The 14 Plans on 13 Points
Based on the offerings by various insurance companies and relevant information available in the public domain, we compared 14 child benefit insurance plans on 13 parameters. Points were assigned to each parameter considering their importance in the decision-making capabilities of users.
We have underlined some standalone features of each policy in an effort to help you know their unique selling proposition.
Reliance Child Plan
A guaranteed periodic benefit of 25 per cent of ‘basic sum assured’ plus ‘high sum assured’ additional benefit (if any) is paid on each of the last three policy anniversaries before maturity, irrespective of the survival of the life assured.
HDFC Young Star Super Premium
In case of diagnosis of any of the covered critical illnesses before the end of the policy term, the benefit payable will be determined based on the ‘benefit payment preference’ (save benefit or save-in-gain benefit) chosen by you.
LIC New Endowment Plan
This plan offers an accidental death and disability benefit rider (optional on payment of additional premium). The accident benefit sum assured is payable as a lump-sum along with the ‘death benefit’ under the basic plan. In case of ‘accidental permanent disability’ arising due to accident (within 180 days from the date of accident), an amount equal to the ‘accident benefit sum assured’ is paid in equal monthly installments (EMI) spread over 10 years. Also, future premiums payable for ‘accident benefit sum assured’ as well as ‘basic sum assured’ are waived off.
PNB Met Life Smart Child
Under the ‘tick and take’ plan, you can buy a policy without undergoing the hassles of any medicals and with minimum paperwork.
Star Union Dai-ichi Bright Child
The plan has two offerings: Career Endowment and Wedding Endowment. Under both, the policy provides graduation expenses, tuition-fee support (for graduation as well as post-graduation courses between the age of 18 and 21), and support to start own business or pursue higher studies or wedding at the age of 24.
Max Life Shiksha Plus Super
Under this plan, a family income benefit (FIB) following or coinciding with the death of the ‘life insured’ equalling to 10 per cent of the ‘sum assured’ is paid on each ‘policy anniversary’ till the end of the term, but not exceeding 10 such installments.
Aviva Life Young Scholar Advantage
The unique attraction of this policy is the specially designed death benefit that offers comprehensive protection to the child in the unfortunate event of the proposer’s death, by paying ‘sum assured’ after paying all future premiums (as a lump-sum) into the fund and continuing the policy with all the investment benefits intact till maturity of the policy.
Kotak Life Headstart Child Assure
This policy offers seven unique fund options to choose from, with varying degrees of equity exposure. These include funds combining equity, debt and money market instruments for getting a meaningful amount at maturity.
SBI Life Smart Scholar
The policy offers ‘accident benefit’ that includes ‘accidental death benefit’ and ‘accidental total and permanent disability (accident TPD) benefit’.
Aegon Religare Rising Star
This policy offers top-up premium that is to be paid over and above the contractual basic premium with a minimum of Rs 5,000. Such top-up can be opted for till the last five years before the policy term ends. The top-up also enhances the ‘sum assured’, thus enhancing the life cover.
Edelweiss Tokio Wealth Builder
This policy can give you medical-claim benefits under Section 80D if you opt for ‘rider benefit for critical illness’, in addition to the usual Section 80C (on premium paid) and Section 10-10D (policy repayment on maturity) of Income Tax Act. The policy further offers death benefit up to 115 per cent of the basic ‘sum assured’ in case of death of proposer.
Birla Sun Life Vision LifeIncome Plan
This policy provides income for life – five per cent of the ‘sum assured’ is guaranteed, plus bonus every year after the premium paying term (15 to 40 years). The policy also ensures safety for one’s family through comprehensive financial protection till 100 years of age of proposer.
IDBI Federal Childsurance
It offers an additional premium discount for women. The basic premium payable by a woman proposer will be equivalent to the premium for a man younger by three years (for example, a healthy woman of 30 years will pay the premium equivalent to that applicable to 27-year-old man).
Shriram Life New Shri Vidya
This policy offers a premium rebate of three per cent for a ‘sum assured’ of Rs 5 lakh and four per cent for ‘sum assured’ above Rs 10 lakh.