Edelweiss Tokio Child Plans

What are Child Plans?

These types of plans are aimed towards creating a secured fund for the child’s future which will not be affected by the death of the earning parent. These plans usually have some common points which are mentioned below:

• Either the child or the parent's life can be covered under the plan. Usually, the parent's life is covered and the individual needs to have a minor child.

• If the child’s life is insured, the company keeps a deferment period in the form of some initial years where the company does not extend insurance coverage even though the plan starts. If the child dies within this period, the only benefit payable is the premiums paid to date.

• Also, a child being a minor cannot enjoy the plan’s ownership which rests with the parent till the child turns 18 years of age. Following this, the plan vests in the child’s name and he/she become the policyholder.

• If the parent is insured, there is an added waiver benefit that is inbuilt within the plan. Under this benefit, in the event of the insured's death, subsequent premiums are waived off and are paid for by the company while the plan remains intact.

Edelweiss Tokio Life Child Plans

Edelweiss Tokio Life Insurance Company currently does not offer a plan that specifically targets children. However, the company hosts several comprehensive ULIPs and insurance cum savings plans with Guaranteed Returns, which can provide for the financial security of the child even in the absence of the parent. The benefits of these plans allow parents to accumulate enough wealth to pay for school fees, meet educational expenses abroad, and other important needs of growing children.

Let us take a detailed look at some of the plans recommended by Edelweiss Tokio that parents can purchase to secure the future of their children. These plans come with unique features to offer comprehensive protection to policyholders’ children.

Edelweiss Tokio Life Wealth Secure Plus

The Wealth Secure Plus plan is a ULIP offered by Edelweiss Tokio that allows policyholders to grow their wealth and save for their children's education. It serves as a child education savings option in addition to protecting the child's future from the policyholder’s unfortunate demise. Wealth Secure Plus comes in three variants, viz. Base, Life Partner, and Child. The Child variant comes with the following benefits and features:

1. Plan Options

   Under the child variant of the policy, you can either opt for Individual life cover or Joint life cover. Child individual life cover is for policyholders who have children in the age bracket of 0 – 15 years. Child joint life cover is applicable for married policyholders with children in the age bracket of 0 – 15 years. 

2. Policy Term / Premium Paying Term 

   Customers have the flexibility to choose from a policy term of 5 to 25 years. The premium paying term options are Regular Pay or Limited Pay, payable monthly, quarterly, semi-annually, and annually.

3. Fund Options / Investment Strategies 

   The plan acts like a child education insurance scheme given its wealth accumulation feature through investments in the market-linked fund. You can choose from 7 different fund options and switch between these based on your risk appetite. 

   Its self-managed investment strategy allows policyholders to make unlimited switches between the funds. Alternatively, it also offers the option to choose a life stage & duration-based investment strategy.

4. Death / Maturity Benefits 

   Based on the chosen plan option, Individual or Joint Life, the death benefit is payable to the nominated child on the death of the insured or the spouse (in the case of the latter). A sum of the future premiums payable is added to the fund value as a lump sum amount. This means that the policy continues without the need to pay for future premiums. 

   If the life assured survives the policy term, (s)he will be entitled to the fund value calculated on the date of maturity as a lump sum payout or as per the settlement option chosen. 

5. Additions to the Fund Value

   Loyalty additions are added from the 6th policy year till the end of the premium paying term. Booster additions are added to the fund value at the end of the first 10 policy years and then on every 5th policy year till the end of the policy term. Maturity addition is defined as a percentage of the fund value and is added at the time of policy maturity. These additions drive further savings towards creating a child education corpus. 

Edelweiss Tokio Life Wealth Plus

This one is another unit-linked life insurance policy that can help in your child's planning. Investing in a plan such as this allows you to create a generous corpus that can fund various requirements. Returns from a combination of debt and equity funds can be used towards your child's international education, their high-school fees, and also support their interests. Key benefits of the plan are:

• Rising Star Benefit - If you wish to use this policy as a child plan, you should consider adding the Rising Star Benefit at policy inception. On opting for this benefit, the life insured becomes the child, and the parent is the policyholder. The benefit offers an additional lump sum amount in the event of the unfortunate demise of the policyholder. This is in addition to the death benefit applicable against the death of the life insured (the child). The total amount of future premiums due is credited to the fund value and the life cover on the child continues. 

• Fund / Investment Options – You are given the option to invest your premiums in either Life Stage and Duration Based Strategy or Self-Managed Strategy. The former ensures that your investments are moved from high-risk (equity-based) funds to low-risk (debt bond) funds as you age and per the investment duration. This is done to keep in line with your risk appetite. The latter allows you to switch between 7 fund options (a combination of debt and equity funds) as per your choice and in any proportion. 

• Additions – Extra Allocation and Premium Booster features are additional sums added to your fund value. These help you create a larger corpus for your child's plan. 

Edelweiss Tokio Life Premier Guaranteed Income

It is a non-linked saving plus life insurance policy that provides comprehensive financial protection to the deceased policyholder's family. The plan also covers the financial loss as a result of the life assured being diagnosed with a critical illness. The lump-sum payout and the guaranteed income make sure that a child's education costs are met, in addition to maintaining a regular stream of capital to serve different needs. Some of its popular features are:

• Plan Options – The plan comes in 4 different plan options based on the payout option. These are Lump Sum, Short-Term Income, Long-Term Income (with or without a lump sum benefit), and Retirement Income (Level Income or Increasing Income). Along with these, it comes with an optional Family Income Benefit against critical illness and death of the life assured. 

• Death / Maturity Benefit – Death benefit is payable as a lump sum amount or as regular income based on the plan option chosen. The capital can be used towards child planning or for child education savings, among other requirements. Maturity benefit is payable in a lump sum in the case of plan options Lump Sum and Retirement Income. The Short-Term Income doesn’t offer any maturity benefits.

• Optional Riders – You are given a choice of 6 riders. These are:

• Accidental Death Benefit Rider

• Accidental Total and Permanent Disability Rider

• Critical Illness Rider

• Waiver of Premium Rider

• Payor Waiver Benefit Rider

• Hospital Cash Benefit

• Loan Benefit – The plan allows policyholders to avail of loans against a percentage of the sum assured to take care of urgent liquidity needs. The loan can help in financing your child’s education, studies abroad, or medical emergencies, etc. 

The income benefit that comes with this plan ensures that the family does not run out of capital to support themselves on the unfortunate death of the policyholder. Dependents such as parents, children, the spouse can use the money to sustain their lifestyle. 

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

Other Edelweiss Tokio Life Insurance Plans with Child Benefit Features

1. Edelweiss Tokio Life Wealth Ultima

   This is another ULIP that you can use as a child plan towards securing the lives of your children financially and in the event of your demise. It allows you to systematically grow your wealth while protecting you from market fluctuations. The plan comes with an optional Little Champ Benefit which makes sure that the plan continues even on the death of the parent (the policyholder). Further, future premiums are waived off and credited by the insurer to the fund value. 

   Thus, this plan protects the child against the death of the parent, offers life cover for the child (in the case of Little Champ Benefit), and allows opportunities to grow savings. 

2. Edelweiss Tokio Life Total Protect Plus

   This is a traditional term life insurance cover that protects the interests of your loved ones on your demise. It comes with the Child’s Future Protect Benefit that offers additional life cover till the time your child attains the age of 25. On opting for this benefit, the death benefit is paid to the child along with the additional sum assured under this optional benefit, if death occurs before the child turns 25. 

   The funds can help a child complete their education and build a career for themselves even in the absence of an earning parent. 

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.

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Applying for Child Plans through PolicyBazaar

• On the PolicyBazaar homepage, click on Child Plans under the Personal tab.

• Click on New Quotes to compare.

• Fill in your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. Based on your payout amount, you will get an estimate of your premium. Click on Continue.

• Fill in your name, email address, city, country code, and mobile number. Click on 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 on 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 on Proceed.

• This will take you to the insurer’s website. Fill in the necessary details to buy the plan.

Importance Of a Child Plan

A child insurance plan is an important financial tool in your financial portfolio if you want to provide for your child in their future years. Such investments can give you good returns to ensure that your child gets the future that they deserve. 

• The uniqueness of the plan lies in the fact that the plan continues even after your death, where most of the other insurance options stop. In the case of other insurance schemes, the policy stops on the death of the policyholder; therefore, the investments cease to continue and grow. On the contrary, child plans ensure that the plan benefits continue till maturity.  

• In a child plan, premium payments after the death of the policyholder are made by the insurer to keep the policy in force. This ensures that the child receives life cover as well as increased savings, without having to struggle to keep the policy in force.  

• The maturity date can be set to coincide with a child's important milestones in the future like his/her graduation or higher studies. The payout on maturity can then be used to fund future educational needs. 

• You can also save taxes both on the amount you contribute as premiums under the plan and also the fund you receive either on death or maturity. The respective Income Tax Act Sections 80C and 10(10D) make it possible.

It is best to buy a child plan when you have a minor child and plan with a longer tenure. If the plan is a traditional one, a longer tenure will be required. Even if it is a unit-linked insurance plan, a longer tenure will ensure a higher corpus. This has primarily two advantages. First, you will have to save a smaller amount over the years. Secondly, the power of compounding will increase the fund generated at the end of a long tenure. 

So, start planning and buy a plan when your child is still young.

Edelweiss Tokio Child Plans - FAQs