Bajaj Allianz Child Plans

Moreover, the company boasts of a strong foundation of sales force which helps to increase the company’s market share in the insurance sector. The range of products offered by Bajaj Allianz include Protection plans in the form of term plans, Child education Plans, Savings and Investment Plans which are available in both conventional or ULIPs form and pension plans. With a wide range of products, the company strives to meet every individual’s insurance related requirement at a single source.

What are Child Plans?

Child plans are developed on the concept of the child’s future’s protection if the parent is not around to provide for that himself. These plans generally insure the parent while there may be plans which actually insure the child’s life. If the parent meets with an untimely death, the plan runs without any requirement of future premiums which will be paid by the insurance company. The benefits payable under the plan will be paid as promised without being affected by the death of the insured. If the child’s life is insured the company might keep a waiting period of a few years at the start of the policy where no coverage will be provided. This period is called the Deferment Period. Under such plans, the child will become the owner of the policy once he crosses 18 years of age.

Bajaj Allianz Child Plans

Bajaj Allianz Life Insurance Company has two plans in its kitty. The plans are discussed below for a clear understanding with detailed features and benefits.

Bajaj Allianz Lifelong Assure

A traditional whole of life plan which can be taken for the welfare of the child. The features of the plan are as follows:

• The policyholder is covered up to the age of 100 years since it is a whole life plan.

• The plan participates in the profits of the company through earning bonuses and the premium under the plan is payable for a limited tenure only.

• Cash Bonus is declared under the plan from the end of the 6^th policy year

• A Guaranteed Cash Back payable @ 3% of the Sum Assured is paid every year after the end of the Premium Paying Term and till the policy mature, i.e. the policyholder turns 99 years of age

• If the insured dies during the tenure of the plan, a benefit which will be higher of 10 / 7 times the annual premium or 105% of total premiums paid till the date of death or 200% / 250% or 300% of the chosen Sum Assured depending on the premium paying term chosen is payable to the nominee

• If the plan mature, i.e. the policyholder turns 100 years of age, 200% / 250% or 300% of the chosen Sum Assured depending on the premium paying term chosen and any Terminal Bonus is payable to the policyholder

• The policyholder has a choice to avail the death or maturity benefits in instalments over a period of 5 or 10 years

• Loan can be availed under the plan up to a maximum of 80% of the Surrender Value

• The plan also promises rebates in premiums for choosing a higher Sum Assured level of Rs.1 lakh and above.

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Eligibility Details

Child Savings Plan vs Sukanya Samriddhi Yojana Scheme and Public Provident Fund

Bajaj Allianz Young Assure

A traditional child insurance plan with the following features and benefits:

• The plan participates in the profits of the company by way of earning bonuses.

• The premium under the plan can be paid for the entire tenure under the Regular Pay option of premium payment or for a limited tenure under the Limited Pay option of premium payment.

• Guaranteed Additions are payable under the plan which is expressed as a percentage of the Guaranteed Maturity Benefit and depends on the Premium Paying Term of the plan.

• On maturity, the Guaranteed Maturity Benefit along with the Guaranteed Additions, vested bonus, interim bonus and any Terminal Bonus is payable can be availed as cash installments in three options

• Under the first option, vested bonuses including interim bonus and the accrued Guaranteed Additions are paid on the date of maturity. 50% of the Guaranteed Maturity Benefit is paid one year after the maturity date and 55% of the Guaranteed Maturity Benefit and any Terminal Bonus are paid 2 years after the maturity date.

• Under the second option, vested bonus including interim bonus and Guaranteed Additions are paid on the date of maturity. Thereafter, 22% of the Guaranteed Maturity Benefit is paid after one year, 25% is paid after two years and 28% is paid after three years. Four years post the maturity date, 34% of the Guaranteed Maturity Benefit and any Terminal Bonus are paid

• Under the third option, vested bonus including interim bonus and Guaranteed Additions are paid on the date of maturity. Thereafter, 12% of the Guaranteed Maturity Benefit is paid after one year, 15% after two years, 18% after three years, 20% after 4 years and 23% after 5 years. After 6 years, 25% of the Guaranteed Maturity Benefit and any Terminal Bonus are paid

• If the insured dies during the tenure of the plan, higher of the chosen Sum Assured or the Guaranteed Maturity Benefit subject to a minimum of 105% of all premiums paid till the date of death is payable. Thereafter, the policy is converted to a fully paid-up plan. The Guaranteed Additions and the bonuses accrue as and when they fall due and on maturity, the maturity benefits is paid.

• The plan has an inbuilt Accidental Permanent Total Disability Benefit wherein, if the insured suffers a disability, the policy is converted to a fully paid-up plan. The Guaranteed Additions and the bonuses accrue as and when they fall due and in case of death due to the disability, the death benefit is paid.

• The maturity benefit can also be taken in a lump sum instead of choosing any of the above mentioned options.

• Loan can be availed under the plan up to a maximum of 90% of the Surrender Value

• The plan also promises rebates in premiums for choosing a higher Sum Assured level of Rs.1 lakh and above.

• The premium payment frequency chosen at inception can be changed anytime.

• The plan promises five additional riders which can be taken for a more comprehensive coverage. The riders available are:

• Bajaj Allianz Accidental Death Benefit Rider

• Bajaj Allianz Accidental Permanent Total / Partial Disability Benefit Rider

• Bajaj Allianz critical Illness Benefit Rider

• Bajaj Allianz Family Income Benefit Rider

• Bajaj Allianz Waiver of Premium Benefit Rider

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Eligibility Details

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Applying for a Child Plan from the company:

1. 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

2. Intermediaries

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

Why do you need a child insurance plan?

We want to give the best of everything to our children whether in terms of clothes, lifestyle, co-curricular activities, school, education, etc. We provide for all our child’s requirements so that our child remains happy, even if it comes at a cost of sacrificing our happiness. But what will happen to our child if we are not around? Who will support our bundle of joy financially if we do not make provisions for them ourselves?

Investing for the child’s future takes a prime spot of importance in our financial portfolios but when it comes to choosing the right mix of investments; our planning might fail if we do not include the quintessential items in our list. A child insurance plan is that item, in the absence of which, planning for the bright future of our child is a waste. A child insurance plan helps us in a complete financial planning for our child. These plans need to be taken for a longer term so that when our child reaches the defining moments of his life, the plan will provide the much-needed finance. To illustrate my statement with a sentence, let’s say that a money-back child plan is bought when the child id 5 years old with a term of 20 years. The plan promises 25% of the Sum Assured payable after 10 years and thereafter in the 15th a year. On maturity, 60% of the Sum Assured is paid with bonus.

1. Case 1 – the policyholder, who is the parent, survives till maturity.

   For a Sum Assured of Rs.10 lakhs, he will get Rs.2.5 lakhs each after the 10thand the 15th year. At this time the child is aged 15 and 20 years respectively. The money received can be used to pay off the education fees which the child might face for pursuing higher education.

2. Case 2 – the parent dies in the 12th year

   On death, 100% of the Sum Assured will be paid and the plan will continue. The money-back benefits will be paid again in the 15th year and the plan will mature when the child attains 25 years. Since, the plan continues, the child does not face any problem in providing for his higher education and the money-back benefit can be utilized for the same.

   Thus, by planning ahead, the child’s parent ensured that his death would not affect the child’s future since he invested in a child plan. The plan provided the necessary benefit on death and again on maturity which helped in funding the child’s higher education. A child plan, therefore, is an important requirement of the hour and should be invested in.

Bajaj Allianz Child Plans - FAQs