SBI Child Insurance Plan

Child plans help you secure the future of your children. They financially help your children at different milestones in their lives, like higher education, foreign education, and more. In this article, we’ll help you walk through the best SBI child plans in detail. 

SBI Life is one of the best insurance companies in India. The company was established in 2001 and has its headquarters in Mumbai. Similar to other life insurance products, SBI Child Plan also provides financial protection. Child plans by SBI Life will ensure that you accomplish all their goals, like higher education, marriage, and more, without worrying about funds. The company provides a wide range of products to cater to the unique needs of people. Read on to find out more about SBI Child Plans in detail! 

What is SBI Child Plan?

SBI Child Plan is a life insurance policy that financially protects the future of children. The insurance plan will create a corpus of wealth to accomplish financial objectives like child education, marriage, and much more. SBI Child Plans provide both maturity benefits at the end of the policy tenure and a death benefit in the event of the policyholder's demise.

Benefits of SBI Child Plans

Investment in SBI Child Plans is beneficial due to the following reasons: 

• Financial Aid: The SBI Child Plan will provide financial aid for your children in certain circumstances. For instance, inflation in the education sector may become a hurdle to your child’s future education. Consequently, if you have an SBI Child Plan, an insurance company will pay for your educational expenses. 
• Additional Income: Aside from savings, SBI Child Plans also provide additional benefits and other bonuses on the sum assured. Therefore, SBI Child Plans enable you to create wealth in the long run. 
• Rider Benefits: Policyholders can purchase riders by paying an additional premium to enhance the coverage of their plan. Some of the riders include the premium waiver rider, the accidental death benefit rider, and more. 
• Dual Benefits: SBI Child Plans provide both maturity benefits at the end of the policy tenure and death benefits in case of the demise of the life assured. Therefore, the investment in the SBI Child Plan is safe and secure. 

Best SBI Child Plans 2023

Here are some of the best SBI Child Plans to invest in 2023. 

SBI Life Smart Champ Insurance

It is an individual, non-linked, life insurance plan that will help your child fulfil all their ambitions. The plans begin providing coverage when the children reach the age of 18. The key benefits of the plan are as follows: 

1. Get assured smart benefits in four instalments to ensure that the higher educational needs of your children are met. 
2. A lump sum payment is made to the policyholder at the end of the policy tenure. 
3. During the policy's term, you'll get life insurance and accidental total and permanent disability coverage. 
4. A premium waiver and immediate payment of the sum assured option in case of any adversity or unfortunate incident. 

SBI Life- Smart Scholar

It is an individual, unit-linked, and non-participating life insurance product. Since the returns of the SBI Smart Scholar Child Plan are market-linked, policyholders can create wealth for their children. Additionally, you can partially withdraw your funds after the lock-in period of 5 years. The key features of the plan are as follows: 

1. Choose between nine fund options as per your risk appetite. 
2. Withdraw your funds partially starting in the sixth year of the policy. 
3. Get a lump sum at the time of maturity. 
4. Increase your returns through loyalty additions. 

Factors To Consider When Purchasing a Child Plan

The following are the factors that you should keep in mind while investing in a child plan. 

• Claim Settlement Ratio: The claim settlement ratio indicates the trustworthiness of an insurance company. SBI Life is considered one of the most reliable insurance providers with a claim settlement ratio of 94.0%. Thus, investment in SBI Child Plan will be a wise decision for parents who want to plan the future for their children. 
• Add-on Benefits: Another factor to consider when purchasing a child plan is additional riders. Riders are the add-on benefits that can be purchased by paying an additional premium to an insurance company. Always check the riders offered by an insurance company to ensure comprehensive protection for your children. 
• Coverage Amount: Depending on your child’s financial goals, it is important to buy a child plan with an appropriate coverage amount. Therefore, always analyse your financial goals and choose the plan that best suits your needs. 
• Policy Tenure: Policy tenure is an important factor that you must consider when purchasing a child plan. The age factor plays a significant role in choosing the appropriate policy tenure. 

Conclusion 

In conclusion, the SBI Child Plan is a life insurance product that will help you secure the future of your children. The policyholders can choose between two child plans— SBI Life Smart Champ and SBI Life Smart Scholar insurance. However, before purchasing any of these plans, make sure that you analyze your financial goals carefully.

Also Read: 

What is a 5-year Child Education Plan?