Innovative child plan with five unique features for parents to safeguard their child’s future

Heralding the New Year, private sector insurer IDBI Federal Life Insurance today announced the launch of its premier Child Plan, IDBI Federal Childsurance® Dreambuilder Insurance Plan, ideal for parents of children aged one month to 17 years.

Childsurance® is a Unit Linked Insurance Plan with innovative features that ensure a perfect combination of optimum returns and safety. The plan includes features such as Joint Life Cover, Lumpsum Payment of Future Premiums (on death), Guaranteed Loyalty Additions, Education Support Benefit, and Systematic Allocator option that help create a child plan that does not fail.

Announcing the launch of ‘Childsurance Dreambuilder Insurance Plan’, Mr. G V Nageswara Rao, Managing Director and CEO of IDBI Federal Life Insurance, said: “Children are the foundation of our future and therefore planning for them, needs to be done carefully and successfully. We at IDBI Federal Life Insurance have created yet another innovative product with Childsurance Dreambuilder Insurance Plan which manages the twin expectations of growth to counter rising education costs and financial protection to ensure the plan doesn’t get derailed. The plan has five unique features for parents to ensure their child’s future and education would remain unaffected under any circumstances or exigencies.”

Five Unique Features:

1. Systematic Allocator: Systematically transfers fund value from the Equity Growth Fund to the Income Fund over the policy term to protect the corpus from equity market volatility closer to maturity

2. Joint Life Cover: Since both parents are contributors to the household income, on death of any one parent, future premiums are waived. Sum insured being paid if both parents were to die

3. Lumpsum Payment of Future Premiums: In case of death of the parent, all future premiums are waived and invested in the plan as a lumpsum in the plan

4. Guaranteed Loyalty Additions: At the end of the 10th policy year and every five years thereafter to boost the child plan corpus

5. Education Support benefit: In case of death of the policy holder, this feature will ensure systematic withdrawals in the last 5 years of the plan to support child’s education

The plan provides a wide range of fund options for investment with an option of a unique ‘Systematic Allocator’ that systematically allocates funds from an Equity Growth Fund to the Income Fund over the policy term to protect the corpus as it nears maturity. While Childsurance builds the corpus over a period of time, it also allows liquidity with partial withdrawals and surrender options in case of need for funds.

Emphasizing on the objective of a Child plan, Mr. Aneesh Khanna – Senior Vice President, Head - Marketing and Product Management of IDBI Federal Life Insurance said, “Planning for a child’s future is a challenging yet an essential task for every parent. Whatever their child decides, they will certainly need good quality education to succeed in their chosen line of work. Our Systematic Allocator and Lumpsum Payment of Future Premiums are features that combine the benefits of growth and protection for the customer.”

The policy term can be conveniently chosen to coincide with the age when the child will require the corpus for his education, marriage or any other career goals, any policy term between 10 and 25 years is available. The plan starts with a minimum annual premium of Rs 25,000 and maximum Rs 100,000. Additional top ups of minimum Rs 5,000 can be made at any time to help accumulate the child’s education corpus faster.

The plan comes with dual tax benefits - premiums paid are eligible for deduction from taxable income under section 80C and the maturity amount is exempt from tax under section 10(10D). Thus the benefits are fully available to meet the financial needs of the child or to take care of expenses as in the case of crisis.
About IDBI Federal Life Insurance
IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each. At IDBI Federal, we endeavor to deliver products that provide value and convenience to the customer. Through a continuous process of innovation in product and service delivery we intend to deliver world-class wealth management, protection and retirement solutions to Indian customers. Having started in March 2008, in just five months of inception we became one of the fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on November 30th, 2011, the company has issued over 3.35 lakh policies with over Rs 18783 Cr in Sum Assured.

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