IDBI Federal Childsurance Dreambuilder Plan
IDBI Childsurance Dreambuilder Insurance Plan
IDBI Childsurance Dreambuilder Insurance Plan is a Unit Linked Insurance Plan (ULIP) which is purely for the benefit of your child. In this plan, the Parent’s life is insured so that the child’s future is secured. This is a ULIP without Bonus Facility.
In this plan, the premium can be paid for the entire premium paying term selected or for a limited period. The Fund Value would be paid on the policy maturity as Maturity Benefit and the policy would terminate.
However, if the parent, i.e. the Life Insured dies within the policy tenure, then the Sum Assured is paid as Immediate Death Benefit. Future premiums would be paid by the Insurance Company. Now, when the Life Insured dies within the policy tenure, the Systematic Allocator option gets automatically selected such that the fund is managed so as to provide growth along with security which is aligned to the maturity of the plan.
Now, when the Policy matures, the Fund Value is paid as Maturity Benefit but in instalments in the last five years instead of paying it as a lump sum. These instalments may be used to support child’s educational needs.
This plan has 6 fund options for investment purpose and Joint Life Coverage opportunity.
Key Features
Annual Premium= Rs 50,000
Sum Assured = Rs 10,00,000
Age of Life Insured = 30 years
Benefits
If the Life Insured dies within the policy tenure, Sum Assured is paid to the nominee as Immediate Death Benefit. Future premiums would be paid by the Insurance Company.
When the Policy Term ends, the Fund Value would be paid as Maturity Benefit but in instalments in the last five years instead of paying it as a lump sum.
|
Maturity Benefit paid |
Amount |
|
4 years before maturity |
20% of Fund Value on that date |
|
3 years before maturity |
30% of Fund Value on that date |
|
2 years before maturity |
40% of Fund Value on that date |
|
1 year before maturity |
50% of Fund Value on that date |
|
When the Policy Tenure ends |
Remaining Fund Value |
If the Life Insured survives till the end of the Policy Tenure, the Fund Value is given in a lumpsum and the Policy terminates.
Premiums paid under life insurance policy are exempted from tax under Section 80 C and the Survival and Maturity Benefits are exempted from tax under Section 10 (10D).
There are No additional riders with this plan:
Investment Fund Options
This plan has 2 Investment Strategy:
Self Management of Investment: There are 6 Investment Funds available
- Equity Growth Fund,
- Midcap Fund,
- Pure Fund
- Bond Fund,
- Income Fund, and
- Liquid Fund.
And Systematic Allocator- a facility which balances the asset allocation between equity and debt based funds to provide growth along with age based safety which is aligned to the maturity of the plan.
The minimum Top-up amount is Rs 5,000. Each Top-up Premium also has a Lock In Period of 5 years. Top-Up Premium will have a minimum Sum Assured of 1.25 times the Top-Up Premium paid if age of entry of the Life Insured is <45 years and 1.1 times the Top-Up Premium paid if age of entry of the Life Insured is >=45 years.
Unlimited switches are allowed in this plan for free.
Partial withdrawals are allowed only after completion of 5 policy years. Unlimited numbers of Four Partial Withdrawals are allowed in each policy year. The minimum balance in the Regular Premium Account after withdrawal should not fall below 2 years’ Annual Premium. Each Partial Withdrawal should be at least Rs 10,000.
Eligibility
|
|
Minimum |
Maximum |
|
Sum Assured (in Rs.) |
For age at entry< 45 yrs SA=Higher of (10 X AP) or (0.5 x Term x AP) For age >=45 yrs, SA= Higher of (7 X AP) or (0.25 x Term x AP) |
No Limit |
|
Policy Term (in years) |
10 |
25 |
|
Premium Payment Term (in years) |
5 |
Equal to Policy Term |
|
Entry Age of Life Insured (in years) |
18 |
65 |
|
Entry Age of Child (in years) |
1 month |
17 |
|
Maturity Age (in years) |
- |
75 |
|
Premium (in Rs.) |
25,000 p.a. |
1,00,000 p.a. |
|
Premium Payment Options |
|
|
FAQs
What happen if you stop paying the premium before 5 years ?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. It can also be revived.
What happen if you stop paying the premium after 5 years ?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.
What happen if you want to surrender the policy ?If the policy holder wants to surrender the policy before completing 5 years, then 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 policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.
What happen if you want a loan against your policy ?There is no loan available under this plan.
