Pramerica Child Plans

Pramerica Child Plans

Two types of child plans offered by Pramerica Life Insurance Company which are traditional plans. The plans are:

What is a child plan?

A child plan is one insurance plan which has been specifically designed only for the benefit of the child’s future. When, as a parent, you decide to invest in a child insurance plan, you undertake to assure that your child’s future will be secured no matter whatever your future holds. If you have a minor child, buying a child insurance plan becomes all the more necessary because the child needs your protection. Child plans which the insurance companies sell have a very unique design which is done only considering the child’s welfare. These types of insurance plans are either offered as a traditional plan or as a unit linked insurance plan. Traditional plans are those types of plans which have a long-term perspective and they keep the premiums for a longer tenure. Up on maturity, a fixed benefit is paid which is stated at the tie of buying the plan. If the policyholder dies during this tenure, a fixed benefit is also payable which is called a death benefit. Traditional plans also earn bonuses which further increase the child’s fund. Unit linked plans are linked to market returns where the premiums paid are invested in the market. As the market grows, so does your money and on maturity or on earlier death the fund value is paid. Child plans have a unique feature of an inbuilt rider which is called the Premium Waiver or Waiver of Premium Rider. These riders are useful when the parent’s life is insured under the plans. The rider states that if the parent of the child dies amidst the plan continuance, the child will not be deprived of the benefits earlier promised. The premiums which are due will be paid by the insurance company and the plan will run on the original terms. A specified amount of death benefit will be paid to the nominee immediately as death occurs. Thereafter, the plan continues by the payment of premiums by the insurance company. As the plan matures, the maturity benefit will again be paid and then the plan will terminate. So a child insurance plan pays two benefits when death occurs making it ideal for the child’s future financial requirement.

Generally a parent is insured under the plan but sometimes, the insurance plan may be designed to cover the life of a minor child. In these cases, the child will be the life insured and the parent will be the policyholder who will be supposed to pay the premiums. Since the parent pays the premiums, if he dies, the inbuilt premium waiver rider will kick-in here also. Again the premiums will be contributed by the insurance company while the child will be able to enjoy an insurance cover. There are two additional clauses in this type of plan. One is the deferment clause whereby the child is not immediately covered by the plan. There will be deferment period or the waiting period in the initial couple of years during which though the plan will be in force, the Sum Assured coverage will not. If the child dies during the deferent period, the company will only be liable to return the premiums which were paid till the death of the child and not the Sum Assured amount. After the deferment period is over, the risk cover will commence. Another clause is the Vesting clause. Since the parent is paying the premium and the child is a minor, the parent is the policyholder. On Vesting, the child becomes the policyholder of the child plan. After Vesting, the child can also make a nomination in the plan which was not required earlier. The Vesting date is the policy anniversary which falls after the child attains 18 years of age.

Pramerica Life Insurance Company Limited is headquartered in Gurgaon and is one of the fastest growing life Insurance companies. A wide range of life insurance solutions is provided for both individuals and groups taking care of the various financial needs such as retirement planning, savings and wealth creation and securing the child’s future. At present it has 72 branches, 2707 employees. It is a joint venture between Dewan Housing Finance Corporation Limited (), India’s second largest private sector housing finance company and Prudential International Insurance Holdings, Ltd. (PIIH), a fully owned subsidiary of Prudential Financial, Inc. (PFI), a financial services leader headquartered in the U.S. DPLI represents the coming together of two renowned financial services organizations with a legacy of business excellence spread over decades. The life insurance joint venture agreement between the two partners was signed in July 2013. At DPLI, they are committed to providing quality financial advice to our customers. They also guide and enable our customers to make informed insurance decisions to meet their life’s short term and long term financial goals. 

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A traditional child insurance plan protecting the child’s financial future the features include:

• This plan is eligible to earn bonuses declared by the company
• There are two options of paying the premiums which are Regular Pay and Limited Pay
• When the plan matures, the value payable is 125% of Sum Assured + the accrued bonuses and any available Final Bonus
• If the insured dies, the Death Sum Assured which is higher of 10 or 7 times the yearly premium depending on the age of the insured or 125% of basic Sum Assured is paid to the nominee provided a minimum of 105% of premiums paid. Interim Bonus and any Final Bonus is also paid with the Death Sum Assured.
• The policyholder has a choice to take the death benefit either in lump sum or in instalments. In the latter case, 50% of the benefit is paid immediately on death and thereafter, 1% of the basic Sum Assured is paid monthly post death till the end of the term for a minimum of 36 months. Moreover, on maturity, 125% of the basic Sum Assured is again paid to the nominee
• Loans are available up to a maximum of 80% of Surrender Value

Eligibility Details

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Another traditional child insurance plan to take care of the child’s future. The features and benefits of the plan are as follows:

• Premiums under the plan are required to be paid for a limited tenure only.
• Annual Guaranteed Additions accrue every year @30% which also increases by another 10% after every 3 years
• On maturity, the basic Sum Assured multiplied by the Guaranteed Maturity Factor is payable to the policyholder.
• The Guaranteed Maturity Factor varies with the plan tenure and is paid @150% if the plan term is 10 years, 175% if the term is 15 years and 200% if the term is 20 years
• In case of death of the insured during the tenure of the plan, the Death Sum Assured which is higher of 10 or 7 times the annual premium depending on the age of the insured or the basic Sum Assured multiplied by the Guaranteed Maturity Factor is paid to the nominee subject to a minimum amount of 105% of all premiums paid till the date of death. The accrued Guaranteed Additions are also paid along with the Death Sum Assured
• The policyholder has a choice to avail the death benefit in lump sum or in instalments. In the latter case, 100% of the basic Sum Assured is paid immediately on death and thereafter, 2% of the basic Sum Assured is paid monthly post death till the end of the term for a minimum of 36 months. Moreover, on maturity, the basic Sum Assured multiplied by the Guaranteed Maturity Factor is again paid to the nominee
• Loans can be availed under the plan up to a maximum of 80% of the Surrender Value

Eligibility Details

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.

Other Plans :

          Pramerica life Insurance

          Pramerica Investment Plans

Pramerica Child Plans - FAQs

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

The following modes for payment are available for Pramerica Life Insurance:

• Online or NEFT transfer
• Through ECS
• Through Cash or cheque at select branch office.
• At SBI branches
• At Axis branches

For online transaction, please visit e-portal.

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

Policy status can be checked by login into the personal account with the help of user Id and password and then clicking on the Policy Details tab.

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

For renewing a policy under Pramerica Life Insurance, there are 2 basic options:

• Paying online
• Cheque pick up facility

For paying online, you must visit the portal with the user id and password and enter the policy number for renewing it. Online payment options with the aid of debit card, credit card and Net banking is available.

Cheque pick up facility can also be opted, wherein the company’s staff will get the cheque from your doorsteps.

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

For settling claim, you need to fill in and submit the mandatory documents as listed in the website for the particular category of claim, along with a cancelled cheque and a passport size photograph. Upon receiving the set of documents, the company endeavors to settle the claims within a time frame of 30 days.

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

For cancellation of any existing policy, you must fill in the surrender form , fill it up completely and dispatch it to the head office. Necessary documents needs to be attached with it such as mentioned in the policy along with surrender charges. Upon receiving of the above, the policy will be cancelled on records for the holder.

For new users, a period of 15 days is given, wherein you can surrender the policy, clearing stating the reason for the same.