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IDBI Federal Child Plans

As a parent, it is imperative that you provide your child with the best of everything. Right from a morally sound upbringing to education and even marriage, you have to do everything you can to help your child in the best possible manner.

In this regard, investments in child insurance plans have come to gain some significance. These plans have been designed to ease on the financial burden on the parents and at the same time, ensure that you have enough money in order to support your child.

Investing in child plan ensures that you make disciplined savings to create a corpus that can be used later to cater to your child’s specific needs.

One of the most sought after insurance companies that offer child plans in India is IDBI Federal. Their child plans have been carefully conceived and designed keeping in mind the intent of ensuring a uniform saving regime for your child. In this article, we walk you through some of the best IDBI Federal Child Plans in addition to telling you what makes these child plans so attractive. Apart from that, we also help you figure out how you can go about applying to these plans and answer other common questions. Let us first discuss a little about what kind of child plans IDBI offers.

Types of Child Plans Offered by IDBI Federal Life Insurance

IDBI Federal Life Insurance is a joint venture of IDBI Bank, one of the fastest growing and premier commercial and development bank of India, as well as Federal Bank, one of the most sought after private banks in the country as well as Ageas, which is a multinational insurance company in Europe. Starting its operations way back in 2008, this company has come far by serving its customers with the best child insurance schemes.

Essentially, IDBI Federal Child Plans consist of two major plans, one that is a regular plan and the other is a market linked plan that ensures participation in the market thus increasing the chances of high returns. Here is a glimpse of these two plans.

IDBI Federal Childsurance Savings Protection Insurance Plan

It is a traditional child insurance plan in which a regular premium is paid for the policy period in order to reap returns after a certain point of time. The premiums are paid either for a limited time period as per the limited pay option or for the complete period of the plan according to the regular pay option.

Product Benefits

  • Apart from the conventional returns, reversionary bonuses are also paid, if any, in addition to the terminal as well as interim bonuses, if any.
  • In case of the death of the insured during the tenure of the plan, the sum assured is paid right away to the nominee. In such an event, the future premiums are waived off and all guaranteed annual payouts are paid to the nominee of the life insured.
  • The plan also offers tax deductions under Section 80C as well as Section 10(10D) of the Income Tax Act, 1961.

Eligibility

  • The minimum age of the parent is 18 years while the maximum is 40 years in case of Regular Pay and 50 years in case of Limited Pay.
  • The minimum age of the nominee child is 1 month while the maximum is 18 years.
  • The minimum maturity date is 28 years.
  • The policy term can be between 10 - 25 years and the minimum premium amount to be paid is Rs. 10,000 annually or Rs. 1,000 monthly.
  • The tenure of premium payment is equivalent to the tenure of the policy or for a term less than five years.
  • The premium has to be paid either yearly or monthly.

How Does the Plan Work?

The plan works like every regular child insurance plan. A premium is paid until the period of the policy is over after which the returns start accruing to the life assured or the nominee. Mr.Mishra is a 32-year old, healthy male. He has a 2-year old daughter. Mr. Mishra chooses to invest in Childsurance to secure the funds for his daughter’s future education needs. He buys a plan with a maturity sum assured of Rs. 5,00,000. He pays his premium of Rs. 32,405 annually. Mr. Mishra chooses a policy term of 20 years and a premium payment term of 15 years. On maturity he will receive Rs. 9,20,000

Wealthsurance Future Star Insurance Plan

Product Benefits

  • The premium is invested in the capital markets and the returns are directly affected by market factors.
  • The premium can be invested by the person who holds the policy in a range of funds or under the Systematic Allocator Option which the company provides. In the latter, the money is gradually shifted from high risk to low risk funds.
  • Loyalty additions are added at the end of the 10th year of the policy and after every 5 years from then.
  • In case of death of the insured, the sum assured is immediately paid as a lump sum to the nominee and all future premiums are waived off. An equivalent amount to the premium is invested by the company in the policy.
  • Partial withdrawals can also be made post the completion of the 5 year period. The amount cannot exceed 20 percent of the value of the fund.

Eligibility

  • The minimum age of the insured is 18 years while the maximum is 54 years.
  • The minimum age of maturity is 28 years and maximum is 64 years.
  • The minimum premium amount is Rs. 25,000 and maximum is Rs. 95,000
  • The mode of premium is annual.
  • The policy term extends from 10 years to 25 years.

How Does the Product Work?

The plan invests your corpus into equity markets so that your corpus increases over the policy period. Your return is subject to the market variations and is paid at the maturity of the policy. Wealthsurance Future Star being a combination of investment and protection gives you 2 accounts.

Investment Account: This account maintains the portion of your premium used to build wealth through the market linked investments. The premium amount (less applicable charge) is invested into the fund options selected and in the proportion specified by you. The Fund Value in this account reflects the wealth built over time on the basis of your premium contribution and the returns accrued from the investment options chosen.

Insurance Account: This account reflects the benefit amount under the life cover aspect of the Wealthsurance Future Star. This amount is a multiple of your annual premium. The charges for this benefit are deducted from your Investment Account.

How to Apply for IDBI Federal Child Plans?

  • Visit their website idbifederal.com or coverfox.com and enter your age as well as your child’s age, etc. to find the best child plan.
  • Choose the plan and select the mode of payment.
  • Upload the various documents as per the policy terms.
  • Once your plan has been initiated, print the transaction receipt for future reference.

FAQs on IDBI Federal Child Plans

Which is the best investment plan of IDBI Federal Child Plans 2018?

The choice of the plan depends on the parents. If you do not want to take any risk during the policy period, the traditional child insurance plan is the best. In case you have a risk appetite and want maximum returns from the sum invested, go for the child Plan that is equity linked and offers scope for maximisation of wealth.

Which is the best IDBI Federal Child Plan for long term?

Ideally, both the child insurance plans offered by IDBI Federal are for long term investments. The only difference that separates the two is the exposure to equity markets and as such, you can choose your desired plan depending on your desire to opt for such risk.

Why should I buy IDBI Federal Child Plans?

  • IDBI Federal Child Plans offer financial security to your child and ensure that your child is able to pursue his/her dreams without having to rely on anyone financially.
  • IDBI Federal Child Plans ensure disciplined savings over time that can be used in the interest of child in the future.
  • These plans offer an option of both, traditional as well as equity linked plans that a parent can choose from.
  • The child plans have a very good claim settlement ratio and come from a very trusted collaboration of IDBI as well as Federal Bank.

What should I do if I want to change my premium paying?

You can contact the customer helpdesk or contact your insurance plan manager and find out about the same. It may be relevant to enquire if such changes in the mode of premium paying is allowed in the middle of the policy period.

Why should you opt for IDBI Federal Child Plans?

  • IDBI Federal Child Plans waive off all future premiums in the event of death of the policy holder.
  • These plans have been carefully crafted to ensure that the child gets a considerable corpus in order to fulfil his/her dreams as he/she grows.
  • The IDBI Federal Child Plans offer a great choice for investment in equity funds if you choose for the equity linked child plans.
  • The claim settlement ratio is noteworthy and the customer satisfaction rate adds to the experience of the policy buyer.

How can I pay the premium and what are the different modes available?

  • Premium payment can be made through the following ways:
  • Physical payment at any IDBI Federal branch.
  • Online payment through card.
  • Payment via cheque.
  • Payment through the e-portal of the entity.

How can I check the policy status for IDBI Federal Child Plans?

Checking your policy status has never been simpler. Simply log on to their website and enter your user id and password to get access to all your policy details.

What is the policy renewal process for IDBI Federal Child Plans?

An e-policy can be renewed online quite easily through a few clicks. If you pay your premiums physically, you can renew your policy by contacting the customer helpdesk or talking to your policy manager.

What is the company’s process to settle claim for IDBI Federal Child Plans?

IDBI Federal offers a quick claim settlement process. Your claims are processed within 8 working days, provided all conditions with respect to your documents are met. In case of delay, the company pays a penalty of 8 percent to the beneficiary.

What is the policy cancellation process for IDBI Federal Child Plans?

The cancellation process takes a maximum of 30 days. The policyholder must attach all relevant documents post which the refund is credited to the bank account directly.

How do IDBI Federal Child Plans work?

The working process of IDBI Federal Child Plans is quite simple. Money invested over the years accrues to the policyholder after the termination of the policy period either as per the traditional payback method or as per the equity linked returns, depending on the type of plan chosen.