Comparison
Content
Sukanya Samriddhi Account for the girl child has become a favourite investment option for long term investors wishing to
build up wealth for the girl’s marriage or education. Sukanya yojana offers tax free returns. The interest rate for this scheme
is 9.2% for the financial year 2015-2016 and it was 9.1% for the previous financial year 2014-2015. Check outmaturity
value calculation for SSA.
Although there are many investment instruments available in the market which are specially designed for child’s future such
as public provident fund/child mutual fund/bank account for child/fixed deposits, the zero risk factor and high interest rate
gives sukanya samriddhi yojana a higher edge helping in beating the inflation to a good extent. Explore thedifferences and
similarities between public provident fund (PPF) and Sukanya Samriddhi Scheme.
Compared below are the features of SSA and Children Mutual Fund which will help in choosing a best investment option for
your child
Sukanya Samriddhi Vs. Children Mutual Fund
SR.NO
S U K A N YA S A M R I D D H I
F E AT U R E S
.
CHILDREN MUTUAL FUND
ACCOUNT
1
On whose
name
account can
be opened
Only on girl's name
Boy or girl
2
How many
accounts
can be
opened per
child
1 per child
No limit
3
Minimum
age limit to
open
account
As soon as girl child is
born a/c can be
opened
Varies for each fund house.
For e.g. Tata Young Citizen's
Fund has min. age limit of 3
months
4
Maximum
age limit to
open
account
10 years
18 years
5
Documents
required to
open the
account
Application form, birth
certificate of girl, ID &
address proof of
parents
Photocopy, address proof/ID
proof, PAN card
6
How many
time you can
deposit
money in an
year
Unlimited
Unlimited
7
Interest Rate
For 2014-2015: 9.1%
For 2015-2016: 9.2%
Not fixed. Since it is linked
to market, interests keeps
on varying
8
Tax Benefit
Under section 80C on
contribution. No tax
Depends on which plan you
choose. E.g. Income from
SR.NO
S U K A N YA S A M R I D D H I
F E AT U R E S
.
CHILDREN MUTUAL FUND
ACCOUNT
on interest earned
SBI's magnum children's
fund is exempt from the
income tax under section
10(23D)
9
Partial
withdrawal
Yes. Once girl crosses
18 years of age, 50%
can be withdrawn
Mostly after 3 years
depending on the fund's
terms and conditions
10
Where can
you open the
account?
Post offices and 28
authorized banks
Fund houses such as - Tata
Mutual Fund, Kotak, SBI and
many others
11
Risk factor
involved
No
Yes, it's very high. Since it is
linked to market and other
factors
12
Nomination
facility
No
Yes. Many fund houses
provide this.
13
Other
benefits
such as
insurance
cover etc.
No
Yes. Varies for each fund
house
14
Mode of
deposit
Cash/Cheque/Demand
Draft
Cash/Cheque/Demand
Draft/ECS/Credit Card/Debit
Card
15
Can NRI
deposit
As of now - NO
Most of the fund houses
allow provided their child is
also an NRI
16
Maturity
When the girl child
reaches 21years
Can be withdrawn any time
(subject to exit load)
17
Minimum
deposit/year
Rs.1000
Rs.500
18
Maximum
deposit/year
Rs.1,50,000
No limit
19
Where is the
money
invested
For development of
country such as
infrastructure and
others
Equities, debt instruments,
securitized debt and other
instruments
20
Penalty, if
money is not
deposited in
an year
Rs.50
No penalty
21
Ideal for
Long term
Long term
22
Application
fees
No
Yes. Varies for each fund
house
PreviousNext
Note: Details mentioned above for children's mutual fund may vary for each fund.
Final Note: Although both have their own pros and cons, investments in Sukanya Samriddhi Yojana can be made if you
do not want to take risk with your money. For investors who are ready to take high risks, mutual fund is a better option. Also
fund houses employ quality professional experts who diversify the money in various instruments.
Listed below are few funds for children:
1.
HDFC Children’s Gift Fund
2.
SBI Magnum Children’s Benefit Plan
3.
Tata Young Citizen’s Fund
Best Investment Plan for Children: Mutual Fund?
ShareThis
To win a race, they say, it's not only important to run fast, but also to start early. As
parents, you want the best for your child and to give the best to your child
tomorrow, you will have to start today. If you start systematic investing today, by
the time your child grows up, you would have a sufficient corpus to care of their
higher education or wedding expenses. But with so many instruments available in
the market which promise guaranteed returns (or so to say), which one do you
chose?
Each instrument in the market fits a particular need and to select the best
investment plan for your child, we need to first understand what our goals are.
You don't have a ready capital to invest directly right-away. The capital needs to be
built in terms of savings over the years.
You have sufficient time – your child is just in pre-school and you have close to 1518 years to build a good sum of money.
And since we have time, we could also be a bit aggressive in our portfolio selection
and bet a part of the yearly savings in equity instruments. However, a fair share
needs to be invested in asset classes too like gold for example.
We would also need to factor-in the ever increasing cost of education. Each year,
the cost of education especially, higher education breaks new limits. With the rising
inflation, we need a vehicle which will factor in the inflation and give you returns
over and above that.
Child Mutual Fund plans (e.g. ICICI Prudential Child Care Gift Plan, SBI Magnum
Children Benefit, HDFC Children's Gift Investment Plan) are exactly built around
these needs. Mutual Funds like these offer the following features:
Diversified Allocation: Your funds are invested across various asset and equity
classes providing you the right mix of risk exposure.
Low Cost: Mutual Funds charge less than 2.25% per annum as expenses which is
way better than spending as high as 6% on ULIPs.
Professional Portfolio Management: With Mutual Funds, you get the assurance that
your money is in the hands of professionals. You can get them to take up the
cumbersome and tricky task of timing the market and deciding the right mix for
investing your money.
Liquidity: Unlike ULIPs, one is not penalised for exiting a child mutual fund plan
prematurely. In case one is in dire need of liquid money, one can always stop and
exit which makes Mutual Fund SIPs highly liquid.
The best possible investment plan for your child's bright future is to invest in your
child's education and taking all these factors into consideration, Mutual Funds are
the best possible way which will help you give him that.
- See more at: LIC Child Career Plan
LIC Child Career Plan is a Money Back Endowment Plan for the benefit of a child such that Sum Assured plus Bonus is paid
immediately to the nominee on death of the Life Insured after commencement of risk. However, if the child outlives the entire tenure,
then he actually received 105% of the Sum Assured. He would receive 30% of the Sum Assured along with vested Simple
Reversionary Bonuses 5 years before the date of expiry of policy term. Then he would receive 15% of the Sum Assured in the last 4
years, 3 years, 2 years and 1 year before Maturity of the policy. Also, when the policy matures, he would receive the remaining 15%
of the Sum Assured along with Final Addition Bonus, if any.
Key Features of LIC Child Career Plan
This plan provides the risk cover on the life of child not only during the policy term but also during the extended term of 7
years post maturity.
The Survival Benefit is 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date
of expiry of policy term and 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the
policy.
Maturity Benefit is 15% of the Sum Assured along with Final Addition Bonus, if any declared.
There is an additional rider of Premium Waiver Benefit.
Benefits you get from LIC Child Career Plan
Death Benefit – In case of death of the Life Insured, i.e. child after risk commencement, the nominee would receive the Sum
Assured plus Bonus.
However, if the Life Insured, i.e. the child dies before risk commencement, then the nominee would receive all basic premiums paid
till date + 3% p.a. interest compounded annually.
Survival Benefit – On Survival of the Life Insured, i.e. child, he receives 30% of the Sum Assured along with vested Simple
Reversionary Bonuses 5 years before the date of expiry of policy term and 15% of the Sum Assured in the last 4 years, 3 years, 2
years and 1 year before Maturity of the policy
Maturity Benefit – On maturity, the Life Insured, i.e. the child gets the remaining 15% of the Sum Assured plus the final addition
Bonus.
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each
year under section 80C
Eligibility conditions and other restrictions in LIC Child Career Plan
Minimum
Maximum
Sum Assured (in Rs.)
1 lakh
1 crore
Policy Term (in years)
11
27
Premium Payment Term (in years)
6
Policy Term- 5
Entry Age of Life Insured (in years)
0
12
Age at Maturity (in years)
23
27
Single Premium (in Rs.)
-
Payment modes
Yearly, Half-Yearly, Quarterly & SSS
Sample illustration of LIC Child Career Plan
Premium = Rs.4513/- , Age of Life Insured, i.e. Child = 0 year
Policy Term = 25 years, Payment Mode = Yearly
Premium Paying Term = 20 years, Sum Assured = Rs 1,00,000
Total Investment = Rs 4513 X 20 = Rs 90260/-
Guaranteed Return is
Year 20 = Rs 30000/- + Bonus (Variable)
Year 21 = Rs 15000/Year 22 = Rs 15000/Year 23 = Rs 15000/Year 24 = Rs 15000/Maturity Benefit at the End of Year 25 = Rs 15000/- + Bonus (Variable)
Additional Features and Benefits of LIC Child Career Plan
Riders – There is 1 additional rider available in this policy
-
Premium Waiver Benefit rider.
What happens if?
You stop paying the premium – The policy will lapse if the premium stops. However if at least 3 years’ premium shave been paid
then the policy acquires a Paid Up Value and the risk cover continues at the reduced Sum Assured. The reduced Sum Assured and
the accrued Bonus would be payable on Maturity or on earlier death. It can also be revived within 5 years from the due date of first
unpaid premium.
You want to surrender the policy – Surrender Value is paid if premiums for 3 years have been paid up. Before commencement of
risk, the Guaranteed Surrender Value is 90% of the total amount of premiums paid – 1 st year premium. After commencement of risk,
the Guaranteed Surrender Value is 90% of the total amount of premiums paid before commencement of risk – 1 st year premium +
30% of premiums paid on and after the commencement of risk.
You want a loan against your policy – Loan is not available under this policy.
http://flame.org.in/knowledgecenter/investmentplan_children.aspx#sthash.mRCtCqe
7.dpuf
Top 5 Child Insurance Plans to Invest in 2015
Child insurance plans are the best tools to manage your child’s future financial
needs. As it is a long-term investment you can slowly build the corpus with your
current savings and ensure that you don’t hold back on your child’s future.
Though, we all agree on the importance of investing in a child plan, what confuses
us, is the choice of plans that the market offers. So many child plans and each of
them with an awesome benefit and a strong marketing pitch that it is often difficult
to see through them clearly.
So, we did some background checks and market trend analysis to give you the best
five child insurance plans to invest in 2015.
1. LIC New Children’s Money Back Policy
New Children’s Money BackPlanis a non-linked plan, with-profit regular premium
payment policy particularly intended to meet educational, marriage and other
needs of growing children through survival benefits. This plan also provides risk
cover to the insured child. This plan has benefits of both saving as well as
protection.
Eligibility Conditions:
Minimum Basic Sum Assured : Rs. 100,000Maximum Basic Sum Assured : No
LimitThe Basic Sum Assured shall be in multiples of Rs. 10,000/-Entry Age for Life
Assured : 0-12 years (last birthday)Minimum/ Maximum Maturity Age for Life
Assured: 25 years (last birthday)Policy Term/Premium Paying Term : [25 – Age at
entry] years
Benefits:
Death Benefit:
Death of life assured before the date of commencement of risk: Return of the
premium excluding extra premium, taxes and rider premium, if any.Death of life
assured after the date of commencement of risk: Sum Assured + Revisionary
Bonuses + Final Additional Bonus
Maturity Benefit: On the Life assured surviving the stipulated date of maturity, Sum
Assured on Maturity (40% of the Basic Sum Assured) + Simple Reversionary
Bonuses + Final Additional Bonus, if any, shall be payable.
Survival Benefit: On the Life Assured surviving the policy anniversary after the
completion of ages 18 years, 20 years and 22 years, with 20% of the Basic Sum
Assured on each occasion shall be payable. It should be noted that the policy should
be in full force.
Why Choose LIC New Children’s Money Back Policy ?Low premium rates
Participation in Profits: The policy shall participate in profits of the corporation and
will offer simple reversionary.Flexibility in Rebates- The policy holder has the choice
to select either mode rebate or high sum assured rebate.Loan Facility is available
under LIC New Children’s money back Plan.2. LIC Child Carrier Plan
LIC Child Career Plan is a Money Back Endowment Plan. It is particularly designed to
meet the ever-increasing educational and other needs of growing children. In this
plan the sum assured plus bonus is paid straight away to the nominee on death of
the life insured after commencement of risk. It provides risk cover on the life of child
not only during the policy term but also during the extended term (i.e. 7 years after
the expiry of policy term). When the policy matures, the child would receive the
remaining 15% of the sum assured along with final addition bonus, if any.
Eligibility Conditions:
Minimum Basic Sum Assured : Rs. 100,000Maximum Basic Sum Assured : Rs. 1
CroreEntry Age for Life Assured : 0-12 years (last birthday)Minimum/ Maximum
Maturity Age for Life Assured: 23-25 years (last birthday)Policy Term/Premium
Paying Term : 11-27 yearsPayment Modes – Yearly, Half-yearly, Quaterly &
SSSPremium paying Term – 6 years or Term minus 5years.
Premium Waiver Benefit:
The proposer can go for this benefit if aged between 18 and 55 and is medically fit.
Under this benefit waiver of premiums will be provided on death of the proposer.
Surrender Value:
The policy can be surrendered after paying premiums for at least three full years.
The guaranteed surrender value will be as under:
Before commencement of risk: 90% of the total amount of premiums paid. The
premiums for the first year will be excluded.After commencement of risk: 90% of
the total amount of premiums (excluding premium for the first year) paid before
commencement of risk and after the commencement of risk 30% of premiums will
be paid.
Death Benefit:
On death after the date of commencement of risk: If death occurs within the period
from date of commencement of risk to 5 years before the date of expiry of policy
term: Sum Assured + Vested Simple Reversionary Bonuses + Final bonus (if any)If
death occurs within 5 years before the date of expiry of policy term: Sum Assured +
Final bonus (if any)On death during the extended term: Sum Assured is payable.On
death before the date of commencement of risk: All the premiums paid (excluding
extra premium + premium for premium waiver benefit (if any) + interest of 3% p.a
compounding yearly.
Why Choose LIC Child Career Plan ?
Periodic PayoutBonus AdditionsWaiver of premium rider availableAuto Cover3. BSLI
Vision Star Plan
BSLI Vision Star Plan is suitable for you, if your intention is to get regular assured
payouts for financing your child’s education and securing child’s future even in your
absence with all-inclusive financial protection.
Eligibility Conditions:
Minimum Basic Sum Assured : Rs. 100,000Entry Age for Life Assured : 18-55
YearsMinimum/ Maximum Maturity Age for Life Assured: 75 YearsPolicy
Term/Premium Paying Term Option A: 16-23 YearsOption B: 14-21 Years Payment
Modes – Yearly, Half-yearly, Quaterly & MonthlyPremium Paying Term – 5-12 Years
Death Benefit:
In case of death of the life insured during the policy term, the nominee will get:
Sum assuredAssured payouts on scheduled datesNo premiums are required to be
paid in futureBonuses accured till policy maturity date + Terminal Bonus (if any) will
be paid on the maturity of the policy.4. PNB Metlife Smart Child
Eligibility Conditions:
Minimum Annualised Premium: Rs. 18,000 p.a.Maximum Annualised Premium: Till
35 Years: 2 Lakh36-45 Years: 1.25 LakhAbove 46 Years: 1 LakhEntry Age for Life
Assured : 18-55 YearsEntry Age for Beneficiary: 90 days- 17 daysSum Assured: 10
times the chooosen Annualised Premium onlyMinimum/ Maximum Maturity Age for
Life Assured: 23-25 years (last birthday)Policy Term/Premium Paying Term : 10, 15 &
20 YearsPayment Modes – Yearly, Half-yearly, Quarterly & PSP (Payroll Saving
Program)Premium paying Term – 6 years or Term minus 5years.
Maturity Benefit
At the end of the policy term, the beneficiary will get fund value along with loyalty
additions (if any).
Death Benefit
In case of insured’s/Policyholder’s sudden demise, the nominee will get following
benefits:
Higher of Sum Assured or 105% of the Total Regular Premium paidFuture Premiums
payments under the Policy will close down. Additionally, the PNB MetLife will credit
on a regular basis an amount equivalent to one annualized regular premium as a
part of Premium Waiver Benefit (PWB) on a monthly basis into Policyholder’s Fund.
Why Choose PNB Metlife Smart Child?
Reasonably priced investments with annual premium starting from Rs.18,000
p.a.PNB MetLife takes care of the premium in case of inopportune demise of the
parent.Liquidity with partial withdrawals and unlimited switches to manage your
funds.Systematic transfer options to assist you get the best of equity markets.5.
Kotak Headstart Child Assure
Eligibility Conditions:
Maximum Basic Sum Assured : No LimitEntry Age for Life Assured : 28-70
yearsPolicy Term: 10-25 yearsPremium Paying Term: Policy term of 10 Years: 5
YearsPolicy term of 15-25 Years: 10 Years Payment Modes – Yearly and Half-yearly
Death Benefit: In event of death of the Life Insured, the beneficiary will get Triple
Benefit as mentioned below:
Basic sum assured paid without any delay.Premium Waiver - Premium payment
obligation closes down and all future premiums will be added to the fund value.The
policy will continue and the fund value will be paid at maturity.
Maturity Benefit
At maturity you can take the full fund value to meet the financial needs of your
child. Moreover, you can also select to collect the maturity proceeds partly in cash
and the balance by way of installments, for up to 5 years after maturity, by
choosing our settlement option.
Why Choose Kotak Headstart Child Assure ?
Guarantee financial security of your child through Triple BenefitCreate affluence for
your child's future financial needsInvest in an extensive range of funds
build up wealth for the girl’s marriage or education. Sukanya yojana offers tax free returns. The interest rate for this scheme
is 9.2% for the financial year 2015-2016 and it was 9.1% for the previous financial year 2014-2015. Check outmaturity
value calculation for SSA.
Although there are many investment instruments available in the market which are specially designed for child’s future such
as public provident fund/child mutual fund/bank account for child/fixed deposits, the zero risk factor and high interest rate
gives sukanya samriddhi yojana a higher edge helping in beating the inflation to a good extent. Explore thedifferences and
similarities between public provident fund (PPF) and Sukanya Samriddhi Scheme.
Compared below are the features of SSA and Children Mutual Fund which will help in choosing a best investment option for
your child
Sukanya Samriddhi Vs. Children Mutual Fund
SR.NO
S U K A N YA S A M R I D D H I
F E AT U R E S
.
CHILDREN MUTUAL FUND
ACCOUNT
1
On whose
name
account can
be opened
Only on girl's name
Boy or girl
2
How many
accounts
can be
opened per
child
1 per child
No limit
3
Minimum
age limit to
open
account
As soon as girl child is
born a/c can be
opened
Varies for each fund house.
For e.g. Tata Young Citizen's
Fund has min. age limit of 3
months
4
Maximum
age limit to
open
account
10 years
18 years
5
Documents
required to
open the
account
Application form, birth
certificate of girl, ID &
address proof of
parents
Photocopy, address proof/ID
proof, PAN card
6
How many
time you can
deposit
money in an
year
Unlimited
Unlimited
7
Interest Rate
For 2014-2015: 9.1%
For 2015-2016: 9.2%
Not fixed. Since it is linked
to market, interests keeps
on varying
8
Tax Benefit
Under section 80C on
contribution. No tax
Depends on which plan you
choose. E.g. Income from
SR.NO
S U K A N YA S A M R I D D H I
F E AT U R E S
.
CHILDREN MUTUAL FUND
ACCOUNT
on interest earned
SBI's magnum children's
fund is exempt from the
income tax under section
10(23D)
9
Partial
withdrawal
Yes. Once girl crosses
18 years of age, 50%
can be withdrawn
Mostly after 3 years
depending on the fund's
terms and conditions
10
Where can
you open the
account?
Post offices and 28
authorized banks
Fund houses such as - Tata
Mutual Fund, Kotak, SBI and
many others
11
Risk factor
involved
No
Yes, it's very high. Since it is
linked to market and other
factors
12
Nomination
facility
No
Yes. Many fund houses
provide this.
13
Other
benefits
such as
insurance
cover etc.
No
Yes. Varies for each fund
house
14
Mode of
deposit
Cash/Cheque/Demand
Draft
Cash/Cheque/Demand
Draft/ECS/Credit Card/Debit
Card
15
Can NRI
deposit
As of now - NO
Most of the fund houses
allow provided their child is
also an NRI
16
Maturity
When the girl child
reaches 21years
Can be withdrawn any time
(subject to exit load)
17
Minimum
deposit/year
Rs.1000
Rs.500
18
Maximum
deposit/year
Rs.1,50,000
No limit
19
Where is the
money
invested
For development of
country such as
infrastructure and
others
Equities, debt instruments,
securitized debt and other
instruments
20
Penalty, if
money is not
deposited in
an year
Rs.50
No penalty
21
Ideal for
Long term
Long term
22
Application
fees
No
Yes. Varies for each fund
house
PreviousNext
Note: Details mentioned above for children's mutual fund may vary for each fund.
Final Note: Although both have their own pros and cons, investments in Sukanya Samriddhi Yojana can be made if you
do not want to take risk with your money. For investors who are ready to take high risks, mutual fund is a better option. Also
fund houses employ quality professional experts who diversify the money in various instruments.
Listed below are few funds for children:
1.
HDFC Children’s Gift Fund
2.
SBI Magnum Children’s Benefit Plan
3.
Tata Young Citizen’s Fund
Best Investment Plan for Children: Mutual Fund?
ShareThis
To win a race, they say, it's not only important to run fast, but also to start early. As
parents, you want the best for your child and to give the best to your child
tomorrow, you will have to start today. If you start systematic investing today, by
the time your child grows up, you would have a sufficient corpus to care of their
higher education or wedding expenses. But with so many instruments available in
the market which promise guaranteed returns (or so to say), which one do you
chose?
Each instrument in the market fits a particular need and to select the best
investment plan for your child, we need to first understand what our goals are.
You don't have a ready capital to invest directly right-away. The capital needs to be
built in terms of savings over the years.
You have sufficient time – your child is just in pre-school and you have close to 1518 years to build a good sum of money.
And since we have time, we could also be a bit aggressive in our portfolio selection
and bet a part of the yearly savings in equity instruments. However, a fair share
needs to be invested in asset classes too like gold for example.
We would also need to factor-in the ever increasing cost of education. Each year,
the cost of education especially, higher education breaks new limits. With the rising
inflation, we need a vehicle which will factor in the inflation and give you returns
over and above that.
Child Mutual Fund plans (e.g. ICICI Prudential Child Care Gift Plan, SBI Magnum
Children Benefit, HDFC Children's Gift Investment Plan) are exactly built around
these needs. Mutual Funds like these offer the following features:
Diversified Allocation: Your funds are invested across various asset and equity
classes providing you the right mix of risk exposure.
Low Cost: Mutual Funds charge less than 2.25% per annum as expenses which is
way better than spending as high as 6% on ULIPs.
Professional Portfolio Management: With Mutual Funds, you get the assurance that
your money is in the hands of professionals. You can get them to take up the
cumbersome and tricky task of timing the market and deciding the right mix for
investing your money.
Liquidity: Unlike ULIPs, one is not penalised for exiting a child mutual fund plan
prematurely. In case one is in dire need of liquid money, one can always stop and
exit which makes Mutual Fund SIPs highly liquid.
The best possible investment plan for your child's bright future is to invest in your
child's education and taking all these factors into consideration, Mutual Funds are
the best possible way which will help you give him that.
- See more at: LIC Child Career Plan
LIC Child Career Plan is a Money Back Endowment Plan for the benefit of a child such that Sum Assured plus Bonus is paid
immediately to the nominee on death of the Life Insured after commencement of risk. However, if the child outlives the entire tenure,
then he actually received 105% of the Sum Assured. He would receive 30% of the Sum Assured along with vested Simple
Reversionary Bonuses 5 years before the date of expiry of policy term. Then he would receive 15% of the Sum Assured in the last 4
years, 3 years, 2 years and 1 year before Maturity of the policy. Also, when the policy matures, he would receive the remaining 15%
of the Sum Assured along with Final Addition Bonus, if any.
Key Features of LIC Child Career Plan
This plan provides the risk cover on the life of child not only during the policy term but also during the extended term of 7
years post maturity.
The Survival Benefit is 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date
of expiry of policy term and 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the
policy.
Maturity Benefit is 15% of the Sum Assured along with Final Addition Bonus, if any declared.
There is an additional rider of Premium Waiver Benefit.
Benefits you get from LIC Child Career Plan
Death Benefit – In case of death of the Life Insured, i.e. child after risk commencement, the nominee would receive the Sum
Assured plus Bonus.
However, if the Life Insured, i.e. the child dies before risk commencement, then the nominee would receive all basic premiums paid
till date + 3% p.a. interest compounded annually.
Survival Benefit – On Survival of the Life Insured, i.e. child, he receives 30% of the Sum Assured along with vested Simple
Reversionary Bonuses 5 years before the date of expiry of policy term and 15% of the Sum Assured in the last 4 years, 3 years, 2
years and 1 year before Maturity of the policy
Maturity Benefit – On maturity, the Life Insured, i.e. the child gets the remaining 15% of the Sum Assured plus the final addition
Bonus.
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each
year under section 80C
Eligibility conditions and other restrictions in LIC Child Career Plan
Minimum
Maximum
Sum Assured (in Rs.)
1 lakh
1 crore
Policy Term (in years)
11
27
Premium Payment Term (in years)
6
Policy Term- 5
Entry Age of Life Insured (in years)
0
12
Age at Maturity (in years)
23
27
Single Premium (in Rs.)
-
Payment modes
Yearly, Half-Yearly, Quarterly & SSS
Sample illustration of LIC Child Career Plan
Premium = Rs.4513/- , Age of Life Insured, i.e. Child = 0 year
Policy Term = 25 years, Payment Mode = Yearly
Premium Paying Term = 20 years, Sum Assured = Rs 1,00,000
Total Investment = Rs 4513 X 20 = Rs 90260/-
Guaranteed Return is
Year 20 = Rs 30000/- + Bonus (Variable)
Year 21 = Rs 15000/Year 22 = Rs 15000/Year 23 = Rs 15000/Year 24 = Rs 15000/Maturity Benefit at the End of Year 25 = Rs 15000/- + Bonus (Variable)
Additional Features and Benefits of LIC Child Career Plan
Riders – There is 1 additional rider available in this policy
-
Premium Waiver Benefit rider.
What happens if?
You stop paying the premium – The policy will lapse if the premium stops. However if at least 3 years’ premium shave been paid
then the policy acquires a Paid Up Value and the risk cover continues at the reduced Sum Assured. The reduced Sum Assured and
the accrued Bonus would be payable on Maturity or on earlier death. It can also be revived within 5 years from the due date of first
unpaid premium.
You want to surrender the policy – Surrender Value is paid if premiums for 3 years have been paid up. Before commencement of
risk, the Guaranteed Surrender Value is 90% of the total amount of premiums paid – 1 st year premium. After commencement of risk,
the Guaranteed Surrender Value is 90% of the total amount of premiums paid before commencement of risk – 1 st year premium +
30% of premiums paid on and after the commencement of risk.
You want a loan against your policy – Loan is not available under this policy.
http://flame.org.in/knowledgecenter/investmentplan_children.aspx#sthash.mRCtCqe
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Top 5 Child Insurance Plans to Invest in 2015
Child insurance plans are the best tools to manage your child’s future financial
needs. As it is a long-term investment you can slowly build the corpus with your
current savings and ensure that you don’t hold back on your child’s future.
Though, we all agree on the importance of investing in a child plan, what confuses
us, is the choice of plans that the market offers. So many child plans and each of
them with an awesome benefit and a strong marketing pitch that it is often difficult
to see through them clearly.
So, we did some background checks and market trend analysis to give you the best
five child insurance plans to invest in 2015.
1. LIC New Children’s Money Back Policy
New Children’s Money BackPlanis a non-linked plan, with-profit regular premium
payment policy particularly intended to meet educational, marriage and other
needs of growing children through survival benefits. This plan also provides risk
cover to the insured child. This plan has benefits of both saving as well as
protection.
Eligibility Conditions:
Minimum Basic Sum Assured : Rs. 100,000Maximum Basic Sum Assured : No
LimitThe Basic Sum Assured shall be in multiples of Rs. 10,000/-Entry Age for Life
Assured : 0-12 years (last birthday)Minimum/ Maximum Maturity Age for Life
Assured: 25 years (last birthday)Policy Term/Premium Paying Term : [25 – Age at
entry] years
Benefits:
Death Benefit:
Death of life assured before the date of commencement of risk: Return of the
premium excluding extra premium, taxes and rider premium, if any.Death of life
assured after the date of commencement of risk: Sum Assured + Revisionary
Bonuses + Final Additional Bonus
Maturity Benefit: On the Life assured surviving the stipulated date of maturity, Sum
Assured on Maturity (40% of the Basic Sum Assured) + Simple Reversionary
Bonuses + Final Additional Bonus, if any, shall be payable.
Survival Benefit: On the Life Assured surviving the policy anniversary after the
completion of ages 18 years, 20 years and 22 years, with 20% of the Basic Sum
Assured on each occasion shall be payable. It should be noted that the policy should
be in full force.
Why Choose LIC New Children’s Money Back Policy ?Low premium rates
Participation in Profits: The policy shall participate in profits of the corporation and
will offer simple reversionary.Flexibility in Rebates- The policy holder has the choice
to select either mode rebate or high sum assured rebate.Loan Facility is available
under LIC New Children’s money back Plan.2. LIC Child Carrier Plan
LIC Child Career Plan is a Money Back Endowment Plan. It is particularly designed to
meet the ever-increasing educational and other needs of growing children. In this
plan the sum assured plus bonus is paid straight away to the nominee on death of
the life insured after commencement of risk. It provides risk cover on the life of child
not only during the policy term but also during the extended term (i.e. 7 years after
the expiry of policy term). When the policy matures, the child would receive the
remaining 15% of the sum assured along with final addition bonus, if any.
Eligibility Conditions:
Minimum Basic Sum Assured : Rs. 100,000Maximum Basic Sum Assured : Rs. 1
CroreEntry Age for Life Assured : 0-12 years (last birthday)Minimum/ Maximum
Maturity Age for Life Assured: 23-25 years (last birthday)Policy Term/Premium
Paying Term : 11-27 yearsPayment Modes – Yearly, Half-yearly, Quaterly &
SSSPremium paying Term – 6 years or Term minus 5years.
Premium Waiver Benefit:
The proposer can go for this benefit if aged between 18 and 55 and is medically fit.
Under this benefit waiver of premiums will be provided on death of the proposer.
Surrender Value:
The policy can be surrendered after paying premiums for at least three full years.
The guaranteed surrender value will be as under:
Before commencement of risk: 90% of the total amount of premiums paid. The
premiums for the first year will be excluded.After commencement of risk: 90% of
the total amount of premiums (excluding premium for the first year) paid before
commencement of risk and after the commencement of risk 30% of premiums will
be paid.
Death Benefit:
On death after the date of commencement of risk: If death occurs within the period
from date of commencement of risk to 5 years before the date of expiry of policy
term: Sum Assured + Vested Simple Reversionary Bonuses + Final bonus (if any)If
death occurs within 5 years before the date of expiry of policy term: Sum Assured +
Final bonus (if any)On death during the extended term: Sum Assured is payable.On
death before the date of commencement of risk: All the premiums paid (excluding
extra premium + premium for premium waiver benefit (if any) + interest of 3% p.a
compounding yearly.
Why Choose LIC Child Career Plan ?
Periodic PayoutBonus AdditionsWaiver of premium rider availableAuto Cover3. BSLI
Vision Star Plan
BSLI Vision Star Plan is suitable for you, if your intention is to get regular assured
payouts for financing your child’s education and securing child’s future even in your
absence with all-inclusive financial protection.
Eligibility Conditions:
Minimum Basic Sum Assured : Rs. 100,000Entry Age for Life Assured : 18-55
YearsMinimum/ Maximum Maturity Age for Life Assured: 75 YearsPolicy
Term/Premium Paying Term Option A: 16-23 YearsOption B: 14-21 Years Payment
Modes – Yearly, Half-yearly, Quaterly & MonthlyPremium Paying Term – 5-12 Years
Death Benefit:
In case of death of the life insured during the policy term, the nominee will get:
Sum assuredAssured payouts on scheduled datesNo premiums are required to be
paid in futureBonuses accured till policy maturity date + Terminal Bonus (if any) will
be paid on the maturity of the policy.4. PNB Metlife Smart Child
Eligibility Conditions:
Minimum Annualised Premium: Rs. 18,000 p.a.Maximum Annualised Premium: Till
35 Years: 2 Lakh36-45 Years: 1.25 LakhAbove 46 Years: 1 LakhEntry Age for Life
Assured : 18-55 YearsEntry Age for Beneficiary: 90 days- 17 daysSum Assured: 10
times the chooosen Annualised Premium onlyMinimum/ Maximum Maturity Age for
Life Assured: 23-25 years (last birthday)Policy Term/Premium Paying Term : 10, 15 &
20 YearsPayment Modes – Yearly, Half-yearly, Quarterly & PSP (Payroll Saving
Program)Premium paying Term – 6 years or Term minus 5years.
Maturity Benefit
At the end of the policy term, the beneficiary will get fund value along with loyalty
additions (if any).
Death Benefit
In case of insured’s/Policyholder’s sudden demise, the nominee will get following
benefits:
Higher of Sum Assured or 105% of the Total Regular Premium paidFuture Premiums
payments under the Policy will close down. Additionally, the PNB MetLife will credit
on a regular basis an amount equivalent to one annualized regular premium as a
part of Premium Waiver Benefit (PWB) on a monthly basis into Policyholder’s Fund.
Why Choose PNB Metlife Smart Child?
Reasonably priced investments with annual premium starting from Rs.18,000
p.a.PNB MetLife takes care of the premium in case of inopportune demise of the
parent.Liquidity with partial withdrawals and unlimited switches to manage your
funds.Systematic transfer options to assist you get the best of equity markets.5.
Kotak Headstart Child Assure
Eligibility Conditions:
Maximum Basic Sum Assured : No LimitEntry Age for Life Assured : 28-70
yearsPolicy Term: 10-25 yearsPremium Paying Term: Policy term of 10 Years: 5
YearsPolicy term of 15-25 Years: 10 Years Payment Modes – Yearly and Half-yearly
Death Benefit: In event of death of the Life Insured, the beneficiary will get Triple
Benefit as mentioned below:
Basic sum assured paid without any delay.Premium Waiver - Premium payment
obligation closes down and all future premiums will be added to the fund value.The
policy will continue and the fund value will be paid at maturity.
Maturity Benefit
At maturity you can take the full fund value to meet the financial needs of your
child. Moreover, you can also select to collect the maturity proceeds partly in cash
and the balance by way of installments, for up to 5 years after maturity, by
choosing our settlement option.
Why Choose Kotak Headstart Child Assure ?
Guarantee financial security of your child through Triple BenefitCreate affluence for
your child's future financial needsInvest in an extensive range of funds
