Child Insurance Plan by ABSLI

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Give ₹ 1 lakh/ year for 10 years Get₹ 21.58 lakhs guaranteed benefits1

Flexibility to save for child’s life goals.
Guaranteed# Benefits
Tax benefits*
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Child Plans

What is a Child Plan?

A Child Plan is a financial product designed to provide savings and insurance benefits for your child's future needs. These plans are typically a mix of investment and insurance, ensuring that your child has financial security, especially for significant future expenses such as education, marriage, or starting a business. Child Plans not only offer financial support in the case of the unfortunate event of a parent’s premature death but also build a corpus over time to meet various milestones in a child's life.

Why Should You Buy a Child Insurance Plan?

Investing in a child insurance plan is crucial for several reasons:

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Financial Security for Child’s Future:
A child plan ensures that major life expenses like higher education or marriage are financially covered, regardless of life’s uncertainties.
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Protection Against Unforeseen Circumstances:
In the event of a parent's untimely demise, a child plan includes a life cover component that offers a lump sum amount to the family, ensuring the child’s future needs are not compromised.
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Building a Savings Habit:
Regular contributions to a child plan encourage disciplined savings, helping accumulate a substantial fund over time through the power of compounding.
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Tax Benefits*:
Contributions towards child plans are often eligible for tax deductions under Section 80C of the Income Tax Act, providing additional financial relief.
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Flexibility in Payments:
Many child plans offer flexible payment options, allowing parents to choose the frequency and amount of premium payments according to their financial convenience.
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Educational Support:
Child plans often come with features like partial withdrawals that allow parents to meet the expenses of higher education without any financial strain.

Investing in a child plan is a prudent decision to ensure your child’s future is secure, both educationally and financially, allowing them to achieve their dreams without monetary constraints.

Types of Child Insurance Plans

Child insurance plans can be broadly categorized into two types, each serving different financial needs and goals:

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Traditional Child Insurance Plans:
These plans offer a mix of investment and insurance with a focus on safety and guaranteed# returns. They typically invest in debt instruments and provide a lump sum amount on maturity or on the untimely death of the parent.
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Unit Linked Insurance Plans (ULIPs) for Children:
ULIPs offer both life insurance and investment in market-linked instruments. These plans provide the potential for higher returns by investing in a combination of equity and debt funds, based on the risk appetite of the policyholder. They also offer flexibility to switch between funds to maximize returns.

Features of Child Insurance Plans

Child insurance plans come with several key features designed to meet the specific needs of saving for a child's future:

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Waiver of Premium:
In case of the untimely death of the parent, the future premiums are waived off, but the policy continues and the child receives the intended benefits.
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Maturity Benefits:
These plans usually offer a lump sum amount on maturity, which can be aligned with significant milestones in a child’s life, such as college admission.
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Partial Withdrawals:
Many plans allow for partial withdrawals to meet financial needs at critical stages of the child’s education or other developmental milestones.
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Death Benefits:
Provides a lump sum amount immediately on the death of the insured parent, ensuring that the child’s future financial needs are not hindered.
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Riders:
Additional riders such as critical illness or accidental death can be added to enhance the cover, providing broader financial protection.
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Tax Benefits*:
Premiums paid towards child plans are eligible for tax deductions under Section 80C, and the maturity benefits are tax-free under Section 10(10D)** of the Income Tax Act, subject to certain conditions.

These features make child insurance plans a comprehensive financial tool for securing your child’s future, providing both insurance coverage and investment growth opportunities.

Benefits of child protection plan insurance

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Ensured Educational Opportunities:
Guarantees funds for higher education, which can be crucial for your child's career and personal development, regardless of the economic or personal changes that may occur over the years.
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Comprehensive Financial Security:
Offers a combination of death benefits and maturity benefits, ensuring that your child will have financial support through their formative years and beyond, even in your absence.
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Adaptability to Changing Needs:
Many child plans offer flexible features such as partial withdrawals or the option to add riders, adapting to your child's evolving needs as they grow.
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Peace of Mind:
Knowing that you have a plan in place to support your child’s major life events, such as education and marriage, can provide immense peace of mind.
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Long-Term Wealth Creation:
Investing in a child plan contributes to building a significant corpus over the long term due to the power of compounding, especially if started early in the child’s life.
Our Child Plans
ABSLI Child’s Future Assured Plan
UIN: 109N124V01
Protect the important milestones in your child’s life
Guaranteed# returns
Flexibility to save for education or marriage
Tax benefits*
Life Cover
Guaranteed benefits
₹21.58 lakhs
Annualized premium for 10 years
₹1 lakh¹
ABSLI Vision Star Plan
UIN: 109N096V03
Money Back Plan to nurture your child’s passion.
Future Premium Waiver
Regular assured payouts
Comprehensive financial protection
Flexible premium payment
Annualized premium for 5 years
Rs.9.36lakhs
Total Return
Rs.92.39 lakhs

How Does a Child Insurance Plan Work?

Child insurance plans function as both an investment and an insurance policy, designed to provide financial support for your child’s future needs:

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Premium Payments:
You pay premiums regularly over a specified term, which may vary depending on the policy. Some plans allow for a lump sum payment option.
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Investment Growth:
The premiums are partly used to provide life cover, while the remainder is invested in funds or instruments chosen based on the plan’s nature (traditional or ULIP). The returns on these investments accumulate over time, contributing to the corpus.
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Payouts:
On maturity, the child insurance plan pays out a lump sum amount. In ULIPs, the payout depends on market conditions and the fund’s performance.
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Death Benefit:
In case of the parent’s demise during the policy term, an immediate sum assured is typically paid to the family, ensuring financial support for the child’s needs without interruption. Further premiums may be waived while the policy continues to invest towards the maturity benefit.
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Partial Withdrawals:
Some plans allow withdrawals during the policy term to cater to immediate financial needs related to the child's education or other expenses.

Understanding these mechanisms helps you effectively plan and utilize a child insurance plan, ensuring it aligns with your financial goals for your child’s future.

What are the Child Insurance Riders?

Riders are additional benefits that can be attached to a primary child insurance policy to enhance the coverage and provide extra protection or savings opportunities. Here are some common child insurance riders:

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Waiver of Premium Rider:
Ensures that all future premiums are waived off while keeping the policy benefits intact if the parent (policyholder) passes away or becomes disabled. This ensures that the policy continues to accumulate funds without further financial burden on the family.
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Critical Illness Rider:
Provides a lump sum payment if the parent is diagnosed with a specified critical illness during the policy term. This helps cover medical expenses and other financial needs during a critical time without impacting the funds set aside for the child’s future.
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Accidental Death and Disability Rider:
Offers an additional sum assured in case of accidental death or disability, providing extra financial support to the family in such unforeseen circumstances.
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Term Rider:
Adds a specific term insurance cover to the primary policy, increasing the death benefit over and above the main policy cover, which can be crucial for covering immediate financial needs in case of the parent's demise.
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Income Benefit Rider:
Provides a regular income to the family for a specified period following the death or disability of the policyholder, helping to manage day-to-day expenses and maintain financial stability.

Why Should You Get Child Insurance Riders?

Adding riders to a child insurance plan enhances the security and benefits offered by the policy:

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Enhanced Financial Protection:
Riders like accidental death, critical illness, and waiver of premium provide additional layers of financial security, ensuring that the child’s future is protected against multiple risks.
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Cost-Effective Coverage:
Getting riders along with the main policy is usually more cost-effective than purchasing separate insurance policies for each type of cover.
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Customizable to Needs:
Riders allow you to customize the insurance plan based on your specific needs and concerns, making the policy more flexible and tailored to your family’s circumstances.
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Peace of Mind:
Knowing that you have comprehensive coverage that accounts for various possibilities gives you peace of mind, allowing you to focus on raising and planning for your child without undue stress about their financial future.

Incorporating riders into a child plan is a strategic way to ensure that your child’s needs are comprehensively covered, making it a robust financial tool for securing your child's future.

Are Child Plans Tax-Free?

Child plans offer several tax benefits* that make them an attractive investment option for parents. Here are the key points regarding the tax treatment of child plans:

  • Premiums Paid:
    The premiums paid towards child insurance plans are generally eligible for tax deductions under Section 80C of the Income Tax Act. This allows for a deduction of up to ₹1,50,000 annually, which includes other eligible investments and expenses under the same section.
  • Maturity Benefits:
    The amount received on the maturity of a child plan is tax-free under Section 10(10D)**, provided the premium does not exceed 10% of the sum assured for policies issued after April 1, 2012. For policies issued before this date, the premium must not exceed 20% of the sum assured.
  • Death Benefits:
    Any death benefit received from a child insurance plan is completely tax-free under Section 10(10D)** without any upper limit.

    These tax benefits* enhance the overall value of investing in child plans by reducing the taxable income of the parent and ensuring that the benefits received (whether maturity or death benefits) do not attract tax, thus securing the financial future of the child without tax implications.

Tips to Consider While Buying a Child Plan:

When choosing a child plan, consider the following tips to ensure that you select the best option tailored to your financial goals and your child's future needs:

  • Assess the Coverage Amount:
    Determine the amount of coverage you need based on future educational costs, inflation rates, and other financial goals for your child. Ensure that the plan covers significant future expenses such as higher education or marriage.
  • Review the Investment Component:
    For Unit Linked Insurance Plans (ULIPs), review the types of fund options available and their historical performance. Choose a plan that aligns with your risk tolerance and investment goals. Traditional plans will offer more conservative returns but with lower risk.
  • Check the Flexibility of the Plan:
    Opt for plans that offer flexibility in terms of premium payment terms, investment options, and partial withdrawals. This will allow you to adapt the plan as per changing financial situations and educational needs of your child.
  • Understand the Terms for Partial Withdrawals:
    Check the conditions under which partial withdrawals are allowed, as these features can be crucial for meeting financial requirements during educational milestones.
  • Consider Additional Riders:
    Evaluate additional riders such as waiver of premium, critical illness, or accidental death. These riders enhance the policy by providing extra security in case of unforeseen events.
  • Compare Various Plans:
    Don't settle for the first plan you come across. Compare various child plans offered by different insurers to find the best rates, benefits, and features that suit your financial planning needs.
  • Read the Fine Print:
    Carefully read the policy terms and conditions to understand the inclusions, exclusions, and other terms of the policy. Pay special attention to clauses related to policy surrender, loan against policy, and terms of renewal.
  • Plan Early:
    Start planning when your child is still young. The earlier you start, the smaller the premiums and the larger the eventual corpus due to the longer accumulation period.

    By following these tips, you can choose a child plan that not only offers financial security for your child's future but also aligns perfectly with your long-term financial goals, ensuring a stable and secure financial foundation for your child.

What is the Claim Process for Children Insurance Plans?

Understanding the claim process for children insurance plans is crucial to ensure that you can efficiently access the plan's benefits when needed. Here’s a general overview of the steps involved in the claim process:

Notification of Claim:
The first step in the claim process is to notify the insurance company as soon as the claim event occurs. This could be the death of the policyholder or the maturity of the policy.

Submission of Required Documents:
The insurance company will require several documents to process the claim. For a death claim, these might include the death certificate of the policyholder, the original policy document, claim forms, and any other relevant documents like a medical report if required. For maturity claims, the required documents might include the original policy document, identity proof of the beneficiary, and a duly filled maturity claim form.

Review of the Claim:
Once the insurance company receives all necessary documents, they will review the claim to verify the details and ensure all conditions are met. This may involve an assessment of the cause of death in case of a death claim.

Claim Settlement:
After verifying the documents and claim details, the insurance company will process the claim. If the claim is approved, the payment will be made to the nominee or beneficiary. Most insurance companies aim to settle claims promptly, adhering to the regulatory guidelines on claim settlement timelines.

Dispute Resolution:
In case of any disputes or if the claim is rejected, the beneficiary can approach the grievance redressal cell of the insurance company. If the issue remains unresolved, it can be escalated to the insurance ombudsman.

Ensuring that all premiums are paid up to date and keeping all policy documents secure and accessible can facilitate a smoother claim process.

Eligibility Criteria for Child Insurance Plans

The eligibility criteria for purchasing a child insurance plan vary between different insurers and plans, but generally include the following key aspects:

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Age of the Child:
Most child plans can be availed from the birth of the child, with some plans setting a minimum entry age of 90 days. The maximum entry age can vary, typically around 10 to 12 years.
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Age of the Parent:
Parents can usually purchase child plans from ages 18 to around 50 or 55 years. This age range allows parents to cover the significant educational and developmental milestones of their child.
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Policy Term:
The policy term is often flexible but should typically extend until the child reaches adulthood—usually considered to be 18 or 21 years old. Some plans may extend the coverage further to cover educational expenses like college or postgraduate studies.
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Premium Payment Terms:
These are often flexible, with options for regular pay (throughout the policy term), limited pay (pay for a limited time but stay covered longer), or single pay (one-time lump sum payment).
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Financial Status and Health of the Policyholder:
The parent or legal guardian must be able to pay the premiums consistently throughout the term. Health declarations or medical examinations may be required, depending on the policy specifics and the sum assured.

It's important for parents to review the eligibility criteria carefully to ensure they meet the requirements and that the policy meets their financial planning goals for their child’s future. Selecting the right plan early can maximize the benefits received and ensure the child is well-protected and supported as they grow.

List of Documents Required for Buying Children's Insurance Plans

When purchasing a child insurance plan, you will need to provide certain documents to the insurance company to complete the application process. Here is a typical list of documents required:

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Application Form:
A completed and signed application form that provides all the necessary details about the policyholder and the child.
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Proof of Identity:
Valid government-issued ID documents such as a PAN card, Aadhaar card, Passport, or Driving License of the parent or legal guardian.
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Proof of Address:
Recent utility bills, bank statements, Aadhaar card, or Passport that shows the current residential address of the policyholder.
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Proof of Age:
Birth certificate, Passport, or school certificate of the child to verify their age.
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Income Proof:
Recent salary slips, income tax returns, or Form 16 to demonstrate the financial capability of the policyholder to pay the premiums.
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Photographs:
Recent passport-size photographs of the policyholder.
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Medical Reports:
If required by the policy, medical examination reports to assess the health status of the policyholder.
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Bank Account Details:
To facilitate premium payments and to receive any payouts, bank account details such as cancelled cheque or bank passbook might be needed.

These documents help the insurance company assess the risk and eligibility of the applicants, ensuring the policy terms are suitable for both the insurer and the insured.

Steps to Buy Child Insurance Online at ABSLI

Purchasing a child insurance plan online from Aditya Birla Sun Life Insurance (ABSLI) is convenient and straightforward. Here’s how you can do it:

  • Visit the Official ABSLI Website:
    Start by navigating to the ABSLI website. Look for the ‘Life Insurance Plans’ section and select ‘Child Plans’ from the dropdown menu.
  • Choose the Suitable Child Plan:
    Review the available child plans to find the one that best meets your needs. Each plan’s page provides detailed information about the benefits, premiums, terms, and more.
  • Calculate the Premium:
    Use the online premium calculators available on the plan page to estimate the premium amount based on the sum assured, term of the plan, age of the child, and other relevant factors.
  • Fill Out the Application Form:
    Complete the online application form by providing all required details such as the child’s information, your information (as the policyholder), and any other additional information requested.
  • Upload Documents:
    Upload the necessary documents such as proof of identity, proof of address, proof of age, and any other documents as specified in the application process.
  • Make the Payment:
    Pay the initial premium online through secure payment options available on the ABSLI website, including net banking, credit/debit cards, or other digital payment methods.
  • Await Policy Confirmation:
    Once the payment is made and the application is submitted, ABSLI will process your application. They may contact you for any further information or clarification. Upon approval, you will receive your policy document via email and a hard copy will be sent to your registered address.
  • Review the Policy Document:
    Once you receive the policy document, review it thoroughly to ensure all details are correct and understand the terms and conditions.

    By following these steps, you can easily purchase a child insurance plan from ABSLI online, providing financial security and peace of mind for your child’s future.

Assistance to buy a child insurance policy

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FAQs

Who is eligible to buy a child insurance plan?
Anyone who is a legal guardian or parent of a child typically qualifies to purchase a child insurance plan. The age range for children usually starts from 90 days up to 17 years. Parents or guardians can be anywhere from 18 to about 60 years old, depending on the specific rules of the insurance provider.
What are the government plans for child education in India?
The Government of India offers various schemes to support child education:
  • Sukanya Samriddhi Yojana (SSY): Specifically designed for the girl child, this scheme allows parents to open a savings account for their daughter(s) with a high-interest rate and tax benefits*.
  • Mid-Day Meal Scheme: Provides free lunches within schools to improve enrollment, retention, and attendance rates while improving nutritional levels among children.
  • Sarva Shiksha Abhiyan (SSA): Aims to universalize elementary education by community-ownership of school-based interventions.
  • Rashtriya Madhyamik Shiksha Abhiyan (RMSA): Focuses on enhancing the quality of education at the secondary level through various initiatives and provisions.
Can I customize a Child Plan as per my specific requirements?
Yes, most child plans are flexible and can be customized to meet specific needs and goals. You can choose the sum assured, premium payment term, and decide on adding various riders such as waiver of premium or critical illness riders. You can also choose between different investment options in ULIPs or opt for more traditional savings methods.
What is not covered in a Child Education Plan?
Child education plans typically do not cover expenses related to:

  • Pre-existing conditions of the child or parent that were not disclosed at the time of purchasing the plan.
  • Injuries or illnesses caused by participation in hazardous activities, unless specifically covered.
  • Events occurring during waiting periods specified in the policy terms.
  • Other specific exclusions that vary from one policy to another, such as self-inflicted injuries or abuse of substances.
Can I prematurely close the child education plan deposit?
Premature closure of a child education plan is generally allowed but can come with penalties or surrender charges, depending on the terms of the policy. The exact terms for premature withdrawal or closure will be specified in your policy document, and it's advisable to read these terms carefully before deciding to close the plan early.
What happens to the future premiums of the child education plan if the policyholder dies?
In most child education plans, if the policyholder dies during the term of the plan, the future premiums are waived off under a standard feature known as the "waiver of premium." Despite the waiver, the policy continues as planned, ensuring that the child still receives the financial benefits at maturity or as specified under the plan’s terms. This feature helps to safeguard the child’s future educational needs even in the absence of the policyholder.
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  • Disclaimer

    * Tax benefits are subject to changes in tax laws. You are advised to consult your tax advisor for the same.
    **Sec 10(10D) benefit is available subject to fulfilment of conditions specified therein
    # Provided all due premiums are paid.
    1 ABSLI Child’s Future Assured Plan. Plan option: Education & Marriage Milestone. Male | Age: 35 years | Policy term: 25 years | Premium paying term: 10 years | Education milestone benefit period: 3 yrs & Education assured benefit start term: 15 yrs | Marriage assured benefit start term: 25 years | Annualized premium: ₹1,00,000 (excluding tax) | Total Benefits Payout: Rs 21,58,664 [Education Milestone Payout: Rs 10,79,332 (policy year 15,16,17) and Marriage Milestone Payout: Rs 10,79,332 (policy year 25)] | Age of Child: 0 years, Child as a nominee | Sum assured multiple for marriage: 100%
    2 ABSLI Vision Star Plan, age 30 years, male, sum assured Rs.50 lakhs, premium: Rs.936511/- (including GST) premium paying term 5 years, pay frequency: annual, Assured Payout Option: Policy option B, policy term:14 years, death benefit: Rs.92,22,000 lakhs, Bonus Type: Simple Reversionary.
    ABSLI Vision Star Plan (UIN: 109N096V03) is a traditional participating life insurance plan. All terms & conditions are guaranteed throughout the policy term, except for the bonuses which would be declared at the end of each financial year. GST and any other applicable taxes will be added (extra) to your premium and levied as per extant tax laws. Some benefits are guaranteed and some benefits are variable with bonuses based on the future performance of the participating business and economic conditions. If your policy offers guaranteed returns then these will be clearly marked "guaranteed" in the illustration table on this page.
    ABSLI Child Future Assured Plan (UIN: 109N124V01) is a non-linked non-participating individual life insurance savings plan. All terms & conditions are guaranteed throughout the policy term. GST and any other applicable taxes will be added (extra) to your premium and levied as per extant tax laws. An extra premium may be charged as per our then existing underwriting guidelines for substandard lives, smokers or people having hazardous occupations etc. The insurance cover for the life insured (including minors) will commence on the policy issue date.
    In the Unit Linked Policy, the investment risk in the investment portfolio is borne by the Policyholder.
    Linked Life insurance products are different from the traditional life insurance products and are subject to the risk factors.
    Linked Insurance Products do not offer any liquidity during the first five years of the contract.
    The policyholder will not be able to withdraw/surrender the monies invested in Linked Insurance Products completely or partially till the end of the fifth year from inception.
    Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document. The premium paid in unit linked life insurance policies are subject to investment risk associated with equity markets and the unit price of the units may go up or down based on the performance of fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. Tax benefits may be available as per prevailing tax laws. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding the sale.
    For further details regarding the above-mentioned rider, please refer to the respective rider brochure(s) available on our website.
    ADV/7/23-24/1000