Invest in the Best Child Plan offered by SBI Life Insurance

by Archana Singh Financial Advisor

Your child is your responsibility. Your child’s future lies in your hands. As a parent, you want your child to have a financially secure life.

SBI Life insurance offers two child plans in order for you to fulfil your child’s future dreams:

SBI Life Smart Champ Insurance: This is a traditional child plan. It is a participating, non linked life insurance plan that safeguards your child’s future and education from all sorts of unfortunate events in life.

2. SBI Life Smart Scholar: This SBI Child plan is a unit linked insurance cum investment product. It offers comprehensive life cover while giving you the opportunity to create wealth through market investments.

Both the child plans have different advantages. If you are looking for only life coverage, the Smart Champ plan is right for you because it promises a huge amount of sum assured in case of your death. But if you want a plan that gives the dual benefit of protection and investment, Smart Scholar plan would be right for you.

Let us now see the important features and benefits of both the child insurance plans.

SBI Life Smart Champ Insurance

The key features of this SBI child plan are as follows:

· In case of your untimely death, your child immediately receives a lump sum assured by SBI Life.

· In case of your unfortunate death before the completion of the policy term, premiums for the remaining term are waived off. But the policy remains in force. At maturity your child receives the bonuses accrued during this period.

· Both Single and limited payment option are available in this plan.

Following are the important benefits offered by this SBI Child Plan:

· Death benefit: Immediate lump sum payable in case of the policy holder’s death during the policy tenure.

· Survival Benefit: In case you survive till the maturity death of the policy, you will receive the survival benefit. The survival benefit is25% of the sum assured plus reversionary bonus plus terminal bonuses (if any).

· Tax benefit: The premiums you pay as well as the sum assured you will receive are non taxable as per the rules of Income Tax Act, 1961.

Below are the eligibility details of this child plan offered by SBI:

Entry Age:	0-13 years (for Child)
	21-50years (for parent/Life assured)
Maximum Maturity Age :	21 years (for child
	70years(for parent/Life assured)
Policy term:	21 years minus Child’s age at the commencement of the policy
Premium paying term:	Single/Limited

Maximum Sum assured: Rs. 1Crore

SBI Life – Smart scholar

The key features of this SBI child plan are as follows:

· It is a combination of child and life insurance plan

· As a unit linked plan it gives you the opportunity to invest in stock markets and earn good returns.

· You can decide your investment strategy and choose from seven different fund options.

· Partial withdrawal is allowed after 5 years.

Following are the important benefits offered by this SBI Child Plan:

· Death Benefit: In case of your unexpected demise, your child receives the sum assured as death benefit.

· Accidental death benefit and Accidental Total and Permanent Disability benefit: This plan has these two inbuilt riders.

· Maturity benefit: You receive the fund value as soon as the policy matures.

· Tax Benefit: You are eligible to receive income tax benefits with this plan.

Below are the eligibility details of this SBI Child plan:

Entry Age:	0-17 years (for Child)
	18-57years (for parent/policy holder)
Maximum Maturity Age:	18-25 years (for child
	65years(for parent/policy holder)
Policy term	8-25years
Premium paying term	Single/Limited

The above two plans are the child insurance plans offered by SBI life. Child plans are the best instrument to invest your money for future wealth creation. Always go through the policy brochure before you decide which plan suits your financial requirements best.