The Bright Child Plan from Star Union Dai-Ichi (SUD) Life is a traditional, savings cum protection, life insurance policy. Under this plan, the policyholder is provided a risk cover for the entire sum assured. If the policyholder passes away during the policy tenure, future premiums will be waived off and the resulting death benefit will be paid to the nominee. In addition, guaranteed child benefits will be paid to the nominee, based on the plan option selected while purchasing the policy. The policy comes with two plan options – the Wedding Endowment option and the Career Endowment option.
The premium payable for this policy will vary based on the sum assured, the premium payment term, plan option, etc. Apart from the many policy benefits that one is entitled to, members can also choose to enhance their coverage by purchasing additional riders, such as the SUD Life Accidental Death and Total & Permanent Disability Benefit Rider - Traditional and the SUD Life Family Income Benefit Rider - Traditional. Tax benefits, as per Section 80C and 10(10D), can be claimed on the premiums paid towards the policy.
Insurers have pre-defined criteria regarding the age of prospective policy buyers, which need to be met in order to purchase the policy.
|Parameters||Criteria for eligibility|
|Minimum age at entry||
|Maximum age at entry||
|Maximum age at maturity||
|Minimum age difference between the Child and the Life Assured||19 Years|
|Plan options to choose from||
*Ages mentioned above are as on the life assured/child’s last birthday.
The Sum Assured is a definite amount of money that you will receive from the insurer. You are covered for the Sum Assured amount. Prospective policy buyers will have to choose the sum assured while purchasing the insurance policy. However, you will have to keep in mind that your premiums are linked to your sum assured. The minimum and maximum sum assured for this policy are listed below.
|Minimum Sum Assured||Rs.5 lakh|
|Maximum Sum Assured||Rs.5 crore|
The premium is a fixed amount of money that you will have to pay as a fee to the insurer, in order to enjoy continued insurance coverage and policy benefits. You will have to ensure that you pay your premiums in a timely manner, before the completion of the grace period. Certain particulars related to your policy term and premium payments are mentioned in the table below:
|Minimum term of the policy||16 Years (provided the child’s age at entry was 8 years)|
|Maximum term of the policy||24 Years (provided the child’s age at entry was 1 day/0 years)|
|Premium Payment Mode||
|Premium Payment Term||
*Premiums vary based on age, location, plan term, GST, and other factors
|Child Benefits||Child benefits will be paid, irrespective of whether the life assured member is alive or not, based on what plan option is chosen.
|Benefit Booster||The Benefit Booster will be paid at the end of the policy tenure, based on the child’s age at entry and the plan option chosen.
|Death Benefit||If the life assured meets with an untimely death during the policy tenure, the insurer will pay a death benefit, which will be the highest of:
Policyholders can purchase the riders listed below to enhance the protection accorded by this plan.
If you opt for this rider, you will be paid an additional benefit if you meet with an accident during the policy term. Up to 100% of the rider sum assured will be paid in case the policyholder meets with an accidental death. If the life assured member suffers from permanent disability due to the accident, he/she will be eligible to receive 10 half-yearly instalments, where each instalment will equal the Rider Sum Assured times 10%. The minimum and maximum annualised premium for this rider are Rs.8 and Rs.71,300, respectively.
Purchasing this rider along with the base policy guarantees a fixed monthly income to the life assured’s family for a period of 10 years, after the death of the policyholder. The yearly benefit paid to the policyholder’s family will be equal to 10% of the rider sum assured. The rider sum assured cannot be lesser than Rs.1 lakh and cannot exceed Rs.50. lakh.
The Bright Child Plan from SUD Life comes with a suicide clause. If the policyholder commits suicide within 12 months of purchasing the policy or 12 months of reviving/reinstating the policy, no benefit will be paid by the insurer. In this case, the insurer is only liable to pay 80% of the overall premiums paid during the policy tenure, to the nominee.
|Free-Look Period||The policy can be returned to the insurer within the free-look period, i.e., 15 days. For policies purchased through distance marketing modes, the free-look period can be extended to 30 days.|
|Policy Loan||There is no facility to take a loan against this policy.|
|Grace Period||You can pay your premium within the 30-day grace period to keep your policy from lapsing. For monthly mode of premium payment, the grace period is reduced to 15 days.|
|Policy Lapse||If a minimum of 3 full years’ premiums have not been paid within the completion of the grace period, your insurance policy will lapse.|
|Reduced Paid-Up Benefits||If a minimum of 3 years’ premiums have been paid and the subsequent premium is missed by the policyholder, the plan will be converted into a reduced paid-up plan. The Child Benefits and Death Benefits will also be paid as a percentage of the paid-up policy sum assured, and not the basic sum assured.|
|Surrender Benefit||The policy will have a surrender value if at least a minimum of 3 consecutive years’ premiums have been paid. The surrender benefit payable will be the highest of:
|Policy Revival||A policy can be revived or reinstated within 2 years of the first unpaid premium. To revive the policy, you will have to send a revival request to the insurer and pay all due premiums with an interest of 9% p.a.|
|Death of Child||If the child dies during the policy term, the life assured can nominate his/her second child as the nominee. If there are no more children, the life assured’s legal heir will receive the policy benefits.|
|Policy Termination||Policy termination can happen only if the life assured surrenders the policy or if the policy has attained maturity and all due benefits are paid.|
|High Sum Assured Rebate||For Sum Assured over Rs.6 lakh, the policyholder is entitled to receive a rebate on premium rates.|
|Assignment||Assignment is not permitted under this policy.|
|Nomination||Nomination, as per Section 38 of the Insurance Act, 1938, is permitted under this policy.|
Tax benefits, as per the prevailing laws of Section 80C and Section 10(10D) of the Income Tax Act, 1961 are applicable. Tax laws are subject to change from time to time, without prior intimation. Hence, ensure you consult with a tax advisor.
Rising costs of living and inflation are a cause of concern for everyone, especially when one’s child’s future is at stake. The Bright Child Plan from SUD Life is a smart way to secure your child’s future, regardless of what may happen tomorrow. The policy comes with two plan options, an assured child benefit, a death benefit, and a booster benefit, making it a smart choice. In addition, the policy can be enhanced by purchasing additional riders.
Star Union Dai-Ichi Life is a joint venture between Union Bank of India, Bank of India, and Japan-based Dai-Ichi Life. The nationwide network of branches guarantees the insurer a pan-India presence, even in rural parts of the country. The insurer has received several prestigious awards over the years, including the ‘Company with Highest Claims Settlement’ award in February 2015, ‘Best Life Insurance Company in Private Sector’ award in 2015, etc. The company has also reported a quick turnaround time for claims settlement.
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