term

Single Pay or Limited pay for 5 - 25 years

Premium Payment Frequency

Yearly, half-yearly, quarterly, monthly or Single Pay


 Applying for a Child Plan from the company:

Online

The company offers specific plans which are available online only. The customer only needs to log into the company’s 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

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

When Should a Child Plan be Taken?

As per the insurance dictionary, a child plan is an endowment policy where the parent is the policyholder and the child is the beneficiary. A child plan can be a money back plan, i.e. parts of the sum assured is received at various points in the child’s life like her school admission, college admission, marriage, etc. Alternatively, a child plan can be a typical endowment plan where a lump sum amount of money is received at a specific juncture of the child’s life and used to pay the bills at that time (college admission, marriage, etc).

A child plan is nothing but an endowment policy that helps you in meeting the expenses related to your child’s education and well-being. A child plan can be converted into a money back plan and portions of the sum assured can be received at different milestones of the child’s life. A child plan helps you in planning your finances wisely so that at no one point in life are you financially over-burdened. You can save over a period of time, in small amounts and still build up a fund large enough to face every testing situation with ease. So start saving early and you will have more time to create the desired fund.

How early can I buy a child plan?

Most child plans are available for children aged 3 months or above. So as soon as your daughter or son turns 3 months, you can purchase the plan. There are many advantages of buying a plan that early, as you can start saving and also make provision for each and every milestone of your child’s life. In India kids begin to go to school at 3 years of age. So if you buy the plan when the child is 3 months, by the time she is 3 years and ready to start school, you will also have the funds ready to pay for the school admission fees, something that wouldn’t have been possible had you bought the fund when she was 5.

What is the maximum till which a child plan can be purchased?

You can buy a child plan for any child till the age of 17. If your son or daughter is 18 or above, you can no longer get a child plan for them.

What is the ideal time to buy a child plan?

According to experts, the costs of education will continue to soar, just like they have in the recent past. An MBBS course in an Indian university cost just about Rs.2 lacs 20 years ago. Today it costs between Rs.45-70 lacs. So one can only imagine how much the figures would be in another 20 years! Your child may decide to even go abroad when he is 15 years old, and then it would be very difficult to arrange the funds. So as we can see, the future education costs of children cannot be predicted and so as a parent you need to have every possible provision. As a result, a child plan should be bought as early as possible to set up a healthy fund that would suffice all the demands of your child’s educational career.

Do not wait till it’s very late. If at 15 your son announces he wants to go to the US the following year, you will be left in a lurch arranging the funds. So since the future cannot be predicted, save when you can and keep the finances ready. A child plan would also secure your child’s future in your absence and since death too cannot be predicted, keep the plan ready from the earliest time possible.

SBI Life Child Plans - FAQ

1. How to pay premium? What are the modes of payment available?

There are 10 modes to pay your SBI Life Insurance premium namely:

  • Direct Remittance At Sbi Life Branch By Post Or Courier
  • Electronic Clearing Service (ECS) – Mandate
  • Direct Debit
  • Standing Instruction On Your Credit Card
  • Online Payments
    • Through State Bank Group Atms
    • Payment Through Visa Bill Pay.Com
    • Online Payment Of Premium Through Sbi Life Website
  • Si-Eft For State Bank And Associate Banks’ Account Holders
  • Payment Through Point Of Sales (Pos) Terminals At Select Sbi Life Branches
  • Payment Through Easy Access Mobile Application
  • Pay Premium In Cash At Authorized Collection Centers
  • Nach (National Automated Clearing House)

NACH is a newly launched service that works on the same principle as that of ECS, which requires filling in a form and getting registered before availing this facility.

2. How can I check policy status for SBI Life child plans?

For checking your policy status online, login to e-portal . You need to enter customer ID, date of Birth and policy number. The details of the policy along with the status is displayed on the next screen.

Alternatively avail the SMS facility if you are a registered user.

SMS POLVALUE <space>< policy number> and send it to 56161 or 9250001848.


3. What is the policy renewal process for SBI Life child plans?

Renewal of policy can be done by the following modes:

  • Online
  • Through SMS
  • Through SBI Brach
  • By Cash

For renewal process, after login into your account, click on the ‘Renew Policy’ tab to proceed with premium payment.

If you want to get the renewal details by mobile,

SMS RENDET to 56161 or 9250001848.

Alternatively, you can renew the process by using the kiosk in the SBI ATM and select the option for renewal process.


4. What is the company’s process to settle claim for SBI Life child plans?

The procedure for settling claim through SBI life Insurance requires intimating the nearest branch by submitting the list of documents as specified in the website. After the documents are verified, the claim is settled as soon as possible. In case one requires additional help or further clarifications, one can write to claims@sbilife[dot]co[dot]in


5. What is the policy cancellation process for SBI Life child plans?

The policy cancellation process requires you to submit a duly filled surrender form along with relevant documents in the nearest SBI branch in your city. Upon receiving and verifying the documents, the policy is deemed cancelled as per bank accounts record. The premium refund is calculated on NAV value prevailing at the current market rate, if you submit the policy before 3:00 PM , else next day’s NAV value is applicable.

Reviews for SBI Life Child Plans

TOTAL REVIEWS (1)
Sourabh
Bengaluru
February 04, 2016

"Excellent"

Recently i bought a life insurance for my child from SBI Life Insurance. The policy having great plans and premiums. The policy coverages are really good and the services are good in future. The claims are the best amoung all. Really happy with the policy for my loved onces.
Plan Name: eWealth Insurance
Agent Code: BBE06765