Tag Archive | "Child Insurance"

smart stage money back plan: ideal Plan for your child’s education

  • Easypolicy
  • 04 Mar 2014

If you intend to save money for your child’s education, then you should certainly consider Smart Stage Money Back Plan. This plan has recently been launched by Canara HSBC Oriental Bank of Commerce Life Insurance to suit the needs of various customers with regard to insurance, investment, liquidity and guaranteed returns.

The Policy Term of Smart Stage Money Back Plan is 15 years, while the Premium payment term is only 11 years. The minimum sum Assured that one can opt for under the plan is INR 1,00,00. The plan grants rebates if you choose a Sum Assured amount higher than 1,50,000. The minimum and maximum eligible entry age for those looking to buy this plan is 8 years and 55 years, respectively.

Regular pay-outs provides liquidity and reinforces customer trust and confidence

It offers customers liquidity benefit by providing multiple payouts during the policy tenure. The plan provides for four payouts at different points in time. The first payout which is 15% of the sum assured is scheduled in the fourth year of policy term. The second and third payouts which are also 15% of the sum assured are given out in the 8th and 12th year of the policy term. The Maturity benefit which is 55% of the sum assured is given out at the completion of the policy term.

Apart from the minimum sum assured the Insured will also be entitled to receive bonuses at maturity that would have accumulated during the policy term. All benefits received under the plan are tax free as per existing income tax provisions.

The plan is being hailed as a good child plan as the regular payouts offered by the plan can be utilized by the customers to meet the various expenses related to child’s education. The regular money back clause ensures that you have enough money with you so that you can conveniently meet the various life stage needs of a child like hobby courses, graduation, marriage etc.

Death Benefit

Apart from guaranteed survival benefits payable at various junctures, the plan also ensures life cover to the family during the entire tenure of the policy. The Death Benefit which is higher of the sum assured or 10 times the annualized premium is payable irrespective of any guaranteed money back benefit that would have been paid before the demise of the insured. Apart from the death benefit, family will also be entitled to any bonuses that would have accumulated during the course of the policy before the death.

dual denefits of child plan - investment and protection

  • Easypolicy
  • 14 Mar 2013

An important aspect in the proper upbringing of a child is to plan for his/her future well in advance. While fulfilling the daily chores involved in the process of parenting, it is quite normal to see parents forgetting the long Term needs of a child upbringing. As a result, we often see parents in a fix when they are not able to provide the needed financial support to their child so that they can pursue the best education that would enhance their career prospects.

If as a parent, you do not want to see yourself in such a situation, it is advised that you should start saving and invest these savings so that the money can grow over the time and could be fruitfully used when it is most required. One of the widely used investment option is a child plan offered by the insurance companies. The best time to save and invest is now, as the golden rule of financial planning is to invest as early as possible. 

The key advantage of investing in a child insurance plan is that it offers the dual benefit of investment and protection.

Investment Benefit - Generally investments are made in a child plan in the form of annual or quarterly premiums. There is a host of online child plan available on the market and you may choose the one that best fits your needs. The best child plan is one that helps you grow your money so that you are able to meet the future requirements to fund various milestones in your child's career and life to your own satisfaction. Child plans provide you milestone payments when you most need them. The timing of these payments can be pre-defined and usually coincides with the timing when your child would be planning to pursue college or higher education and also at the time of his or her marriage. Besides these milestone payments, a child plan also entitles to a terminal payment when the Policy expires. Several plans offer the option to the investor to decide on the quantum of payment they would expect at different points in time.

Protection Benefit - The protection benefit is the one that any parent will find to be the most crucial one. A child insurance plan secures the future of your child even in the case of unfortunate demise of the parent. If such an unfortunate event happens, the insurance company would provide to the child a death benefit, which is a fixed percentage of the Maturity benefit. Besides, most child plans also come with a Premium Waiver benefit. In order to ensure that the child plan does not get lapsed because of non-payment of premium in case of death of the parent, the insurance company waives off the premium liability, while at the same time the rest of the benefits which include the education and marriage payouts are paid out to the child as planned.

In order to ensure added protection you may further customize your policy by adding Accidental Death Benefit (ADB) or, Disability and Dismemberment Benefit (ADDD Benefit) Riders. The Riders can be attached only on the parent’s life till the end of the premium paying term.

Several child insurance plans are available today. It is advised that you always compare child plan online on the basis of benefits, premium, riders and policy exclusions. Before you buy online child insurance, always remember that the best child plan is one that fits your pocket as well as goals.