Child Future Genius Education Plan

The plans provide multiple benefits to children in the presence or absence of their parents. The different insurance plans offer other benefits and flexibility. These are discussed elaborately in subsequent segments below.

Types of Child Future Genius Education Plans

There are various child future genius education plans to match the demand and requirements of the beneficiaries and their families. The types of plans are discussed below:

1. Single-Premium Child Plan

   In this type of policy, the policyholders will pay a single premium amount on the due date of premium payment. They are required to pay a lump sum amount annually. It reduces the stress of paying premiums on a regular basis.

2. Regular Premium Child Plan

   The policyholders can choose different premium payment options such as monthly, quarterly, half-yearly, or yearly. They are required to pay premiums as per the selected premium terms.

3. Child ULIP

   The insurance plan allows the policyholders to invest in market-linked funds such as equity, debt, or both to earn more benefits and ensure the security of the investment. The ULIP child plan also offers life cover to the beneficiary. In case of the policyholder’s untimely death, the beneficiary will not be required to pay the premiums while being entitled to the maturity benefits of the policy.

4. Traditional Child Endowment Plan

   It is a traditional insurance plan which offers safety and security. The plan allows policyholders to invest funds in debt instruments and receive a lump-sum amount when the policy matures. The bonus is offered at the time of maturity, which decides the return amount.

Features of Child Future Genius Education Plan

Some of the features of the plan are:

1. Life Insurance Coverage

   The child education plan helps to develop a corpus for future educational expenses of the child. It also offers an insurance payout in case of the proposer’s unexpected death.

2. Flexibility to Choose Premium Terms

   Interested individuals can choose different premium terms from 13 years to 21 years, based on availability and requirements.

3. Bonus Options

   The applicant can earn three types of b0nuses cash, premium offset, and paid-up addition. These bonus options help the applicant to earn money from the overall money fund in the plan.

4. Guaranteed Money-Back

   Many child future genius education plans have a guaranteed money-back feature. In this case, the applicant will get guaranteed money-back per year in the last four years of the plan.

5. Income Protection Facility

   The market-linked child education plan offers a return of around 20%. A ULIP-based child education plan offers applicants options to choose from various funds available such as money market, hybrid, equity, and debt. It helps individuals avoid the risks of inflation and save money in the long-term perspective.

6. Rider Benefits

   The child's future genius education plan offers additional rider benefits such as cover for accidental death, disability rider benefit, and critical illness benefit. In rider benefits, the applicants get additional coverage on the sum assured. However, they are required to pay an increased amount of premium.

Benefits of Child Future Genius Education Plan

Listed below are some of the major benefits of the plan:

1. Death Benefits

   In case of death of the insured individuals, the nominee will get the proceeds under the plan as a lump-sum benefit or monthly income. In case of the applicant’s untimely death during the policy tenure, the beneficiary can receive various other benefits as per the chosen plan. The death benefit is based on annualized premium, total premiums paid until death or any assured amount chosen in the policy term.

2. Maturity Benefits

   The beneficiary will get accrued paid-up sums on maturity. In case of the applicant’s death, the beneficiary will receive only the terminal bonus.

3. Partial Withdrawal Benefit

   The child's future educational insurance offers a partial withdrawal benefit that helps the beneficiary pursue hobbies or talents. They can invest this money in building a career other than the means of education. The partially withdrawn money can also be used for the medical and hospitalization expenses of the child.

4. Tax Benefits

   The child plans are tax exempted as per the Income Tax regulations of India. They fall under the E-E-E category of income tax exemption. The plans offer the highest tax exemption.

5. Waiver of Premium

   If the child’s parents pass away during the policy term, the child is not required to pay the premiums. The beneficiary will get the sum assured. The rest of the premiums will be paid by the insurer. At the policy’s maturity, the child is entitled to the lump sum amount assured in the policy terms.

Different Child Future Plans^†† in India

In India, different child future education plans are offered by leading insurers. The details of these plans are listed below:

Disclaimer: †† Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Documents Required

You must present these documents while buying the policy:

• Address Proof: The photocopies of voter ID, Aadhar card, Ration card, electric bills, and others

• Age Proof: The photocopies of birth certificate, 10th or 10+2-mark sheet or registration, passport

• Identity Proof: Photocopies of Aadhar card, voter ID, driving license, passport, etc.

• Income Proof: Photocopies of Aadhar card, PAN card, Salary slips, and others

• Proposal Form

How to Claim Child Future Genius Education Plan?

The policyholders can claim insurance support if they face any emergencies regarding the child through a cashless or reimbursement pr0cess.

• For cashless claims, the policyholders must inform the insurer about the emergency as-soon-as-possible through email or calls. The insurer will ask for policy numbers and necessary documents. Once they successfully verify the details and information provided through their service team, the insurer will process the claim within 30 days from the date of claim registered.

• In the case of the reimbursement process, the policyholders are required to visit the insurance office and provide all the necessary documents regarding the expenses incurred. On verification of the information provided, the insurer will notify the policyholders about the date to settle the claims. However, the insurers must settle claims within 30 days from document submission.

Child Savings Plan vs Sukanya Samriddhi Yojana Scheme and Public Provident Fund

How to Buy the Plan?

The applicants must visit the website of preferred insurers to read about their offerings and policy details. They can provide relevant information such as income, policy term, assured sum amount, and other information to calculate the premium amount through an online calculator available on the website.

To choose an appropriate insurance plan, buyers can also compare various available child insurance plans by claim-settlement ratio, premium amount, policy terms, and other details.

Once they choose the insurance plan, they can buy that insurance online through the insurer's website. They must provide the required annual income, family members, child's age, nominee details, policy terms, benefits chosen, and others. Once the process is complete, they can purchase the insurance through online payment through net banking, Debit, or Credit card.

Key Exclusions

The child insurance plans offered by various insurance providers do not provide coverage in some instances. These are known as exclusions. The critical exclusions are:

• Drug or alcohol abuse: In case of the insured individual meets with an accident or dies due to drug or alcohol abuse, the insurance providers will not cover the expenditure.

• Death due to self-harm or suicide: If the insured individual dies due to a suicide attempt or self-harm, the person will not be covered under the insurance purchased.

• Death due to adventure: Death that occurred due to adventure sports or risky attempts will be excluded from the benefits offered by the insurance provider.

• Injuries or death due to criminal activities: The person will be excluded from the insurance coverage if the death or injuries occurred due to illegal activities or war or weapons.

Investment

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In Conclusion

Buying a child insurance plan can be beneficial in the long run. Everyone wants their children to be protected. With the help of the plans mentioned above, you can secure your child’s future regarding their education and many other expenses.

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