BSLI Dream Child Plan
Dream Child Plan from Birla Sun Life Insurance is a unit linked non-participating child plan, where the parent is the primary life insured and the child is the secondary life insured till the Guaranteed Savings Date, when the child becomes the primary life insured. This is a Double Benefit plan, where both the Sum Assured and the Fund Value is paid on death of the primary life insured.
The Premium Amount and the Savings Date are chosen and the Basic Sum Assured and the Guaranteed Savings Amount is calculated automatically. Thus, on the chosen date the Guaranteed Savings Amount is paid and the policy continues for another 20 years till the end of the policy tenure. If the parent dies before the Guaranteed Savings Date, the Sum Assured is paid to take care of the immediate expenses and the future premiums are paid by the insurer and the policy continues. On Guaranteed Savings Date, the child becomes the primary life insured and the Fund Value is paid out on the policy maturity.
Compare this plan with other Investment Plans
BSLI Dream Child Plan - Key Features
This is a Joint Life Insurance Policy wherein the parent is the primary life insured and the child is the secondary life insured.
The life coverage can be increased by opting for Enhanced Sum Assured
There are Guaranteed Additions of 2.5% of the Basic Premiums paid in the last 60 months on 10th policy anniversary and on every 5
There is a Minimum Guaranteed Amount which is payable as maturity Fund Value called Guaranteed Savings Value
There are 4 additional riders available in this policy:
...
There is 1 Investment Fund that is available: Enhancer Fund
BSLI Dream Child Plan - Benefits
Before the Guaranteed Savings Date - When the primary life insured is the parent then; 1) If the Parent dies - then Basic S
The Fund Value is paid.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C.
Eligibility conditions and other restrictions in BSLI Dream Child Plan
| Minimum | Maximum | |
| Basic Sum Assured (in Rs.) | Higher of 10 or the number of years to maturity divided by 2, for entry ages below 45
The higher of 7 or the number of years to maturity divided by 4, for entry ages 45 |
|
| Policy Term | Guaranteed Savings Date + 20 years | |
| Premium Payment Term | Till Guaranteed Savings Date | |
| Entry Age of Parent/Grandparent | 18 years | 65 years |
| Entry Age of Child | 30 days | 17 years |
| Age at Maturity on Guaranteed Savings Date | - | 75 years |
| Single premium | NA | NA |
| Payment modes | Annual, Semi-Annual, Quarterly and Monthly | |
BSLI Dream Child Plan - FAQs
Not Allowed.
Not applicable as there is only 1 Fund that is available.
Unlimited partial withdrawals are allowed any time after completion of 5 Policy Years or the child is at least 18 years of age, whichever is later. The minimum amount of partial withdrawal is Rs. 5,000. There is no maximum limit, but a minimum Fund Value of Rs. 25,000 needs to be kept in the Fund Value.
If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.
The policy can be surrendered anytime after 5 policy years and the Fund Value will be paid out.
Prior to Guaranteed Savings Date, in situations where the primary life insured (grand /parent) is dead, the secondary life insured (child) can surrender the policy anytime after attaining age 18
There is loan available under this plan. The minimum loan amount is Rs. 5,000 and the maximum loan amount is 40% of the fund value.
