BSLI Bachat Child Insurance Plan

The Bachat Child Plan from Birla Sun Life Insurance is a traditional non-participating child plan, which means that the returns are guaranteed and there is no Bonus declared in this plan. This is an endowment plan where the parent is the Life Insured but the plan is for the benefit of the child. This plan does not cover the life of a child and it is meant for the security of the child’s future even if anything happens to the parent. In this plan if the Life Insured, i.e. the parent dies within the policy tenure, the child would receive the Sum Assured to address the immediate needs of the family. The future premiums would also be paid by the company such that the Maturity Benefit is paid out as and when it is due.

• A parent or a grandparent till 50 years of age can apply for this plan
• A monthly premium from Rs 400 to Rs 3000 needs to be chosen and Sum Assured= 180 times the monthly premium chosen
• The policy provides Bachat addition declared each year depending upon the Premium Amount
• Loyalty additions are also paid depending upon the Premium Amount and Entry Age
• Double Accidental Benefit rider is also available as an additional feature

Death Benefit – In case of death of the Life Insured, i.e. the parent, the nominee gets the Sum Assured under the plan as immediate benefit. The future premiums are waived and the policy continues till maturity and the Maturity Benefit is paid out.

Maturity Benefit – All Monthly Base Premiums paid + All Bachat Additions earned + Loyalty Addition.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C

The below illustration is for a healthy Male (non-tobacco user) opting for a Monthly Premium = Rs. 500 and Bachat Addition Rate= 5%

Riders – There are 1 rider available in this policy:

·         Accidental Death Benefit rider

And 1 in-built rider in this policy:

·         Waiver of Premium rider

You stop paying the premium - If the policy holder stops paying the premium, then all benefits of the policy will stop after the grace period ends. The policy can however be revived within 2 years from the date of first unpaid premium.

You want to surrender the policy – Surrender Benefit is allowed under this plan but after 3 policy years. There are no charges after 10 policy years.
Surrender Benefit = (Total Monthly Premiums paid – 1^st year’s premium) x Surrender Factor (depending upon year of surrender) + Bachat Additions earned (After the 10th policy year) + Loyalty Addition (After the 15th policy year)

You want a loan against your policy – Loan facility is available under this policy after the 3rd policy year. The minimum loan amount is Rs. 5,000 and the maximum loan amount is 90% of the Surrender Benefit.

Get the Best Child Plan by comparing options from different insurance companies.