IDBI Federal Life Child Plans

IDBI Federal Life Insurance Co Ltd is a joint venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Ageas, a multinational insurance giant based out of Europe. It is one of the fastest growing life insurance companies and offers a diverse range of wealth management, protection and retirement solutions to all its customers. It began its operations in 2008 and they were able to achieve breakeven in just 5 years.

Through a nationwide network of 2, 964 branches of IDBI Bank and Federal Bank, and a sizeable network of advisors and partners, IDBI Federal Life Insurance has achieved presence across the length and breadth of the country. They wish to be the leading provider of wealth management and other services. The main mission is to continually strive to enhance customer experience through innovative products, efficient relationship management and excellent service delivery in a cost-effective manner.

IDBI Federal Child Plans

IDBI Federal Life Insurance Company has two child plans to its customers. While one plan is a traditional child insurance plan, the other one is a unit linked plan providing a good return through market participation. The plans are discussed below –

IDBI federal Childsurance Savings Protection Insurance Plan

Traditional money back child insurance plan which has the following characteristics:

It is issued as a participating plan which earns bonuses
Premiums are payable either for the complete plan tenure as per the Regular Pay option or for a limited plan tenure as per the Limited Pay option.
- Money backs are paid in the form of Guaranteed Annual payouts either in the last three plan years at 20%, 20% and 60% of basic Sum Assured or in the last five years of the plan at 20% of the basic Sum Assured every year.
- On maturity, the last installment of the Guaranteed Payout and accrued reversionary bonuses including any Terminal Bonus
- As the death benefit the death Sum Assured is paid which is higher of the Maturity Sum Assured or 10 or 7 times the premium payable yearly depending on the age of the policyholder. Future premiums are waived off and paid for by the company. The Guaranteed Annual Payouts will accrue when they fall due and on maturity, the vested bonuses including any Terminal Bonus are paid to the nominee
- Female lives are charged lower rates of premiums

Eligibility Details

	Minimum	Maximum
Entry Age of the parent	18 years	Regular Pay – 40 years Limited Pay – 50 years
Entry Age of the Child	1 month	18 years
Maturity Age	28 years	Regular Pay – 65 years Limited Pay – 75 years
Policy Term	10 years	25 years
Premium amount	Rs.10, 000	No limit
Sum Assured	Depends on the minimum amount of premium, tenure, and age	No limit
Premium Payment Term	Equal to policy tenure or (Term less 5 years)
Premium Paying Frequency	Yearly or monthly

IDBI Federal Wealthsurance Future Star Insurance Plan

A unit linked child insurance plan which provides market-related returns while at the same time taking care of the child’s future. The features and benefits of the plan are as follows:

Premiums under the plan can either be paid for the entire duration of the plan under the Regular Pay option or for a limited tenure under the Limited Pay option of premium payment.
The premium net of charges can be invested by the policyholder himself in a choice of differently available funds or under the Systematic Allocator Option feature provided by the company.
Under the Systematic Allocator Option, the company invests the funds initially in a low-risk fund and gradually, the funds are transferred to high aggressive fund as the plan progresses.
There is a choice of 9 funds to choose from if the policyholder wants to manage his own investments which are Equity Growth Fund, Midcap Fund, Pure Fund, Bond Fund, Income Fund, Liquid Fund, Aggressive Asset Allocator Fund, Moderate Asset Allocator Fund and Cautious Asset Allocator Fund
Guaranteed Loyalty Additions are added to the fund @3% of the average fund value in the preceding three years. These additions are made from the 10^th policy year and every 5 years thereafter.
The fund value is paid on plan maturity which can be availed either in lump sum or in installments over a period of 5 years post maturity under the Settlement Option.
In case of death of the insured during the tenure of the plan, the Sum Assured is paid immediately. Thereafter, all future premiums are waived off and the aggregate future premiums payable are credited to the fund value by the company. This fund grows till the remaining time to maturity upon which the applicable fund value is paid to the nominee.
The plan has a Wealth Care Switcher Benefit under which the Systematic Allocator Option is automatically activated on the death of the insured.
The policyholder may also avail of the Education Support Benefit under which the death benefit can be availed as money-back in the last 5 policy years after the insured’s death
Partial Withdrawals can be made to meet financial requirement post 5 years of the plan issuance. The minimum amount of withdrawal is Rs.10, 000 and the maximum amount is limited to 20% of the Fund Value
Unlimited free switches are available to switch between funds
Premium redirection facility is also available to redirect future premiums into another fund than the one originally selected.

Eligibility Details

	Minimum	Maximum
Entry Age	18 years	54 years
Maturity Age	28 years	64 years
Policy Term	10 years	25 years
Premium amount	Rs.25, 000	Rs.95, 000
Sum Assured	Higher of 10/7 times the annual premium or 0.5/0.25termannual premium	Premium paying a term2annual premium up to a maximum of 15 times the annual premium for ages less than 54 years or 10/7 times the annual premium for ages higher than 54 years
Premium Payment Term	5 years	Equal to policy term
Premium Paying Frequency	Yearly

Applying for a Child Plan from the company:

Online

The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

Applying For Child Plans through PolicyBazaar

On the PolicyBazaar homepage, click on Child Plans under the Personal tab.
Click New Quotes to compare and choose from top insurance providers.
Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.
Fill in your name, email address, city, country code, and mobile number. Click Continue.
You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.
After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.
This will take you to the insurer’s website. Fill in the necessary details to buy the plan.

Planning for the child’s future with a child plan

We need different products for different needs. While pension plans provide the much-needed corpus for our retirement, unit-linked plans provide us with the facility of capital appreciation for creating wealth. Insurance plans take care of the income protection needs and a child insurance plan takes care of our planning for our children. Every form of insurance serves a different purpose and a child plan serves the most important purpose of all – planning for our child’s future. A child plan will take care of the financial requirement which your child will face when he or she decides to pursue a higher education or gets admitted in a college.

Some important aspects of the child plan

A child plan has several unique features which differentiate it from other types of insurance plans. Let us see the different aspects of the plan:

This plan can be bought only by the person who has a minor child. As such, the child’s documents are also required when buying the plan as the proof of the child’s identity.
Most child plans provide coverage on the life of the parent while the child is the beneficiary. However, there are certain child plans in the market which actually cover the life of the child. As such, the child is called the person insured or the life insured while the parent who pays the premium is called the policyholder
If the child is covered, the life cover does not start along with the plan when the policy is issued. There is a deferment period or a waiting period whereby the company does not cover the death risk inherent in the child’s life. During the deferment period death of the insured child would include the return of premiums since the Sum Assured is not active during that time.
When the child is the life insured, he cannot be the policyholder of his own policy because he is a minor. When the child reaches maturity on achieving 18 years, he becomes a major and can become the policyholder of the policy. In that situation, on the policy anniversary which follows the child’s 18th birthday the policy’s ownership status changes hands and reverts in the name of the child. The child then becomes the policyholder and can make a fresh nomination in the policy where no nominee was required when the parent was the policyholder.
The waiver of premium rider is inbuilt within the plan and is not required to be taken as an addition. The benefit of the rider is that the premiums and subsequently the insurance plan will continue even after the death of the policyholder (parent). The premium paying responsibility is transferred to the insurance company which pays the premiums and keeps the policy running. When the policyholder dies, the death benefit is paid which the child can utilize for his immediate requirements. When the plan matures on the stipulated date, another benefit called the maturity benefit is paid which can be used by the child at that time for admission to a college or a post-graduate degree.

What documents are required to buy the plan?

For buying the child plan, the following documents need to be submitted to the insurance company:

Your identity proof which can be a copy of your passport, driving license, PAN card, Voter’s ID card, etc.
Your address proof which can be anyone among the passport, driving license, electricity or phone bill, etc.
Your date of birth proof like the passport, driving license, PAN card, etc.
The date of birth proof of the childlike his birth certificate
Passport sized photographs of both you and your child

IDBI Federal Life Child Plans – FAQs

1. How to pay a premium? What are the modes of payment available?

You can choose from ANY of the following premium modes from IDBI Life Insurance

Online Payment
Payment through IDBI & Federal Bank Branch
ECS
Payment through Advisor
Cheque facility

For payment through online, the policyholder must visit e-portal of the company.

Enter your policy number and date of Birth
Then verify your policy details
Select payment options and pay payment.

2. How can I check policy status for IDBI Federal Life child plans?

As a registered user, please visit the site

and provide the relevant policy information to enter the site and check the current status of your policy.

You can track your application from the above link in case you have recently applied.

3. What is the policy renewal process for IDBI Federal Life child plans?

As an existing IDBI customer, you can convert all your paper policies into e-Policy to conveniently pay online premiums for renewals. You can fill the e-Policy Conversion Form and submit it to your nearest IDBI Federal branch. Once done, the renewal process remains the same as paying premium online.

4. What is the company’s process to settle a claim for IDBI Federal Life child plans?

IDBI Federal Insurance company guarantees to settle your claims within 8 working days, provided all your documents are in order. For every delay thereafter, the company will pay a penalty charge of 8% to the beneficiary.

The process is simple. Fill the suitable claims form and submit the medical bills and reports and other documents as requested by the company to the nearest branch. The claim amount will be directly deposited in your bank account.

5. What is the policy cancellation process for IDBI Federal Life child plans?

It will take maximum 30 days for policy cancellation process. The IDBI policyholders must attach all the relevant policy documents along with a duly filled surrender form at any of the branch locations in their city. After receiving the documents and scrutinizing them, the refund is credited into the policyholder’s bank account as per the policy’s records, and the policy is canceled.