Exide Life Child Plans

Parents’ prime priority is the security of their child.  Every parent worries about the future of their children, especially after their death. You always want the best for your child and purchasing a life insurance policy will help secure their financial future even in your absence. The Exide Life Insurance Plan policies provide you with the benefit of fulfilling your child’s ambitions and future needs. Children Plans from Exide Life Insurance are for every parent who wants to save and secure their child’s future, either in their absence or after their death.

Life insurance plans are a policy bond that ensures a guaranteed sum assured against premiums paid duly on time, to the insured individual or the nominated loved ones (beneficiaries) in case of sudden death or demise of the individual before the end of the policy maturity term. Thus, providing a source of retirement income to the policyholder and financial assurance to their nominees. Similarly, a child plan is a guaranteed sum assured policy to provide for the ever-increasing future educational expenses, child care and upbringing needs, a monetary provision for a child’s future course or degree choices.

What is the Exide Life Child Insurance Policy?

A child plan is like any other insurance plan; here the insured parent pays a decided premium duly until the decided maturity term of the policy, against a sum assured. Like any other life insurance, it provides you with the death benefit or the maturity benefit as described under a policy bond. However, the child plan differs from other insurance plans as its main purpose is planning for a secure and stable future for the child.

The plan is available for all parents on the premises of covering the parent’s life, in turn, to cover the child’s life who must be minor, for whose benefit the plan is purchased. The Child plan can be purchased as a conventional insurance plan or a market-linked insurance plan. Traditional plans mainly do not earn bonuses depending on the plan’s design, unlike unit-linked plans as they participate in the markets and the fund grows accordingly.

Why choose Exide Life Child Insurance Plans?

Exide Life Insurance Company Limited began its operation from 2001-02 onwards and is headquartered in Bengaluru. It has a customer base of over 10 lakhs. It has multiple distribution 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 its presence 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.

Salient Features of Exide Life Child Insurance Plans

A child plan is like any other insurance plan and provides either death benefit or maturity benefit against which premiums are paid within a decided maturity term period. Parents can purchase these plans on behalf of their children, who must be a minor. However, a child plan differs from other insurance plans in various aspects, making them unique in comparison. Its features are as follows:

  • The main purpose of the plan is to provide a stable future for the welfare of the child
  • The plan is purchased either on the life of the parent who can either be the mother or father or on the life of the child who is a minor
  • Most plans are designed to cover the parent’s life. Some plans also cover the child’s life for whose benefit the plan is purchased
  • The plan is available either as a conventional insurance plan or a market-linked insurance plan
  • Additional bonuses on plans- Traditional plans may or may not earn bonuses depending on the plan’s design, unit-linked plans do not earn bonuses as they are market-linked, and the funds grow accordingly
  • The death benefit on the plan- If the insured parent dies during the period of the plan, the sum assured as the death benefit is immediately paid to the nominee and this benefit is pre-defined
  • However, after the parent’s death, the plan does not end. It continues and the insurance company becomes liable to pay the premium on each due date. This is the Waiver of Premium Rider benefit, which is provided under the plan, making the insurer liable to pay premiums after the insured’s death
  • The maturity benefit- When the plan matures, the maturity benefit will be paid by the insurer to the nominee

There are two different concepts of deferment and vesting under the Child plans-

  • Deferment is a postponement clause under which the child’s life is excluded from the scope of coverage in the first few years after the policy starts
  • In case of sudden death or demise of the parent, only the paid premiums are returned to the nominee or the child, and then the plan terminates
  • After the deferment period ends, 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 of the ownership. Since the child is a minor when the policy is bought, the child cannot be a legal owner of the policy. Thus, assigning the parent the ownership of the policy
  • Upon maturity, the child attains the age of 18 years; he or she is then capable of becoming the owner of this policy. As such, the policy vests in the name of the child and he or she 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

Before purchasing a policy plan, one must read about all the benefits, riders and features of the respective bonds to make maximum utilization of the insurance policy. You can always consult and discuss with the insurance agency’s representative or company appointed, certified agent, to make a more informed investment in any of the Exide Life Child Insurance Plans.

The Core Benefits of Exide Life Child Insurance Plans

A Child plan will secure the financial future of your child. In a child plan, the parent is the insured while the child is the beneficiary. An important benefit under some child plans is a waiver of the premium option. These are either in-built within the plan or available separately as a rider under a plan. By purchasing a Child Life plan, you are gaining the following benefits:

  • Waiver of Premium Option

    Certain child plans provide a waiver of premium option; it is either in-built in a policy or available separately as a rider. The insured can add this rider to his/ her policy at a minimal additional cost. This will ensure that in case of an eventuality, the insurer will waive off all the premiums completely. Thus, ensuring the child will continue to remain protected even if the parent is no longer around.

  • Securing your Child’s Financial Future

    The prime purpose of the child plan is to secure the financial future of your child, taking care of the future needs in case something happens to you. Under child plans, while the parent is the insured the child is the actual beneficiary. In case of any unfortunate event, the child will receive a lump sum amount that can be used to help address their needs.

  • Building a Financial Corpus for your Child’s Higher Education

    The constant rising of educational cost is one of the major concerns for parents. The cost of education is constantly on the rise and current expenses for pursuing a degree course will only increase ten times the amount now in the coming future. Therefore, a child plans that is a Unit Linked Child Insurance Plans will help provide the dual benefit of life insurance and investment. The premiums paid to the insurance company are further channelled towards market-linked investments that help build a sizeable corpus and also help generate returns in beating the effects of inflation. Such plans give the flexibility to customise the allocation of money towards various funds with varying degrees of risk.

  • There are More Benefits than just the Payment of the Sum Assured

    Under some child plans, the policy doesn’t stop with only the sum assured is paid in case of the demise of the parent, the policyholder. Even after the death benefit has been paid, the insurer will continue to invest on behalf of the deceased parent and at maturity, the child will get the fund value of the policy.

  • Periodic Payouts to Address the Needs of the Child

    While the child grows up or growing, financial help is needed at various stages of their career and life. This plan will provide periodic payouts at pre-defined intervals to help parents in taking care of their child’s various needs.

    All these features can be availed under a Child Life plan. It is one of the best gifts that a parent could gift their baby, safeguarding all his/ her present and future needs and goals. Thus, Exide Life Insurance offers several children plans to safeguard the future of your child.

Types of Exide Life Child Insurance Plans

Exide Life Insurance Company Limited offers different types of child insurance plans. They are as follows:

  • Exide Life Mera Aashirvad Plan

    It is a traditional insurance plan provided by Exide Life Insurance. The main purpose of this plan is to ensure a stable future for the child, especially after the death of the parent.

    Key Features of Exide Life Mera Aashirvad

    The following are the key features of the plan:

    • Under this plan, premiums are paid for a limited period only
    • The term for payment of premiums depends on the age of the child
    • The Maturity Benefit availed are of two types -
      • After the completion of the Premium Payment Tenure, the Sum Assured is paid as money back amounts. These are staggered Payouts as in 7.5% of the amount is paid in the first two years after the Premium Paying Term and 10% in the next two years, and on maturity, 65% of Sum Assured is paid
      • Another option is a Guaranteed Addition of 5%, added to the Sum Assured so that on maturity, 105% of the sum assured is paid to the policyholder
    • In case the insured parent dies within the tenure of the plan, all future premiums are waived off, but the plan continues. If the first option is chosen then the Staggered Payouts are paid as and when they fall due as stated above, while the remaining Sum Assured is paid on maturity or 105% of the Sum Assured is paid on maturity, depending on what option had been chosen
    • Under the death benefit, the amount payable is highest of either 10 times the annualized premium or 105% of premiums paid until the death of the policyholder
    • The insured can take a loan under the plan if three full years’ premiums have been paid
    • The plan also allows discounts on the premium payable if the Sum Assured chosen is Rs 6 Lakh and above.

    Eligibility Details of Exide Life Mera Aashirvad Plan

     

    Minimum

    Maximum

    Entry Age of the Parent

    21 years

    50 years

    Entry Age of the Child

    0 years

    15 years

    Maturity Age

    36 years

    65 years

    Policy Term

    Premium Paying Term + 5 years

    Policy Term

    Premium amount

    Depends on the coverage, tenure and age

    Premium amount

    Sum Assured

    Rs.3.5 Lakh

    No limit

    Premium Payment Term

    10 years

    20 years

    Premium Paying Frequency

    Yearly or monthly

  • Exide Life New Creating Life Plan

    Exide Life New Creating Life Plan is another traditional child insurance policy offered by Exide Life Insurance Company Limited. This plan is specially designed to cater to the needs of the buyer and offer financial security for his/her kids’ goals, even when the parents are not around.

    Key Features of Exide Life New Creating Life Plan

    The salient features offered under the plan are as follows:

    • Bonuses are declared under this plan as it participates in the company’s profits
    • Regular payment of premiums are made under this plan
    • On the death of the insured, the benefit payable is defined as higher by 10 times the annualized premium or the base Sum Assured with a minimum benefit of 105% of premiums paid until the death of the policyholder. However, there are two options to choose between –
      • Either the entire death benefit is paid in a lump sum amount to the nominee, or
      • 50% of the death benefit is paid in a lump sum and the remaining is paid in instalments under the Family Income Benefit. Under which 1% of the remaining benefit is paid, equal to the monthly instalments over a period of 5 years
    • Under both the death benefit options above, all future premiums are waived off on the death of the policyholder while the plan continues, and the maturity benefit is paid when the plan reaches maturity
    • Under the maturity benefit, the aggregate of Sum Assured, vested bonuses and any Terminal Bonus subject to a minimum of 101% of premiums paid
    • The plan provides a loan facility to the insured
    • Discounts in premiums are allowed on higher coverage amounts
    • There is a provision of adding two riders to the plan for more comprehensive coverage that is the Accidental Death Disability & Dismemberment Benefits Rider and ING Critical Illness Rider.

    Eligibility Details for Exide Life New Creating Life Insurance Plan

      Minimum Maximum
    Entry Age of the Parent 18 years 45 years
    Entry Age of the Child 0 years 17 years
    Maturity Age - 60 years
    Policy Term 15 years 25 years
    Premium amount Rs.12, 000 No limit
    Sum Assured Rs.113, 766 No limit
    Premium Payment Term Equal to plan term
    Premium Paying Frequency Yearly or monthly
  • Exide Life Wealth Maxima Plan

    This is a unit-linked insurance plan that is; it is an investment cum protection plan. The main feature of Maxima Child is to ensure the welfare of the child in the event of the insured parent’s death. The policyholder gets guaranteed money at the time of maturity and the beneficiary gets the sum assured, in case of death of the policyholder.

    Key Features of Exide Life Wealth Maxima Plan

    The following are the features offered under the plan:

    • The Fund Value is payable on maturity under the plan
    • In case the insured dies, higher of Sum Assured, including top-up Sum Assured or 105% of premiums paid, including top-up premiums paid, is paid immediately on the death of the insured. Furthermore, waiving all future premiums and are paid for by the insurer and on maturity, the Fund Value is paid.

    Eligibility Details for Exide Life New Creating Life Insurance Plan

     

    Minimum

    Maximum

    Entry Age of the Child

    0 years

    18 years

    Maturity Age

    -

    50 years

    Policy Term

    10 years

    20 years

    Premium amount

    Rs 4000 (monthly)

    Rs 36000 (annual)

    Sum Assured

    10 times the annual premium

    7 or 10 times of the annual premium

    Premium Payment Term

    Equal to plan term

    Premium Paying Frequency

    Yearly, half-yearly or monthly

How to buy Exide Life Child Plans?

One can buy Exide Life Child Plans in two different ways. They are:

  • Direct Purchase Online

    The company offers specific plans online only. You can visit the company’s website and thoroughly learn about the different policy plans, their features and benefits to choosing a plan that suits all your requirements. The customer needs to log into the company’s website, and choose the required plan, the coverage amount and provide the necessary details. The premium will be determined based on your requirement using the filled details online. The customer then needs to pay the premium online through credit card, debit card, or net banking facilities and the policy will be issued thereafter.

  • Or, Through an Intermediary

    There are agents, brokers, banks, etc., appointed by the company through which Plans that are not available online can be purchased. The intermediaries will help you with the application process and assist you in choosing a plan that is best suited to your needs. They can help and advice you to choose the best workable plan for you and your child’s secured future.

Things to Know Before Purchasing a Child Plan

Here is a rundown of the things to be considered before buying Exide Life Child Insurance Policies:

  • Choose a plan, which also acts as a saving’s plan
  • Learn of all the risks the plans may entail
  • Keeping inflation in mind and the purpose of purchasing a plan (education, gift for your child, etc.), choose a plan accordingly to cover future expenses on account of the same
  • Check for beneficial features like waiver of premium, life cover, etc. are available under each plan
  • Learn about the riders available with the plan to maximise benefits under the chosen plan’s coverage
  • Look for flexibility in the plan to be able to customize according to your changing needs

Documents required while Buying Exide Life Child Insurance Plans

These are the documents you will require to submit to purchase an Exide Life Child Plan in India:

  • Duly filled Application form/ Proposal Form
  • Applicant’s Address Proof
  • Applicant’s ID proof
  • Applicant’s Medical history documents
  • A medical examination is also performed on each potential policy buyer before issuing the child insurance policy

The Renewal Process for Exide Life Child Plans

One can pay and renew their plans, either online or offline:

Step 1: Visit the official website of the aggregator, broker or insurer.

Step 2: Enter the account number of the plan along with other necessary details.

Step 3: Make payment using your credit or debit card and your plan will be automatically renewed.

The Claim Process for Exide Life Child Insurance plans

Maturity claims or death claims under the Exide life insurance policies are made using the following steps:

  • Maturity claims

    In case of maturity claims:

    • The insurance company will send you a claim discharge voucher which you are to fill up and submit
    • Once the discharge voucher is submitted, the maturity claim is taken in the process
    • And finally, the claim is transferred to your bank account
  • Death claims

    In case of death claims:

    • The nominee should inform the insurance company of the death of the insured and a claim form should be filled and submitted, along with the relevant claim-related documents
    • The nominee’s identity proof will be required so that the insurance company can identify him/her and settle the claim

Exide Life Child Plans - FAQs

  • Q1. What are the main benefits of a child insurance plan?

    Ans. A child insurance plan is an investment plan that provides sufficient funds for the various academic milestones in your child’s life. The child can reap the benefits of the child insurance policy even in the absence of the policyholder, the insured, and the parent. The most important advantages of a comprehensive child insurance plan are:

    • First and foremost, it helps build a financial corpus for meeting a child’s all future expenses, which is not only limited to educational expenses.
    • Secondly, there is the option of partial withdrawals in case of any emergency. Thus, it enables us to help meet sudden and unforeseen expenses.
    • Thirdly, and not the final benefit only, they offer the premium waiver benefit. The insurance company, instead of the insured, pays off the remaining premiums due under the policy at a later stage but before completion of the maturity term of the policy.
  • Q2.  Is there any child plan with a one-time investment?

    Ans. Many child plans offer a one-time investment option in India, where you need to pay only once and reap the benefits for the rest of the policy period. A one-time investment plan for a child will ensure financial protection for your child with a single premium payment. You will not have to worry about premium due dates every year and the fear of policy lapse is completely eradicated.

  • Q3. What are the things to keep in Mind when Planning to Buy a Child Insurance Plan?

    Ans. The earlier you start; you stand to benefit from the power of compounding. It is essential to choose a cover keeping inflation in mind, as the market scenario is often unpredictable, and future expenses are forever on the rise. The right tenure ensures you receive the funds when your child needs them the most. Plan in time to purchase a plan that matures in time when your child needs most funds to shape his or her career, to choose and study to build on a life skill or career path. Hence, while buying a child life insurance plan, it is crucial to look at features like life cover and waiver of premium as this will enable you to reduce the financial burden at a later time in life and help you be prepared for the future.

  • Q4. When should I purchase a Child Life plan?

    Ans. As a parent, you want to give the best to your child. Meticulous financial planning ensures that your child has the best education, emotional independence, and a secure future. Child life insurance plans make sure that your child is not left helpless and left to fend for oneself alone, lest you succumb to the uncertainties of life. Therefore, it is important that you keep the following in mind before buying a child life insurance plan:

    An Early Start is A Key to Success - To provide a strong and secure financial future to your child. Ideally, you should purchase a child insurance plan when your child is born, as it helps you take advantage of compounding. The sooner you start; the lower will be the premium amount to be paid. Thus, buying a child life insurance plan earlier will reap rich dividends in the long run.

    While traditional investment avenues offer a pre-determined amount, they can’t combat the rising cost of education, healthcare, etc. Hence, it is important to choose a plan and sum assured amount by keeping inflation in mind. Choosing a market-linked child insurance plan will help you stay ahead of inflation in unpredictable times. You need to wisely choose the allocation of funds based on the amount of risk you are ready to take.

  • Q5. What essential features should I look for in a Child Life plan?

    Ans. While selecting a child insurance plan, look for essential features such as life cover and waiver of premium. In child insurance, the parent is the life insured and the child is the nominee or the beneficiary. A life insurance cover ensures that your child receives the lump sum which he or she can use for future expenses, in case of your sudden demise during the policy term. Waiver of premium ensures that in case of your death, your insurer waives off all the future premiums and keeping the policy intact. These features secure your child’s financial future against the odds.

  • Q6. Are Child plans flexible to Customisation with Changing Requirements?

    Ans. You may or may not need changes as the child grows. Hence, you need to find out a child insurance policy that gives you the flexibility to customise according to the changing requirements from time to time. For instance, there may be occasions when you need to make partial withdrawals for education. Know if there is a provision to increase the sum assured or the tenure depending on the needs of your child from time to time. Exide Life Insurance offers a host of child insurance plans that helps you plan and secure your child’s financial future according to your requirements and needs.

  • Q7. What should I do if I want to change my premium payment?

    Ans. All you need to do is to send in a written request to the customer service team, through post or email to the company and request to change the desired amount from the premium amount. If the chosen plan allows for any change, then the request will be taken forward. Thus, it is advisable to learn before buying a policy, if the same is open to premium payment amount revision later on.

  • Q8. How can I check the policy status for Exide Life Child Plans?

    Ans. Once you are registered with Exide Life online, you can check status updates of your plans and policies anytime. All you need to do is simply log-in to the company’s official website after you have had purchased a policy. By using your policy number and date of birth you can search for your respective policy. On the official website locate the MY LIFE tab and check the policy status of your bought plan.

  • Q9. What are the different modes of premium payment available? Can I pay online?

    Ans. There are several ways to make a premium payment. You can pay premiums both online and offline. You can make cash payment at any assigned branch by the insurance company. For instance at Axis Bank or ING bank nominated by Exide Insurance company. Otherwise, you can make online payment or choose internet banking, ECS, NEFT, auto-debit option on your credit card, debit card, through Demand Draft (DD) or cheque as per your choice and convenience.

  • Q10. How to surrender your plan?

    Ans. You will have to visit the closest Exide Life Insurance Company branch with your policy documents and fill the surrender form accurately. Once your surrender form and policy documents are verified, then the company transfers the fund to your bank account within 7 working days from the day of filing the claim.