SBI Child Plans: Definition, Types & Benefits

The SBI life insurance company offers an array of insurance products and services ensuring high standard customer satisfaction. This includes both unit-linked plans and traditional plans as well. SBI child plans primarily will help you save and create a corpus and help in shaping the future of the child. Parenthood is another beautiful aspect that one encounters in their life. And this journey is never an easy one, it is full of responsibilities and you are always there to nurture your child in the best possible manner.

What is an SBI Child Plan?

Bringing up a child is not an easy task, specifically in today's times; good financial planning is of utmost importance. The right financial planning will help the child at every stage of life. SBI life child plans thoroughly understand the prudence of creating an enormous corpus to fulfil the necessities at any point in time, for instance, a child’s education, marriage plans, any sort of emergencies and much more.

Make the smart move and buy the SBI child plan and secure the financial future of your child. The SBI Insurance plans for your child will take care of all the financial requirements securely.

Why SBI Life Child Plans?

The SBI child plan is only a blessing strategy that encourages you to meet the costs identified with your child’s training and prosperity. A child plan can be changed over into a money-back plan and bits of the total guaranteed can be gotten at various achievements of the child's life.

The SBI life child plan encourages you to arrange your funds carefully so that at no point in life are you monetarily over-troubled. You can spare over some time, in modest quantities and still develop a store sufficiently huge to confront each testing circumstance effortlessly. So begin sparing early and you will have more opportunity to make the ideal fund.

What are the Types of SBI Life Child Plans?

SBI Life Insurance Company currently offers two types of Child Insurance plans.

1. Traditional plan while
2. Unit Linked Insurance Plan.

Top SBI Child Plans in 2023 For a Secure Future

Let us take a look at each of these SBI child plans with a detailed understanding of the plan features and benefits.

SBI Life- Smart Scholar

Nothing could be better than seeing the apple of your eyes growing with confidence. The Smart Scholar plan lets you avail double the benefits of the market-linked returns upon the money invested and provides a life cover security for your child.

What are the Features Offered Under SBI Life- Smart Scholar?

• You have the option to choose between nine funds.
• The partial withdrawal could be easily done right from the sixth year of the policy.
• On the premise of the policy term, constant loyalty additions for the in-force policy when it is completed on the specified duration.
• In case of any eventuality, the premium waiver benefit option.
• At maturity, the lump sum amount.

What are the Benefits Offered Under SBI Life-Smart Scholar?

• Death Benefit:
  • Under circumstances, the life assured is no more while the policy is still active during the policy period than a lump sum benefit equivalent to higher of the basic sum assured or 105 per cent of the complete premiums received up to the demise date will be payable.
  • In case the child passes away then no sum assured will be payable. The SBI life insurance company should be informed regarding the same. Either the SBI child plan will be terminated or the plan might continue. If the contract terminates then with no surrender charge the fund value will be payable.
  • In case both the life assured and the child pass away while the plan is active then it will likewise terminate and the due benefits along with the fund value will be paid.
• Maturity Benefit:
  • When the policy term is completed, the lump sum will be paid in the form of paid-up value either to the policyholder if survives or to the child when the life assured passes away during the policy period.
• Tax Benefit:
  • Under Section 10 (10D) of the Income Tax Act, income tax exemptions are accessible at the time of surrender or maturity wherein the premium should not exceed 10 per cent of the sum assured in any year during the policy period.
  • Income tax deduction/ benefit upon the paid premium is accessible within Section 80C of the act, if the premium paid for the financial year exceeds 10 per cent of the sum assured, then 10 per cent of the sum assured will be limited up to the benefit. It is to be noted that income tax laws are subject to change from time to time.

SBI Life- Smart Champ Insurance

Is there more pleasure in turning the dreams of your little one, your champ into reality? We all understand the importance of education in today's times. This SBI child plan will ensure the security and prosperity of the bright future of your child whether you are around or not.

What are the Features Offered Under SBI Life- Smart Champ Insurance?

This SBI life insurance - child plan is an individual and non-linked participating insurance product, which is designed to secure the educational needs of the child in the prospective times. Listed below are the key features of SBI Life- Smart Champ Insurance:

• Once the child reaches 18 years of age, avail the smart benefits into four equivalent yearly instalments.
• In case of any adversity or misfortunate incident, it offers a premium waiver and instant payment of the sum assured.
• Throughout the policy period, cover for life and accidental total permanent disability will be provided.
• An alternative to paying the limited premium or one-time single premium.
• During the end of three years of the policy, an option to obtain the discounted value of the instalment that is future due to the smart benefits including the terminal bonus.

What are the Benefits Offered Under SBI Life-Smart Champ Insurance?

The following are the benefits offered by Smart Champ Insurance. In case you pass away or ATPD during the policy period, the listed below benefits will be payable.

For Limited Premium: Sum assured upon the event insured that is high of the basic sum assured or ten times the annualized premium.
For Single Premium: The sum assured upon the event insured is higher than the basic sum assured or 1.25 times the SP. A lump-sum amount, which is equivalent to higher of the sum assured upon the insured event or 105 per cent of the complete premiums that have been received until the demise or ATPD, that can be paid instantly whichever is early.

• Triple Protection: This SBI child plan provides triple protection, which is in an immediate payment form, smart benefits and waiver of premiums, in case any adversity takes place.
• Survival Benefit: It provides smart benefits, which are the survival benefits that are received by the policyholder towards the end of the policy term. For this, the child at the end of the policy should either complete either 18, 19, 20 or 21 years of age.
• Tax Benefits: You can avail the tax benefits as per the existing laws regarding the income tax in India. Moreover, it is to be noted that these tax laws are subject to change from time to time.

Conclusion

Both the SBI child plans offer rider benefits that make the plan more secure and enhanced. There is no right time to buy any of the SBI child plans. The earlier, the better. Choose the SBI child plan online and secure the financial future of the child. 

As indicated by specialists, the expenses of education will keep on taking off, much the same as they have in the past. So as should be obvious, the future training expenses of the child can't be anticipated thus as a parent you have to have each conceivable arrangement. Subsequently, an SBI child plan ought to be purchased as ahead of schedule as conceivable to set up a sound store that would get the job done with all the requests of your child's career of education.

Also read:

Which Are The Best Mutual Funds For Monthly Income

Which Are The Best Single Premium Insurance Policies Available In India?