Aditya Birla Sun Life Child Plans

It is an undeniable fact that children are considered a valuable generation in society. Securing the child's life and happiness is vital for the peace of mind of adults. Parents always look forward to saving for the future of the children. Still, quite often, these precious plans do not materialize due to the unexpected nature of life.

Parents work hard to secure a bright future for their children. Registration of the child plan can be done in the child's name or even in the name of the parent. A child plan is a special and sacred type of life insurance. It is a valuable commodity for the success and prosperity of the family.

The policy should have the attributes of flexibility and superior functionality whenever the need arises for monetary reserves to cater to the needs of the child.

What Are Aditya Birla Sun Life Child Plans?

The ultimate objective of Aditya Birla Sun Life child plans is to provide substantial support for the child in case of the unfortunate death of the parent. Financial hardships may arise during providing for the education of the child.

Most often, it is the parent whose life is insured and on their death, the insurance company will pay the assured sum and all the required premium amounts which are due will be taken care of by the insurer.

In this way, the plan continues to be in the viable mode and the valuable maturity benefits will be paid to the policyholder as agreed before. The amazing benefits of Aditya Birla Sun Life child plans will be accumulated on the intended date and the policy will enter the liquidation stage.

This ensures that the policyholder's child or children enjoy total financial support in the important milestones of life.

Caring for a child is always delightful, but it also involves expenses. Whether you're bringing up an infant or paying for the child's school and college fees, the high quantum of money has to be spent due to the commercialization of education in modern times. When your child gets into the merit list of prestigious colleges, a lot of money is required to fulfil the financial commitments.

Aditya Birla Sun Life child plans empower policyholders to devise foolproof plans to secure the financial future of the children. Policyholders purchase Aditya Birla Sun Life child plans enables a strong sense of confidence and assertiveness in the lives of their children.

Education is the most important aspect of a child's life and is the best way to ensure the safety of your child. Higher education in India is a costly proposition and requires handsome amounts of money.

Why Choose Aditya Birla Sun Life Child Plans?

Children are always known to be bundles of joy. Right from birth to the time they become independent, a child can be regarded as your joy and pride. Parents give their children the best available care; right from when they were just infants to the stage, they reach higher educational institutions.

One of the valuable things in a parent's life is to ensure that the best possible prospects for their children. An investment in Aditya Birla Sun Life child plans ensures a high liquid amount to provide for the future expenses of the child.

Salient Features of Aditya Birla Sun Life Child Plans

Life insurance is a must for giving a bright future and education to children. Aditya Birla Sun Life child policies are particularly designed to create a safety net for the child during financial difficulties during the important stages of life. These policies come in two variants: Linked and Non-Linked. The following are the most important features:

  • Premiums

    The premium amount is payable at the beginning of the policy tenure. The policyholder can make a choice either to make a frequent periodical payment or for a specific period. The frequency term of the life insurance policy is quarterly, monthly, half-yearly and yearly. The amount of premium depends on the sum assured selected by the policyholder in the case of Aditya Birla Sun Life child coverage plans.

  • Assured Sum

    The insurance amount that is paid out to the beneficiary in the event of the death of the policyholder is known as the sum assured. In most of the cases, the assured sum will be more than 10 times the present gross income of the insured.

  • Maturity

    The maturity amount should be decided by taking all foreseeable future consequences into account. Assuming that the child is 8 years old, then the maturity period of that particular policy will be 10 years. The factors that are considered to arrive at the final maturity amount are the prevailing interest rates and market inflation.

    Policyholders should make sure to consider inflation and market interest rates to make sure that the final amount does not fall short of the expected levels. Child plans with a single premium option may not provide the required top maturity benefits and features. Hence policyholders need to check the child insurance policies available on the website of Aditya Birla and make the right decision.

  • Policy Tenure

    Aditya Birla Sun Life child policies are mainly meant for children in the age group of 18 to 21. In child insurance policies, the tenure can be chosen from birth till the time the child reaches a pre-determined age. Most insurance companies stipulate that the policyholder or the insured should not achieve the age of 70 years at the time of the maturity of the child insurance policy.

  • Segmented Pay-outs

    One of the unique features of Aditya Birla Sun Life child insurance plans is the provision to select the mode in which the child receives the benefits. The child can either receive the insurance benefits as a lump sum amount or in annual instalments. Such a provision will assist in paying educational fees, marriage expenses, college education expenses and can also provide start-up funds in case of starting of business endeavours.

  • Premium Waiver Advantage

    An intrinsic feature of child plans is that premium waivers are made applicable when the policyholder undergoes unfortunate death in a stipulated time duration. In such a situation, the assured sum will be duly paid to the beneficiary, while the premium amount for the remaining period will be borne by the policyholder.

    At the time of completion of the insurance policy's tenure, the maturity amount will be transferred to the hands of the policyholder/beneficiary according to the agreed terms of the insurance policy contract. In the case of a premium waiver not being provided automatically in the terms and condition of the plan, the policyholders should choose the option for a premium waiver rider.

  • Riders

    Certain riders are made available to the policyholders that provide for extra benefits out of the insurance policy. These riders are made available in three fundamental categories-critical illness, premium waiver, accidental death and disability. The premium waiver amount may already exist within your Aditya Birla Sun Life child coverage plan. So, it would be wise to check the policy documents beforehand and achieve peace in financial matters.

    The critical illness rider offers insurance coverage for a pre-defined set of major illnesses. The accidental death riders ensure that an additional sum is paid to the beneficiary in case of unexpected and tragic accidents that can lead to disability or death of the insured.

  • Partial Withdrawal Clause

    Aditya Birla Sun Life child plans allow a partial withdrawal clause to the insurance contract. Policyholders can benefit from this as they can make emergency withdrawals in case of pressing financial needs. These policies also have the added virtue of providing partial liquidity option to the policyholders.

  • Selection of Funds

    Child insurance policies also come in the variant of ULIP schemes. These schemes permit the policyholders to make the correct choice of investment funds such as debt, equity, hybrid funds along with the option of investing in money markets. The policyholders can have the option to invest their premium amounts in the Dynamic Fund Allocation plan or a Systematic Transfer Plan.

Core Benefits of Aditya Birla Sun Life Child Plans

Aditya Birla Sun Life child policies secure the bright future of the child. These plans remain in force even after the demise of the parent and the promised maturity benefit is paid in full. When a parent purchases a child plan, then an assured sum is paid to the child in case of death of the policyholder. Full benefits of the child insurance plan will be paid and these can be used to fund the education or marriage of the child.

  • Child insurance plans carry the flexibility of convenient fund disbursement in the event of insurance maturity or policyholder's death. The premium amount waivers are applied to the insurance policy in the case of the death of the insured within the period of premium collection.
  • Secured loans can be availed from major financial institutions and banks using child insurance plans as collateral. The insurance policies provide added benefit of tax refunds as per the provisions of the Income Tax Act. Policyholders are provided with the option of either selecting a ULIP plan or endowment plan.
  • The premium payment options are flexible and can be made at periodical intervals depending on the frequency chosen by the policyholder. Death benefits are paid to the nominee of the insured before maturity. The total accrued benefits of the policy are paid to the insured at the time of policy completion.
  • These policies do not carry the burden of premium payment when the insured individual undergoes death. The premium amount is waived in the case of the death of the parent. In this way, the child is assured of a maturity benefit.
  • Child plans can be customized with riders, whether it is a traditional or unit-linked plan. Various add-on riders can be purchased during the ongoing insurance policy to secure the financial future of the child. Different individuals have multiple and diverse requirements. Child plans allow policyholders to select the rider of their choice and increase the financial insurance coverage of the family through a child plan.
  • Child plans come with dazzling tax savings. The importance of child insurance plans can be exemplified by the fact that the purchase of these plans provides tax refunds under Section 80C of the Income Tax Act. The benefit of tax savings is up to a maximum of Rs 1.5 lakh. Besides, the death benefit or maturity amount received under the Insurance plan is entirely tax-free.
  • Financial corpus funds can be created by purchasing child insurance plans. Financial coverage is provided in case of premature death, and this ensures financial protection for the child.
  • Disciplined Savings are guaranteed by child insurance plans. Child Plans allow the policyholders to initiate disciplined savings for meeting the future life commitment of their children. The premium payment mode every month in child insurance plans offers a similar rupee cost averaging benefit of the SIP plan (Systematic Investment Plan) under the mutual fund scheme. Thus, consistent savings offer exceptional returns to meet the financial requirements of children in the future.
  • Policyholders must always select a maturity date which a few months earlier than the date before the insurance amount are required. For example, if the child requires financial help before he or she turns 21, then the maturity date should be chosen critically, which is 6 months before the child reaches the age of 21.
  • The best time to purchase a child insurance plan is as early a timeframe as possible, Purchasing a child insurance plan by the time of the first birthday can lay the impressive groundwork for the brilliant future of the child.

Types of Aditya Birla Sun Life Child Plans

Aditya Birla Sun Life Insurance offers different types of child plans. The various types of ABSLI child plans are as follows:

  • Aditya Birla Sun Life Insurance Vision Star Plan (ABSLI Vision Star Plan)

    Age of Entry

    18-55 years

    Age of Maximum Maturity

    75 years

    Minimum term of the policy

    Option A-16 years; Option B- 14 years

    Term of premium payment

    5 to 12 years

    Assured Minimum Sum

    Rs 1 Lakh

    Frequency of Premium

    Annual, Semi-annual, Monthly and Quarterly

    This is a unique insurance policy, which provides for money-back and offers periodic tenure payments. In this plan, the profits can be participated in by the insured. This plan provides dual options of garnering the period pay-out amounts as survival benefits. The initial pay-out begins in 5 years from the time of completion of the total premium amount. The pay-out rate is considered to be 20 per cent of the assured sum for the first two pay-outs. The last two pay-outs have a return rate of 30 per cent of the total sum assured.

    • All terminal bonuses and the accrued sum of bonuses are added to the maturity amount. The premium amounts of the future will get waived in the event of the death of the policyholder.
    • The pay-out amount is dependent on the chosen option and is completely paid when on due. Loans can be garnered under this plan with a minimum amount of Rs 50,000 and at the highest amount of 85 per cent of the total surrender value. The applicable rebates are passed to the clients through premium coupon rates.
    • These favourable rates are responsible for increased levels of sum assured options and also for deciding on the premium payment term frequency.
    • This insurance policy delivers its complete benefits when the term of premium payment is made for six-monthly or annual mode. The rate of rebate for annual and half-yearly premium payment stands at 3 per cent and 1.5 per cent.
  • Aditya Birla Sun Life Insurance Child's Future Assured Plan (ABSLI Child's Future Assured Plan)

    Age of Entry

    18-65 years

    Age of Maximum Maturity

    75 years

    Minimum term of the policy

    Minimum: Option A- For benefit of education and marriage- 5 years

    Maximum is 12 years

    Term of premium payment

    5 to 12 years

    Assured Minimum Sum

    Rs 4 Lakh

    Frequency of Premium

    Annual, Semi-annual, Monthly and Quarterly

    This plan guarantees assured benefit that makes sure that your child's educational career is on the right tracks. The assured sum benefit is completely paid when the child attains the age between 15 years to 21 years. This policy helps to make available the funds that are required to perform the marriage rites when the child's age is preferably between 24 and 32 years.

    Policyholders are provided with the choice to receive 100,150 or 200 per cent of the total sum assured amount as a guaranteed benefit under the Marriage Milestone under this specified option. In case of death of the Insured Life during the policy term, the nominee will stand to receive the death benefit as given below:

    • The assured benefit amounts are paid as per the option chosen by the policyholder on their respective due date.
    • Any additional amount of the total sum Assured in the event of death over the already discounted value of the Assured Benefit amounts that are payable in future will be immediately paid as a lump sum.
    • All future premium instalment amounts shall be waived off.
  • Aditya Birla Sun Life Insurance Classic Child Plan (ABSLI Classic Child Plan)

    Age of Entry

    18-65 years and the provided age on the date of savings should be 75 years or less

    Date of Savings

    The age of the child should be in the range of 18 to 27 years. This provision is subject to a minimum of 10 policy term years

    Term of Policy

    Date of Savings plus 20 years

    Amount of Basic Premium

    The minimum amount is Rs 25,000 per annum every year

    Minimum is Rs 30,000 if the premium is paid on a quarterly, monthly and semi-annually basis

    Term of payment

    Depends on Savings Date

    Top-up premium amount

    The minimum amount is Rs 5,000

    Increased Sum Assured

    Minimum us Rs 50,000; Not exceeding the Basic Sum Assured

    The basic assured sum is the minimum amount of death benefit that is payable on the primary life insured's death. The assured sum is determined as your basic premium amount multiplied by:

    • The higher if 10 times or the number of years to maturity amount divided into half, for ages less than 45; or
    • The maximum of 7 times or the number of total years remaining for maturity divided by 4, for the age of entry 45 and more.
  • Aditya Birla Sun Life Insurance Children's Dream Plan (ABSLI Children's Dream Plan)

    Age of Entry

    18-65 years and the provided age on the date of savings should be 75 years or less

    Term of 30 days- Term is 17 years

    Date of Savings

    The age of the child should be in the range of 18 to 27 years. This provision is subject to a minimum of 10 policy term years

    Term of Policy

    Date of Savings plus 20 years

    Amount of Basic Premium

    The minimum amount is Rs 25,000 per annum every year

    Minimum is Rs 30,000 if the premium is paid on a quarterly, monthly and semi-annually basis

    Term of payment

    Depends on guaranteed Savings Date

    Top-up premium amount

    The minimum amount is Rs 5,000

    Increased Sum Assured

    Minimum us Rs 50,000; Not exceeding the Basic Sum Assured

    The policy purchaser and the life insured should be between the ages of 18 to 60 at the time of entry into the insurance policy. The child is also known as the nominee should be at least 13 years or younger at the time of entry. The policy purchaser must be less than the age of 75 years to qualify when the plan achieve maturity state.

    The guaranteed maturity amount benefit can be selected by the policyholder as the least of the below amounts:

    • Rs 75,000 for the 100 per cent of guaranteed maturity amount option
    • Rs 37000 for the 200 per cent of the guaranteed amount option
    • Rs 25,000 for the 300 per cent of the total guaranteed maturity amount option

How to buy Aditya Birla Sun Life Child Plans?

Interested individuals can log onto the website of the company and browse through the available plans. Once the plan is selected, the coverage amount is decided upon and other personal details are provided. The premium amount is decided as per the choice of the sum assured.

The prospective client is required to pay the online premium amount using a debit card, credit card and other net banking facilities and the policy will be offered to the intermediaries. The customer service department of the insurance company can also be contacted and immediately a registered agent will contact the policyholder.

Documents required while Buying ABSLI Child Plans

 

Proof of Income

Address Proof

Proof of Age

Identification Proof

Self-employed Individuals

Self-Employed

Voter identification

PAN Card

Aadhar

Salaried Individuals

Form 26 AS

Aadhar Card

Aadhar

PAN Card

Salaried Individuals

Income tax returns for the latest 2 years will not be filed in the same year for purposes of income calculation

Passport

Passport

Voter Identification

Non-salaried individuals

In the event of income computations not being available: Last 3 year's ITR is not filed in the present year

Document of National Population Register showing details of stated address, name and Aadhaar number

A birth certificate as per municipal records

Passport

Self-employed Individuals

CA audited balance sheet and Profit-Loss account statement for the current year

Any listed document issued by the Central Government

Voter Identification

Passport

The Renewal Process of Aditya Birla Sun Life Insurance Child Plans

The renewal procedure of the child insurance policy is as follows:

Step 1: Visit the website and select the option of 'Renew' option.

Step 2: Enter the right policy number and include the personal details of the insured and then click the Proceed button.

Step 3: Fill in the applicable relevant information like the personal information of the policyholder and click on submit.

Step 4: The policyholder needs to make a financial transaction for the plan renewal.

Step 5: After the successful completion of the renewal process, an e-copy of the renewed insurance policy will be sent by e-mail to the individual and an SMS will be sent to the registered mobile number and a hard copy of the renewed traditional life insurance plan will be sent by post to the residential address.

Aditya Birla Sun Life Child Plans - FAQs