SBI Life Child Plans

SBI Life Child Plans

SBI Life Insurance Corporation has all types of life insurance solutions for its customers. The company is a joint venture between BNP Paribas Cardiff and one of the largest banks of India, SBI. The company, therefore, has a strong backing and offers attractive life insurance products which promise some unique benefits to customers. From pure term plans to savings plans, traditional plans to market-linked plans and plans designed to cater to specific financial requirements, SBI Life has all in its kitty. Child plans are also offered by the company which are designed for individuals looking to create a secured financial future for their child. Let’s understand the concept of child plans in details and have a look at the child plans offered by the company –

What is a child plan?

A child plan is an insurance plan which is meant to create a corpus for the secured future of the policyholder’s child. This corpus is created independently of whether the parent is alive or dead. In fact, the highlight of child plans is the fact that even after the death of the parent, the plan continues and creates the promised corpus which the child can use later on.

Salient features of SBI child plans

Child plans have some salient features which include the following –

• Child plans are available to individuals who have a child, either biological or adopted
• Coverage is usually given on the life of the parent though in some plans even the child can be covered
• Child plans have an inbuilt premium waiver benefit which waives the premiums payable if the parent dies during the policy tenure. The insurance company pays the premium on behalf of the parent and the policy continues
• A death benefit is paid on the death of the parent during the policy tenure. The policy, however, continues and then, on maturity, a maturity benefit is also paid
• Child plans can be traditional plans or unit linked plans

Child plans offered by SBI Life

SBI Life Insurance offers two types of child plans. One is a traditional endowment plan while the other is a unit linked plan. Let’s understand the plans in brief –

• SBI Life – Smart Champ Insurance
  This is a traditional endowment child plan which also participates in bonus declarations helping policyholders to enhance their corpus. The features of the plan are as follows –
  • The plan comes inbuilt with Life and Accidental Total Permanent Disability rider. This means that if the insured dies or becomes permanently disabled due to an accident during the policy tenure, the plan benefits would be paid
  • The maturity benefit is paid in four equal instalments after the child attains 18 years of age
  • Premiums can be paid in one lump sum or for a limited tenure as suitable to the policyholder
• SBI Life – Smart Scholar
  Smart Scholar is a unit linked plan which helps parents create an inflation-proof corpus for their child’s future which would give attractive returns along with insurance coverage. The features of the plan are as follows –
  • Loyalty additions are allowed at regular intervals to boost the fund value
  • There are seven funds to choose to invest the premium
  • There is an inbuilt rider which covers accidental deaths and permanent disablements.

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