SBI Life is a leading life insurance company which is formed as a joint venture between State Bank of India and BNP Paribas Cardiff. While the State Bank of India is one of the largest public sector banks in India, BNP Paribas Cardiff is the insurance arm of the BNP Paribas Group which deals in life insurance and property and casualty insurance. SBI Life started its operations in the Financial Year 2001-02 and ever since then it has grown by leaps and bounds. The company offers a range of life insurance products which help in fulfilling every financial goal that you might have.
Here are some facts about SBI Life Insurance Company which establishes the company’s reputation in the life insurance market –
SBI Life offers different types of life insurance plans which include the following –
Among these plans, child insurance plans offered by the company help in protecting the financial future of your child. Let’s discuss the different types of SBI child plans which are offered by the company –
A child insurance plan is a life insurance plan which can be taken on the life of a child or the parent. The objective of a child insurance plan is to create a secured financial corpus for a child so that the future financial needs of the child can be easily met. Under child insurance plans, the parent is the policyholder. There is an inbuilt benefit under these plans wherein, if the policyholder dies during the policy tenure, the policy does not get affected. Future premiums are waived off and the insurance company pays the premiums in place of the parent. Thereafter, on the maturity of the policy, the promised maturity benefit is paid. This benefit, therefore, helps the child to meet his higher education costs or any other type of financial requirement which the child might have.
A child insurance plan proves to be a very good choice if you want to plan a secured financial future of your child. Here are some reasons why –
SBI Life Insurance Company offers two types of child life insurance plans. Let’s understand what these plans are, their features and benefits and their eligibility conditions.
SBI Life Smart Champ Insurance plan is a traditional money back policy which gives you smart money back benefits during the term of the policy. The features of the plan are as follows –
Eligibility conditions of SBI Life Smart Champ Insurance Plan
Entry age of the parent |
21 years to 50 years |
Entry age of the beneficiary child |
0 years to 13 years |
Sum assured |
Minimum – INR 1 lakh Maximum – INR 1 crore |
Policy tenure |
21 – child’s entry age |
Premium paying term |
Single premium – once Limited premium – 18 – child’s entry age |
Premium amount |
Limited premium payment: Minimum – 6000/year Maximum – depends on the sum assured, age and term Single premium payment: Minimum – INR 66,000 Maximum – depends on the sum assured, age and term |
SBI Life Smart Scholar Plan is a unit-linked SBI child plan. Under this SBI child plan, the premiums that you pay are invested in the market through various funds which you can select. Since the premium is invested in the market, it attracts good returns and you can maximize the savings which you set aside for your child’s future. The features and benefits of this SBI child plan are as follows –
Eligibility conditions of SBI Life Smart Scholar Plan
Entry age of the insured parent |
18 years to 57 years |
Entry age of the beneficiary child |
0 years to 17 years |
Term of the policy |
8 years to 25 years |
Premium payment term |
Single premium – once Limited premium – 5 years to 25 years |
Premium amount |
Single premium: Minimum – INR 75,000 Maximum – no limit Limited premium where premium paying term is 8 years and above: Minimum – INR 24,000/year Maximum – no limit Limited premium where premium paying term is 5 or 7 years: Minimum – INR 50,000/year Maximum – no limit |
Sum assured |
1.25 times to 20 times the premium amount depending on age |
SBI child plans should be bought by parents who have a minor child and who would like to create a secured corpus for their child’s future. If you have a low-risk appetite you can choose SBI Life Smart Champ Insurance which is a traditional plan giving you guaranteed benefits. If, on the other hand, you don’t mind taking risks and want wealth maximization for a maximum corpus, SBI Life Smart Scholar Plan is ideal as the plan would allow you market-linked returns as well as insurance cover. Both the plans have inbuilt rider benefits which make the scope of coverage extensive. So, choose the ideal policy and secure yourself for your child.
There are two options to apply for SBI child plans. They are as follows –
Offline application means applying for the policy physically by filling up and submitting a proposal form. You can apply offline through an agent of SBI Life Insurance Company. Alternatively, you can approach any nearest branch of the insurance company and apply for the chosen SBI child plan. Whether through an agent or through the company’s branch office, you would have to fill up the application form manually and submit it with the relevant documents. The company would receive the proposal for insurance, underwrite it and if everything is found sufficient, the policy would be issued.
You can also buy the plan online which is a better alternative to an offline application. The company offers different types of online policies. You can choose the most suitable plan and then apply for it online. To apply, you would have to fill up an online application form and submit it with the relevant documents. The company would, then, underwrite the policy and if everything is in order, the policy would be issued.
You can also buy SBI child plan through Turtlemint as Turtlemint has tied-up with SBI Life Insurance Company to sell its insurance plans. Just visithttps://www.turtlemint.com/life-insurance and choose ‘Savings for Child’. Fill in the necessary details about yourself so that the correct premium can be calculated. Enter in your date of birth, gender, smoking preference, annual income, the coverage that you would like, child’s age, investment horizon and the investment amount. Based on the details provided, you would be shown different child insurance plans. You can, therefore, compare and select the best plan for your needs.
Documents required for buying SBI child plan
To buy any SBI child plan, you would have to submit the following documents –
If the plan matures and you incur a maturity claim, fill up the claim discharge form and submit it to the insurance company along with your bank details. The company would, then, pay your claim directly to your bank account. In case of death claims, however, the insurance company should be informed of the death of the insured. The claim form should be filled and submitted along with a death certificate. The company might need other documents in some cases. Once the claim form and relevant documents are submitted, the claim would be paid to the nominee.
Yes, in case of limited premium plans, if the due premiums are not paid within time, SBI child plans offer a grace period for the payment of premiums. The grace period is 30 days for yearly, quarterly and half-yearly mode of premium payment and 15 days for monthly mode.
Free-look period is the period allowed to you so that you can cancel the policy after you have bought it and you are not satisfied with it. SBI child plans allow a free look period of 15 days wherein an issued policy can be cancelled if you are not satisfied.
Yes, policy loans are available under SBI Life Smart Champ Insurance plan which is a traditional policy. The loan would be allowed if the policy has acquired a surrender value. However, in SBI Life Smart Scholar Plan, the loan facility is not available. This is because the plan is a unit-linked plan which allows partial withdrawals and so loans are not permitted.