IDBI Federal Childsurance Savings Protection Insurance Plan

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Introduction/Overview

IDBI Federal Childsurance Savings Protection Insurance Plan is a traditional participating Child plan which takes care of the child’s needs even if the parent is not around.

Key Features

  • It is a participating plan with limited and regular premium payment option
  • Guaranteed Annual Payouts and bonuses boost the corpus
  • The term of the annual payouts depend on the policy term

Benefits

  • Guaranteed Annual Payouts are paid out in the last 3 years @ 20%, 20% and 60% of the Maturity Sum Assured or in the last 5 years @ 20% every year
  • On maturity, the last instalment of the Annual Payouts along with the vested reversionary bonuses + terminal bonus, if any, is paid to the policyholder.
  • On death of the policyholder, the death SA is paid immediately. Future premiums are waived off and are taken care of by the company.
  • The child will receive the Guaranteed Annual Payouts as usual even if the policyholder is not around
  • Vested Reversionary bonuses and terminal bonus, if any, is paid at the end of the policy term
  • The Death Sum Assured is defined as the higher of the maturity SA or 10 / 7  times the annual premium
  • Income tax benefit on the premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

18 years

40 years for Regular Pay

50 years for Limited Pay

Entry Age of Child (Last Birthday)

One month

18 years

Maturity Age (Last Birthday)

28 years

65 years for Regular Pay

75 years for Limited Pay

Policy Term (PT) in years

10

25

Premium Paying Term (PPT) in years

Equal to policy term in Regular Pay

Policy Term – 5 years for Limited Pay

Premium Paying Frequency

Annual and monthly

Yearly Premium

10,000

No limit

Sum Assured

Depends on the minimum premium chosen, age and term

No limit

 

Details About Premium

Annual premium in Rupees for a Sum Assured of 5 lakhs

Age

Policy Term/PPT

Sum Assured

Premium

30 years

10 / 10

250,000

26,988

40 years

10 / 10

250,000

27,463

 

Policy Details

Grace Period: 15 days’ grace period is allowed for premium payment in monthly mode and 30 days in annual mode. If policyholder fails to make payment within the grace period, the policy lapses

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy after 2/3 full years’ premium has been paid. The Surrender Value will be higher of the Guaranteed Surrender Value or the Special Surrender Value.

GSV = GSV Factor * Basic premiums paid including the GSV of Vested Bonuses

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Inclusions

  • Loan is not available under the plan

Additional Features or Riders

  • Discount in premium for female lives

Exclusions

  • In case of suicide committed within 12 months of policy inception only 80% of premiums paid are returned to the nominee. In case of suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid.

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person.