Exide Life Child Plans

What is a child plan?

A child plan could be said to be like any other insurance plan where you have to pay premiums and the plan will provide you with the death benefit or the maturity benefit. However, the child plan differs from other insurance plans on various levels. Firstly, the plan is designed for the purpose of planning for a stable future of the child and secondly, there are differences in the features and aspects of the plan. To understand the plan, let us understand the plan’s different aspects which also give the plan a unique identification:

• The plan is available either on the life of the parent which can either be the mother or father or on the life of the child. Though most plans are designed on the premises of covering the parent’s life, some plans in the market also cover the child’s life who should be a minor.
• If the parent is being covered, it is mandatory that he or she should have a minor child for whose benefit the plan is being taken.
• The plan can be sold either as a conventional insurance plan or a market-linked insurance plan.
• Traditional plans may or may not earn bonuses depending on the plan’s design while unit-linked plans do not earn bonuses as they participate in the markets and the fund grows accordingly
• If the life insured is the parent and if he dies during the period of the plan, a death benefit is immediately paid to the nominee. This benefit is pre-defined. After the parent’s death, the plan will not end. It will continue and the insurance company will become liable to pay the premium on each due date. This is by virtue of the Waiver of Premium Rider which is inbuilt under the plan and makes the insurer liable to pay premiums in the vent of the insured’s death. When the plan matures, another benefit, called the maturity benefit, will be paid by the company to the nominee.
• In some plans where the life of the child is insured, there are two different concepts of deferment and vesting. Deferment is postponement clause and under this clause, the child’s life is excluded from the scope of coverage in the first few years after the policy starts. In case of death only the paid premiums are returned and the plan terminates. After the deferment period comes to an end, the child’s life is covered with the full Sum Assured and death after that period will result in full payment of the Sum Assured. Vesting, on the other hand, means reverting back of the ownership. When the plan is bought, the child is a minor and cannot be a legal owner of the policy. As such, the parent is assigned the ownership of the policy. When the child attains maturity, i.e. when he crosses 18 years of age, he is capable of becoming the owner of his policy. As such, the policy vests in the name of the child and he becomes the policyholder. Both deferment and vesting will occur on the policy anniversary which follows the child attaining the deferment age or the vesting age.
• The inbuilt premium waiver rider will also be applicable in case of the child’s life being insured. In this case, however, this rider promises the premium contribution on behalf of the parent who is the policyholder and not the insured, when the parent dies during the continuation of the plan.

Exide life Insurance Company Limited (previously known as ING Vysya Insurance Company Limited) started its operation from 2001-02 onwards and its headquarters is in Bengaluru. It has a customer base of over 10 lakh customers. Its distribution channel comprises of multi channels like Agency, Bancassurance, Alliances and Direct Channels. Exide Life Insurance is one of the leading life insurance companies in South India and is growing in other parts of the country. The main focus of the company is to provide long term protection and savings solution with a strong traditional product portfolio with a bonus track record.

Exide Life Child Plans

Exide Life Insurance Company sells child plans in three varieties. While two of the plans are traditional plans which offer guaranteed benefits, one plan is a unit linked plan which has an option of utilizing the plan as a child plan. Let us take a look at the plans sold by the company

Exide Life MeraAshirvad Plan

It is a traditional insurance plan to provide a stable future of the child even after the death of the parent.

• The premiums under the plan are supposed to be paid for a limited period only
• The term for which premiums are to be paid depends on the age of the child
• The Maturity Benefit can be availed in two options of Option A and Option B.
• Under Option A, after the completion of the Premium Payment Tenure, the Sum Assured is paid as money backs in Staggered Payouts @ 7.5% in the first two years after the Premium Paying Term and 10% in the next two years. On Maturity, 65% of Sum Assured is paid
• Under Option B, a Guaranteed Addition of 5% is added to the Sum Assured. Thus, on maturity, 105% of the Sum Assured is paid to the policyholder.
• In case of death of the insured during the tenure of the plan, all future premiums are waived off and the plan continues. If Option A is chosen then the Staggered Payouts are paid as and when they fall due and the remaining Sum Assured is paid on maturity or else under Option B, 105% of the Sum Assured is paid on maturity.
• On death, the benefit payable is highest of either 10 times the annualized premium or 105% of premiums paid until death.
• Loan is available under the plan if three full years’ premiums have been paid
• Discounts are allowed in the premium payable if the Sum Assured chosen is Rs.6 lakhs and above.

Eligibility Details

Exide Life New Creating Life Plan

Another traditional child plan which has the following features:

• Bonus is declared under the plan as it participates in the company’s profits
• The plan calls for regular payment of premiums
• The Death Benefit can be availed in two options of Option A and Option B
• On insured’s death, the benefit payable is defined as higher of 10 times the annualized premium or the base Sum Assured with a minimum benefit of 105% of premiums paid until death
• Under Option A, the entire death benefit is paid in lump sum to the nominee.
• Under Option B, 50% of the death benefit is paid in lump sum and the remaining is paid in instalments under the Family Income Benefit. Under the Family Income Benefit, 1% of the remaining benefit is paid as equated monthly instalments over a period of 5 years.
• Under both the death benefit options, all future premiums are waived off on death and the plan continues. The maturity benefit is paid when the plan reaches maturity
• The maturity benefit is defined as the aggregate of Sum Assured, vested bonuses and any Terminal Bonus subject to a minimum of 101% of premiums paid.
• The plan provides loan facility
• Discounts in premiums are allowed for higher levels of coverages
• There is a provision of adding two riders to the plan for a more comprehensive coverage namely Accidental Death Disability & Dismemberment Benefit Rider and ING Critical Illness Rider.

Eligibility Details

Exide Life Wealth Maxima Plan

A unit linked insurance plan where there is a feature of Maxima Child which provides for the welfare of the child in the event of the insured’s death. On maturity, the Fund Value is payable. In case of insured’s death, higher of Sum Assured including top-up Sum Assured or 105% of premiums paid including top-up premiums paid is paid immediately on death of the insured. Furthermore, all future premiums are waived off and are paid for by the insurer and on maturity, the Fund Value is paid.

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.

Applying For Child Plans through PolicyBazaar

1. On the PolicyBazaar homepage, click on Child Plans under the Personal tab.
2. Click New Quotes to compare and choose from top insurance providers.
3. 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.
4. Fill in your name, email address, city, country code, and mobile number. Click Continue.
5. 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.
6. After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
7. 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.
8. This will take you to the insurer’s website. Fill in the necessary details to buy the plan.

Exide Life Child Plans - FAQs

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

Exide Life Insurance Company offers 8 modes of premium payment namely:

• Cash payment at the branch
• Payment at the Axis Bank
• Payment at ING Bank
• Online Payment
• NEFT
• ECS
• Auto Debit
• Other options

In the other options you can make the payment at South Indian Bank branches, in Karnataka you can make the payment at Karnataka one counters through cash, DD, Cheque, Debit or Credit card. In Bangalore you can also make payment at Bangalore one counters by cash, DD, Cheque, or credit cards. You can also pay at HDONE counters with cash, cheque, or DD if you are in Hubli or Dhrwad.

For the online payment mode, the policyholder can pay via;

• Credit Card,
• Debit Card
• Net banking
• Bangalore one
• Tech process solution

2. How can I check policy status for Exide Life child pans?

You can check your policy sttaus if you are registered online. Simply login with your policy number and data of birth on MY LIFE tab to check the policy status. You may also check other policy details from the same link.

3. What is the policy renewal process for Exide Life child pans?

You can renew policy online.

Step 1: Simply enter your policy details and date of birth to log into your account

Step 2: Make payment via Debit/Credit card or Net Banking

Step3: Print the cyber recipt of the premium payment made

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

Please register your claim on Register Your Claim section. Just provide all the necessary information asked in various fields. You also need to use the claim intimation form which can be availed from the branch, or can download from the website or can be sent to you on your mail if you ask the same to the company on their mail id. Once all the documents are submitted to the company, it will provide you with a receipt and a reference number that can be quoted during all the communication. The claim will be settled within 7 business days.

5. What is the policy cancellation process for Exide Life child pans?

To cancel the policy, you can visit the branch personally with your policy documents and duly filled surrender form. Upon successful validation of the documents, the refund will be directly credited in your bank within 7 bsuiness days.