As a parent, you must want your child to have higher education. But higher education is expensive. The fees at colleges are so high these days that many middle-class parents often fail to afford higher education for their children.
It is true that you need a significant amount of money to sponsor for your child’s higher education. But it is not so difficult to have your required amount of money if you have started financial planning at the right time. While doing financial planning, it is not enough to save money for your child’s education, you should also make sure that your child’s education never gets hampered due to any unfortunate event in the future. The best way to do this is to invest in a child education plan from a reputed Life Insurance Company.
SBI life Insurance offers two Child plans to financially secure your child’s future as well as to fulfill your child’s dreams in future. Here we will discuss in detail the two child plans presented by SBI Life Insurance.
SBI Life – Smart Champ Insurance
This SBI child plan is a Non-Linked Participating plan that gives comprehensive life coverage at affordable premium rates. The key features and benefits of this child education plan are as follows:
- Entry age : 21 years – 50 years (for life insured), 0 years – 13 years (for child)
- Maximum Maturity Age : 70 years (for life insured), 21 years (for child)
- Policy Term : 21 years minus child’s age at the time of Entry
- Minimum Sum assured : 1,00,000/- (and the multiples of Rs.1,000/-)
- Premium paying frequency : Single premium / Monthly/ Quarterly/ Half-yearly/ Yearly
- Minimum premium amount: Single: 66,000/- Monthly: Rs. 500/- Quarterly: Rs. 1,500/- Half-yearly: Rs. 3,000/- Yearly: Rs. 6000/-
- This SBI child Plan pays a guaranteed sum for your child’s education as soon as your child turns 18 years. The payment is made in four annual installments.
- Though it is child education plan, it also guarantees an immediate lump sum payment on the policy holder’s death.
- In case of your untimely death, the remaining premiums are waived off but the child education plan remains in force to accrue bonuses till the maturity date.
- Death Benefit
- Smart benefits (Maturity Benefits)
- Tax benefits
- Bonuses (simple reversionary bonus and terminal bonus, if any)
SBI Life – Smart Scholar
This SBI Child plan is a Unit-Linked non-participating Life insurance plan. Being a Market-linked product, this plan provides the dual benefit of insurance and investment. The key features and benefits of this SBI child plan are as follows:
- Entry age : 18 years – 57 years (for life insured), 0 years – 17 years (for child)
- Maximum Maturity Age : 65 years
- Policy term : 8 years – 25 years minus child’s age at entry
- Minimum Sum Assured : 25 times Single Premium
- Premium paying frequencies : Single payment / monthly / quarterly / half-yearly / yearly
- This SBI child plan offers the lump sum assured to your child in case of your untimely death.
- In case of your death, all future premiums are waived off and the policy remains in force till maturity.
- Though it cannot be categorized as a proper child education plan, but market-linked returns are generally huge enough to take care of your child’s educational expenses.
- Accidental Death benefit and Accidental Total and Permanent Disability benefit are the two inbuilt riders of this plan.
- Death Benefit
- Maturity benefit
- Tax Benefits
The two SBI child Plans mentioned above are the best options for securing your child’s future. The first plan is a pure child education plan. The second plan is a pure child insurance plan but it is a ULIP product so the returns of the plan may be better based on market performance.
You May Also Know About: 5 Best Child Insurance Plans in India