As parents, we wish to give the best that life has to offer to our children. While children enrich our lives, it is no secret that they also need funding for their considerable expenses. Since most of us have relatively fixed sources of income, financial planning for a child’s benefit becomes an essential part of the entire family’s budget.
Unfortunately the cost of education has risen .Every child deserves the best opportunities and options. So whether it is a foreign degree or a specialized training course, most parents would not like to deny their children any opportunity due to the lack of funds. Marriage is another expense and in India, marriages are quite expensive.
It is therefore necessary that you make carefully plan your finances for your child’s benefit.
As a careful investor your investment plan for your child should consider the following few things:
Saving regularly
Secure investment
Insurance cover
Flexibility
Guaranteed returns.
It is never too early to plan for your child’s future. The earlier you begin the more you can gather for your child’s needs
Birla Sunlife Insurance Childrens Dream Plan is a long-term unit linked insurance plan that is specially designed to help you provide the financial security to your child when she/he becomes an adult.
This plan enables you to put up funds not just for an education but for start up capital as well. You can also ensure that your child continues to enjoy the benefits of the plan even thereafter.
Education for your little one is a major concern. Professional courses like engineering, medicine or an MBA today costs between Rs. 2 lakh to Rs. 10 lakh. and with competition and increasing costs, the future expenses on a premium education are going to be much higher.
The BSLI Children’s Dream Plan is here to meet the education costs, assuring you a Guaranteed Fund value equaling all premiums paid, less charges and the Guaranteed Maturity Benefit. This fund is accumulated at 3% per annum. The higher of either the Guaranteed Fund Value or the Fund Value is paid on maturity
Make better yours child’s career
Guaranteed maturity benefit
With BSLI unique Guaranteed Maturity Options of 100%, 200% and 300%, you could provide your child the start-up capital that may be required to begin a career. Boost your child’s career and watch him/her sail ahead in life. The detail below illustrates the benefit.
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For 100% guaranteed option
At the age of 18 yrs, 100% guaranteed maturity benefit can be availed.
So Total benefit= 100%
For 200% guaranteed
At the age of 18 yrs, 100% guaranteed maturity benefit can be availed.
At the age of 19, 20, 21, 22, 23 yrs, 20% guaranteed maturity benefit can be availed.
So Total benefit= 200%
For 300% guaranteed
At the age of 18 yrs, 100% guaranteed maturity benefit can be availed.
At the age of 19, 20, 21, 22yrs, 25% guaranteed maturity benefit can be availed.
At the age of 23 yrs, 100% guaranteed maturity benefit can be availed.
So Total benefit= 300%
Investment funds
Three investment funds are available Protector, builder & enhancer. You have an option to invest in only one investment fund or in a combination of all three. Also, you can change your mind anytime for future premiums and can even switch existing investments in one investment fund to another.
Additional Protection
A basic sum assured is associated with the guaranteed benefit you choose. This amount is paid in the unfortunate event of death while the plan is in force. This plan gives you the option to increase the protection. Simply specify the amount you want(the enhanced sum assured) in addition to basic sum assured and your insurance protection will equal the sum of the basic and enhanced sum assured
Payment Mode
Premium can be paid monthly (through ECS only), quarterly, half yearly & annually. The mode of payment BSLI is offering is cash (up to Rs 50,000), cheque, credit card, salary deduction, ECS & direct debit.
Benefits
Partial Withdrawals: After the completion of 3 policy years, you are free to make partial withdrawal at any time. The minimum amount permitted for a partial withdrawal is Rs. 5,000 and the maximum is the excess of the fund value over the Guaranteed Fund Value.
Surrender: You have the freedom to surrender your policy at any time during the term of the policy. After 3 years of completion of your policy, no charges are collected for surrendering the policy.
Policy Loan
You can’t avail any loan under this plan
In the unfortunate event of your demise
Your child will receive the basic sum assured plus any enhanced sum assured you have selected.
BSLI will continue your savings on your behalf
Your savings will continue for the benefit of your child even after your unfortunate death. At that time your child will become the life insured. The new policy owner will be the person appointed by you. The BSLI Children’s Dream Plan would keep your policy alive, take care of all your premiums till maturity, and provide all benefits, in case you are no longer there.
Policy Charges
It offers discounts at higher guaranteed maturity benefit amounts based on bands provided below
Band min Guaranteed maturity benefit
Band 100% option 200% option 300% option
1 75,000 37,500 25000
2 1,50,000 75,000 50,000
3 3,00,000 1,50,000 1,00,000
4 6,00,000 3,00,000 2,00,000
5 12,00,000 6,00,000 4,00,000
The charges under this plan are designed to optimize the long term return on your investment while providing the costs of insurance, distribution and administration of your policy.
Premium Allocation charge
No premium allocation charge is deducted from your policy premium, so all of your policy premium will be invested in investment funds of your choice but in case of top up premiums 2% premium allocation charge is deducted.
Fund management charge
The daily unit price of each investment fund is adjusted to reflect the fund management charge of 1.00% per annum of the fund value. The charge is 1.00% per annum for protector, builder and 1.25% for enhancer but it may increase any time up to 1.50% per annum.
Policy administration charge
It will be deducted monthly by canceling units proportionately from each investment fund you have at that time. It is the annual rate per thousand sum assured. This charge may increase at any time after 4th policy year, to max increase of 5% per annum.
Surrender charge
It is applied when you surrender your policy in the first 3 years. The amount you will receive will be the fund value less this charge.
Revival charge
It is Rs100. it may increase any time in future, maximum up to Rs 1000.
Riders
Accidental death & dismemberment benefit
You have an option to add this in your plan. It provides 100% cover in case death due to accident, loss of more than one limb, loss of sight in both eyes, loss of one limb and sight in one eye. It provides 50% cover in loss of one limb, sight in one eye.
Grace period
A grace period of 30 days is available.
Eligibility
• The life insured must be 18 to 60 yrs of age at entry
• Your child (the nominee), must be 13 yrs or younger at entry
• The life insured must be of age 75 or younger when plan matures.
• The guaranteed maturity benefit you choose must be at least
Rs 75000 for 100% guaranteed maturity option
Rs 37500 for 200% guaranteed maturity option
Rs 25000 for 300% guaranteed maturity option
• Policy Term: 18 years, less the age of child at entry
• Partial Withdrawals: Allowed after 3 complete policy years
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