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