Birla Sun Life Child Plans

Most of us would unanimously agree that children are the next generation of the society, and few things are as important as securing the life and happiness of our young ones. While everyone looks forward to saving for our future, quite often our plans on this front do not materialise. So, it is a good idea to decide upon a plan and initiate savings. The child plan can be registered in the name of the child or even in the parent’s name. The policy should be flexible and functional whenever you need money for your child’s needs.

Aditya Birla Sun Life Insurance stands as joint venture between the Aditya Birla Group and Sun Life Financial Inc. The latter is a big international financial company based out of Canada. Whereas Aditya Birla Sun Life Insurance has made relevant contributions towards the growth and evolution of the insurance industry in India.

• A unique money-back policy that delivers periodic payments over and above plan’s tenure.

• The plan is eligible for share in profits of the company by way of gathering bonus.

• The plan has two heads to avail the periodic pay-outs known as survival benefits. Under the first option A, pay-outs start 5 years after the completion of the premium paying term and are thereafter paid every two years. Under the second option, pay-outs start 5 years after the completion of the premium paying term and thereafter, are paid every year.

• The rate of pay-out in option A is 20% of the Sum Assured in the first two pay-outs and 30% of the Sum Assured in the last two pay-outs.

• The rate of pay-out in the other option B is 15% of the Sum Assured for the first two pay-outs, 20% of the Sum Assured for the next two pay-outs and 30% of the Sum Assured in the last pay-out.

• Upon maturity, the accrued simple bonus and various terminal bonuses are paid to the policyholder. If the policy holder dies during the tenure of the plan future premiums are waived off after the death of the insured while the plan continues.

• The pay-outs depending on the option chosen will be paid as and when they fall due.
• Upon maturity, the gathered simple bonuses and any terminal bonus is paid.
• The pay-outs can also be deferred by the policyholder if required in which case a higher amount of pay-out can be availed.
• Loans can be availed under the plan with a minimum INR 5000 as value and a max 85% as the applicable Surrender Value Rebates are allowed in the premium rates for higher levels of Sum Assured options.
• The annual rebate rate and semi-annual premium mode payment stands at 3% and 1.5% each.

This is a unique money-back policy that provides periodic payments over the tenure of the plan. Features and pros of the plan are as follows:

The plan is eligible to participate in the profits of the enterprise by the method of gathering bonus and premium along the plan that require payments only along limited tenures. The plan has 2 options of gathering the periodic pay-outs popular as survival benefits. Along the first option A, the pay outs begin in 5 years post completion of the premium payment and after that they are paid at two-year intervals. The pay-out rate is 20% @ assured sum for the first couple of pay-outs and 30% of the assured sum in the last couple of pay-outs. Under the second option B, pay-outs start 5 years after the completion of the premium paying term and are thereafter, paid every year. The rate of pay out is 15% of the Sum Assured for the first two pay-outs, 20% of the Sum Assured for the next two pay-outs and 30% of the Sum Assured in the last pay out. Upon reaching maturity or death of the policyholder, the gathered bonuses and all terminal bonuses accumulated amount is given to the nominee child.

Also, premiums for the future get waived post death of the person insured. Yet, the plan continues to function. The pay-outs that depend upon the selected option is paid when they become due. Upon maturity, the gathered reversionary bonus and all of terminal bonus gets paid. The pay-outs can also be delayed by the policyholder when required, in which case, a higher amount of pay out can be availed. Loans can be gathered under the plan with the smallest value at INR 5000 and at a maximum of 85% of the surrender value. Rebates applicable are passed in the premium rates for higher levels of assured sum options and for deciding upon annual and six-monthly payment mode. The rebate rate for annual and six-monthly premium payment mode stands at 3% and 1.5%.

You can log into the company’s website, select the plan required, and decide upon the coverage and provide the other required details. The premium is decided as per the sum assured chosen. Then, the client is required to pay premium online using credit card, debit card or net banking facilities and the policy will be issued Intermediaries. In case you require further assistance, you can even contact the registered agents and intermediaries and buy the plan offline.