Child Plan

You've been watching your child grow, hitting milestone after milestone, and with each passing day, you're reminded of the dreams and aspirations you hold for their future. But today, just attempting to fuel those dreams into reality ends up requiring more than just emotional support and encouragement. It demands prudent financial planning, especially with education costs rising faster than ever and career paths becoming increasingly diverse and demanding. If not already, you should consider getting a decent child insurance plan right about now if you are planning to have kids or have just become a parent. The right plan can make sure your child's dreams stay protected in these inflated economic conditions.

  • Get life cover for your family to secure their future
  • Plans offering Life cover protection up to 80 years of Age
  • Tax benefit under Section 80C

Know more about our Term Plans

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What is a Child Plan?

A child plan is a financial product for securing your child's future, combining the attributes of savings with comprehensive life insurance coverage. This approach involves setting aside a portion of your income regularly, ensuring your child's dreams remain unshaken even if you're not around to guide them. Insurance companies then invest these savings in carefully selected portfolios, designed to grow steadily over time.

What distinguishes a child plan is its child-first approach. Should anything unexpected happen during the plan's tenure, your beneficiary receives the assured amount, and more importantly, most policies continue to be in force if the premium waiver benefit is available with the plan. This ensures your child's education and future plans stay on track, regardless.

Upon maturity, child plans also provide returns that may help tackle the challenge of rising education and any costs that may arise in the future. This reliability makes them particularly appealing if you're looking to secure your child's future without taking undue risks.

    How does a Term Insurance plan work?

    1

    Choose your coverage tenure

    First, you choose how long you want to be covered. This is called the policy term. Then, you decide how much money your family would need if you're not around. This is the sum assured.
    2

    Pay premium to choose a plan and duration

    Next, you start paying premiums. These are the small amounts you pay regularly - which could be paid monthly, quarterly, or yearly depending on the life insurance company you opt for. The insurance company calculates this based on things like your age, health, profession, lifestyle and even your location (geography) in some cases. The premium calculation will depend upon the premium payment term, policy term and sum assured chosen by you.
    3

    Nominee gets the "sum assured" on demise of the insured

    If something happens to you during the policy term, your family gets the sum assured. This money can help them maintain their lifestyle, pay for kids' education, or clear any loans.

    Why Consider a Child Plan?

    Well, think about it. As time goes on, the cost of living keeps going up. What seems like a decent amount of money today might not stretch as far in 10 or 20 years. That's inflation silently and gradually eating away your savings.

    And our expenses aren't going to get any smaller. From rising education costs to healthcare expenses, your family's financial needs are only going to grow.

    That's where a term insurance plan comes in handy.

    Here's the thing - many people put off buying term insurance. They think they're too young, too healthy, or that it's too expensive. But that's like saying you don't need to save for a rainy day because the sun is shining now.

    In India, where we're still catching up on financial literacy, most families (read middle-class families) that account for the majority of the country’s population struggle when the primary breadwinner passes away unexpectedly.

    It's a harsh reality, but according to reports from 2022, the life insurance penetration in India is just 4%. That's a lot of families left vulnerable to financial shocks.

    Why Do You Need a Term Insurance Plan?

    You're sitting at home, scrolling through your phone, when suddenly an ad pops up about term insurance. Your first instinct? Probably to keep scrolling. Who wants to think about term insurance when you could be planning your next family vacation or dreaming about that new apartment? The right term insurance plan isn't just another financial product lurking in those shady ads. It's a critical tool that could make all the difference in your loved ones' lives if the unexpected happens. Sounds dramatic? Maybe. But let's break it down and see why term insurance might just be the most important financial decision you'll ever make.

      Who needs a Term insurance policy?

      • Parents
      • First Jobbers
      • Newly-Weds
      • Women
      • Tax Payers (The 1.6% population)
      • Retired Individuals
      • NRIs

      Parents

      If you're a mom or dad in India, you know it's not just about putting food on the table, right? From the moment you know you're going to be a parent, the wheels start turning. "Which school should we aim for? How much will college cost 15 years from now? What if they want to study abroad?" The list goes on and on. Say, you've been saving up for your daughter's engineering degree. Or maybe your son's dream of becoming a doctor. But life has other plans. What if something happened to you before those dreams could take flight? See, it's not just about their education. It's about maintaining the life you've built for them today and for tomorrow. The home they've grown up in, the yearly trips to their grandparents, even those small indulgences like pizza nights or new clothes for Diwali – a term insurance plan helps keep all of that intact. So, if you're a parent, think of term insurance as part of your parenting toolkit. Because at the end of the day, isn't our kids’ well-being what we all want? To know that our kids will be okay, no matter what.

        How does Term Insurance work?

        Term insurance has a set duration, unlike some other insurance types. You choose the coverage period - perhaps until retirement or until your children are financially independent. It's designed purely for protection, usually without any investment component. This focus on protection typically makes term insurance more affordable than other life insurance options, offering substantial coverage at lower premiums.

        Evaluate Needs

        Before selecting a policy, it's important to assess your family's financial requirements. Consider how much funds your family would need to maintain their lifestyle without your income. Think about any large debts that need to be covered, such as a home or personal loans. Determine how many years of an income runway you want to provide to your dependents in your absence. Also, factor in any significant future expenses you want to secure, such as your children's education, future, etc.

        • 01. Evaluate Needs

        • 02. Proposal Form

        • 03. Calculate the premiums

        • 04. Select your plan and make payments

        • 05. Designate a Nominee

        Term Insurance Benefits in India

        Let's dive into why it's such a good idea and break down the term insurance benefits you can expect. Click to expand and lean more

        Low Cost High Coverage

        Critical Illness Protection

        Long Term Policy

        Disability Coverage

        Financial Security

        Customization Through Riders

        Tax Advantage

        Key Features of Term insurance plan

        Let's explore the main characteristics that make term insurance plans stand out

        Accessible from a Young age

        You don't have to wait long to start securing your financial future. Most term insurance plans become available as soon as you turn 18, at considerably lower premiums due to the lower risks.

        Extensive Coverage Period

        Term life insurance isn't just for a few years - it can potentially cover your entire lifetime. This long-term protection ensures your family's financial security for decades to come.

        Coverage Amount

        Your financial needs may change over time, and term insurance plans understand that. Some policies often also allow you to adjust your sum assured, increasing or decreasing it to align with your current financial situation.

        Premium Payment Modes

        Term insurance plans offer various ways to pay your premiums at your convenience. You can choose what works best for your budget - be it annual, half-yearly, quarterly, or even monthly payments.

        Simple Buying Process

        Buying term life insurance is remarkably simple. You can compare policies online, select the one that fits your needs, and even customize it with additional features. The entire process, from document submission to premium payment, can be completed digitally.

        Offset Loans and Debts

        A term insurance payout can be a crucial financial tool for your beneficiaries. It can help them manage and settle any outstanding debts or loans that you may have taken under your name so that they're not burdened with financial liabilities in your absence.

        Tax Advantages

        All term insurance plans come with tax benefits under Section 80C of the Income Tax Act, 1961. This feature allows you to reduce your tax liability while securing your family's future.

        Return of Premiums Option

        While term insurance typically doesn't offer maturity benefits, some plans provide an option to return the premiums if you survive the policy term. However, this returned amount usually doesn't include any interest and the premiums you pay for such a plan may be slightly more expensive.

        Extended Term

        Term insurance plans often come with a longer tenure, sometimes even up to 99 years. This extended coverage period allows you to maintain a higher level of protection for a longer time.

        Critical Illness Coverage

        Some term insurance plans go beyond death benefits and offer protection against a predetermined list of life-threatening diseases. This additional coverage can take care of conditions like cancer, stroke, heart attack, and kidney failure and provides an extra layer of financial security for your family in case of severe health issues. Know that the list of ailments included in one insurer’s list may differ from the other.

        Steps to Buy

        Steps to buy a Term Insurance plan online

        Buying a term insurance plan online isn't more complicated than deciding what to binge-watch on a Saturday. The process is simple, and quick, and can be done from the comfort of your pajamas once you know everything you need to know. Here's how to go about it –

        • Assess Needs

          01.

        • Research and Choose a Plan

          02.

        • Submit the required documents

          03.

        Assess Needs

        Before diving into the sea of term insurance plans, take a moment to pinpoint your current situation on the map. What are your protection needs? Are you safeguarding your family's future, covering outstanding debts, or ensuring your children's education continues uninterrupted? Determining what you're protecting against and how much coverage you'll need is the first step to picking the right plan. Think about the timeline—how long do you need the coverage for? Your protection needs will dictate the type of term insurance plan that's ideal for you, whether it's a plan that offers a high sum assured, additional riders, or both.

        SUD Life Term Insurance Products

        These 3 term insurance plans offered by SUD Life help protect your family's financial future. Here's a quick look at each

        All three plans offer
        • Lump sum payment to your family if something happens to you
        • No payout if you survive the policy term
        • Potential tax benefits (check with a tax advisor)

        Remember, these are just summaries. Always read the full policy documents or speak with an insurance advisor to understand all the details before making a decision. Each plan has its own unique features that might suit different needs and preferences.

        How to Buy

        How to Buy a Term Insurance plan online with SUD life?

        Purchasing a term insurance plan from SUD Life online is a hassle-free process. Let's walk through the steps together

        Choose Your Channel

        (a) Visit the SUD Life website and click on 'Buy Online' or 'Connect with Advisor' for your chosen term plan. (b) If you prefer face-to-face interaction, you can always visit a Star Union Dai-ichi Life Insurance branch.

        Request a CallbackBuy Now

        Documents Required to Purchase a SUD Life Term Insurance Plan

        When you're ready to secure your family's future with a SUD Life term insurance plan, you'll need to provide certain documents. This ensures a smooth application process and helps us tailor the plan to your specific needs. Here's what you'll need:
        01. Application Form

        A completed policy application form is essential

        This document provides SUD Life with crucial information about your financial situation and medical history

        Your answers help determine your premium and sum assured

        Be thorough and honest when filling out this form to ensure the most suitable coverage

        02. Income Proof

        Recent bank statements (typically for the last 3-6 months)

        Income Tax Returns (ITR) for the previous 1-3 years

        Salary slips for the last 3 months (for salaried individuals)

        Form 16 (if applicable)

        Profit and Loss statements (for self-employed individuals)

        03. Identity and Address Proof (KYC Documents)
        For Identity Proof (any one)

        Aadhaar Card, PAN Card, Passport, Voter ID Card, Driving License

        For Address Proof (any one)

        Aadhaar Card, Passport, Utility bills (electricity, water, or landline phone bill) not older than 3 months, Property tax receipt, Bank account or Post Office savings bank account statement

        Age Proof

        Birth certificate, 10th or 12th class certificate, PAN card, Passport

        Photograph

        A recent passport-sized photograph

        Medical Reports (if applicable)

        Depending on your age, sum assured, and answers in the application form, you may need to undergo a medical examination. If required, SUD Life will arrange for these tests at our partner diagnostic centers

        Nominee Details

        Provide the name, contact information, and relationship of your chosen nominee(s). If the nominee is a minor, details of an appointee will also be required

        NEFT Mandate Form

        This form allows for direct credit of payouts to your bank account. You'll need to provide your bank account details and attach a cancelled cheque

        Proposal Form

        This is a detailed form that includes all the information about the policy you're purchasing. Review this carefully before signing

        Additional Tips

        Ensure all documents are self-attested.

        Provide clear, legible copies of all documents.

        If any document is in a language other than English or Hindi, provide a notarized translation.

        Keep copies of all submitted documents for your records.

        Having these documents ready beforehand can significantly speed up your application process. If you have any questions about the required documents or need assistance with your application, our SUD Life advisors are always here to help.

        The Ultimate Guide to Term insurance plan in India

        Let's break it down and make it simple, shall we? We’ll skip what is life insurance since you may already know if you have reached this section somehow.
        • 1. How much cover do you really need?
        • 2. The Best Time to Buy? Yesterday!
        • 3. Online vs offline?
        • 4. Riders
        • 5. Taxes
        • 6. Medical Stats
        • 7. Claim Settlement Ratio
        • 8. The Final Print that matters
        • 9. The most important step

        1. How much cover do you really need?

        Now, this is where it gets personal. Your cover should be the one you think is apt. Here's a simple way to figure it out:
        1. Take your annual income and calculate how long you want your income to sustain your family in your absence. .
        2. Add any loans you have (home loan, car loan, you name it).
        3. Throw in future expenses like your kids' education or your daughter's wedding. Let's do the math: ● Say you earn ₹10 lakhs a year and want 10 years of runway in your absence for your family ● You've got a home loan of ₹50 lakhs ● You're planning to spend about ₹20 lakhs on your kid's education 10 lakhs x 10 = 1 crore Add 50 lakhs (loan) + 20 lakhs (education) Total: 1.7 crores That's your ballpark figure. Sounds like a lot? Remember, term insurance is surprisingly affordable.

        Inclusions & Exclusions of Term life insurance

        When you're considering a SUD Life term insurance plan, it's important to understand what's included. Let's take a closer look at the key features you can expect:
        Death Benefit
        The main feature of a term insurance plan is the death benefit. If you pass away during the policy term, your family receives a lump sum amount called the sum assured.
        Flexible Coverage
        Insurance companies know that everyone's needs are different. That's why they offer flexibility in choosing your sum assured (the amount of coverage) and policy term (how long you want to be covered).
        Premium Payment Options
        You can often choose how to pay for your policy. Options may include paying once a year, twice a year, or monthly. Some plans even let you pay for just a few years while staying covered for longer.
        Additional Riders
        Many term insurance plans allow you to add extra protection. These add-ons, called riders, can include things like coverage for critical illnesses, extra payout for accidental death, or benefits if you become disabled.
        Tax Benefits
        The premiums you pay for your term insurance plan may help you save on taxes. However, tax laws can be complex, so it's best to check with a tax expert to understand how this applies to your situation.
        Wide Age Range
        Term insurance is usually available to adults of various ages. Whether you're just starting your career or nearing retirement, there's likely a plan that fits your age group.
        High Coverage at Affordable Rates
        Term insurance typically offers a large coverage amount for relatively low premiums, especially if you're young and healthy when you buy the policy.
        Renewal and Conversion Options
        Some plans offer the option to renew your policy after the term ends or convert it to a different type of life insurance policy.
        Online purchase
        Many insurance companies now offer the option to buy term insurance online, making the process quicker and more convenient.
        No maturity Benefit
        It's important to know that term insurance doesn't pay anything if you outlive the policy term. Its primary purpose is to provide financial protection to your family in case something happens to you.
        Remember, these inclusions and exclusions can vary between different SUD Life term insurance plans. It's always a good idea to read the policy document carefully and ask questions if anything isn't clear. After all, this is an important financial decision, and you want to be sure you're choosing the plan that best fits your needs and circumstances.
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        Suicide
        Most term insurance plans with SUD Life won't pay the full death benefit if the insured person dies by suicide within the first year or two of the policy. Instead, they might return a portion of the premiums paid or nothing at all.
        Incorrect Information
        If you provide false information on your application, the insurance company may refuse to pay the claim. It's crucial to be honest about your health, lifestyle, and other details when applying.
        Dangerous Activities
        Death due to participation in hazardous activities like skydiving or racing might not be covered unless you've informed the insurer and paid an extra premium.
        War and Civil Unrest
        Most policies don't cover death resulting from war or civil unrest.
        Alcohol or Drug Abuse
        Death related to excessive alcohol consumption or drug abuse is often excluded from coverage.
        Pre-existing Conditions
        Some policies may not cover death due to illnesses you had before buying the policy, especially if you didn't disclose them.
        Waiting Period
        There might be a short period (usually 30-90 days) at the start of the policy where death due to illness isn't covered. However, accidental death is typically covered from day one.
        Maturity Benefit
        Remember, term insurance doesn't pay anything if you outlive the policy term. It only provides a benefit if you pass away during the policy period.
        Overseas Death
        Some policies might have restrictions on claims if the death occurs outside the country. Check your policy details if you travel frequently.
        Criminal Activity
        Death while committing a crime or due to involvement in criminal activity is usually not covered.
        Remember, these inclusions and exclusions can vary between different SUD Life term insurance plans. It's always a good idea to read the policy document carefully and ask questions if anything isn't clear. After all, this is an important financial decision, and you want to be sure you're choosing the plan that best fits your needs and circumstances.

        How to File a Claim with SUD Life?

        When the unfortunate event of a policyholder's death occurs, filing a claim can seem daunting. This guide will walk you and your nominee through the process of filing a claim with SUD Life, ensuring you understand each step and what to expect.

        • Claim Intimation

          01.

        • Death Claim Processing

          02.

        • Claim Decision and Communication

          03.
        Claim Intimation

        The first step in the claim process is to inform SUD Life about the claim. This should be done as soon as possible after the event occurs.

        • Visit the SUD Life website
        • Click on the "Claim Intimation" or similar link (often labelled as "Click here")
        • Fill out the online form with the required details 
        • Locate the nearest branch using the branch locator on the SUD Life website (look for a link labelled "Click here to locate the nearest branch") 

        • Visit the branch in person to submit your claim intimation 

           

        • Call 1800-266-8833
        • Available from 9:00 AM to 7:00 PM, Monday to Saturday
        • Provide the necessary details to the customer service representative

        Send your claim intimation and documents to 

        Star Union Dai-ichi Life Insurance Company Limited 11th Floor, Vishwaroop I.T Park, Plot No. 34, 35 & 38, Sector: 30A of IIP, Vashi, Navi Mumbai – 400 703

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