ASSIGNMENT

OF
BANKING & INSURANCE
ON
“CHILDERN POLICY”

SUBMITTED TO ; SUBMITTED BY,

R.S.DEOL KARAN WADHERA
RT1803A16
MBA 4TH C
Parameters of the written report
PARAMETERS MAXIMUM MARKS MARKS OBTAINED
INTRODUCTION 5
COMPARISON BASIS 2
COMPARISON & 5
INTERPRETATION
CONCLUSION 3
TOTAL 15
CONTENTS
 INTRODUCTION TO PRODUCTS OF VARIOUS COMPANIES
 COMPARISON BASES
 COMPARISON AND INTERPRETATION
 CONCLUSION
 INTRODUCTION TO CHILDERN POLICY

 LIFE INSURANCE CORPORATION

The
various
Jeevan Anurag Komal Jeevan children
CDA Endowment Vesting At 21 Marriage Endowment Or policies
Educational Annuity under LIC
CDA Endowment Vesting At 18 Plan
are:-
Jeevan Kishore Jeevan Chhaya
Child Career Plan Child Future Plan
Child Fortune Plus

For the assignment I’m taking CHILD FUTURE PLAN:-

Introduction:
This plan is specially designed to meet the increasing educational, marriage and other
needs of growing children. It provides the risk cover on the life of child not only
during the policy term but also during the extended term (i.e. 7 years after the expiry
of policy term). A number of Survival benefits are payable on surviving by the life
assured to the end of the specified durations.

Options:
You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium
payment and Premium Waiver Benefit.

Payment of Premiums:
You may pay the premiums regularly at yearly, half-yearly, quarterly or through
Salary deductions over the term of policy. Premiums may be paid either for 6 years or
upto 5 years before the policy term.

Sample Premium Rates:

Following are some of the sample premium rates per Rs. 1000/- S.A.:
 For 6 years’ Premium paying term
Age Maturity Age
23 24 25 26 27

0 112.55 108.00 103.65 99.45 95.45

4 132.35 127.00 121.85 116.90 112.15

8 156.20 149.90 143.85 138.05 132.45

12 184.20 176.85 169.75 162.95 156.40

For Premium paying term = Policy Term

less 5 years
Age Maturity Age
23 24 25 26 27

0 53.10 49.45 46.20 43.25 40.60

4 71.80 66.90 61.65 57.00 52.95

8 107.80 96.30 86.75 78.75 71.90

12 184.20 155.40 133.90 117.25 108.05

Mode and High S.A. Rebates:

Mode Rebate:
 2% of Tabular
Yearly mode -
Premium
1% of the tabular
Half-yearly mode -
premium
Quarterly & Salary
-NIL
deduction

Sum Assured Rebate:

Sum Assured - Rebate (Rs.)

1,00,000 to 2,99,999 - Nil
3,00,000 to 4,99,999 1.5 %o S.A.
5,00,000 and above - 2 %o S.A.

 UNITED INDIA ASSURANCE

 Children Policy
-INSURANCE COVER APPLIABLE TO CHILDREN

Basic Cover
• Cover is applicable to two children in the age group of 0 to 18 years whose parents’ age
does not exceed 60 years.
• Cover is to provide relief to insured children in the case of death of either/both of the
parents arising out of accident.
• In the event of death of the parent(s), Rs.25,000/- will be deposited in the name of the
child with the GIC Asset Management Co. Ltd. and the benefits will be provided as
under –

Benefits Provided

Age of the Amount of Payable to

children Relief
1-5 years Rs.1,200/-per Surviving parent or guardian
annum
6-11 years Rs.1,200/- per Surviving parent or guardian, provided the expenditure is
annum incurred for the children’s education

12-17 years Rs.2,400/- per Surviving parent or guardian provided the expenditure is
annum incurred for the children’s education

18 years Balance amount To the children on attaining the age of 18 completed years
to the child’s
credit
In the event of the death of the children before attaining 18 years, the balance amount standing to
the credit of the children will be paid to the surviving parent/guardian.

Premium
Rs.15/- per child per annum.(coverage limited to two children only and the premium would
be Rs.30/- per annum.)

Discount
Varies from 5 to 30% depending upon the group size.

Unique Features
• Relief to the children in the event of death of any of the parents
• Relief to orphaned children for maintenance and education
Lump-sum payment on attaining the age of 18 completed years
Hence the total premium for a comprehensive policy would as follows:
i. Rs.32/- for comprehensive cover to the women inclusive of husband
ii. Rs.30/- for two children
Totaling Rs.62/- only for the entire family cover.
The insured can either opt –
A full family cover for Rs.62/- or
Section I - only for Rs.32/-or
Section II - only for Rs.30/- as per their need.
In case the premium is routed through a single source, the applicable discount would be the
highest and the premium at the lowest.
 New India Assurance
THIS INSURANCE COMPANY IS DEALING ONLY IN THE GENERAL
POLICIES SUCH AS VEHICAL INSURANCE, MARINE INSURANCE ETC.
 TATA AIG
The various children policy under Tata AIG are:-
 Tata AIG Life InvestAssure Superstar
 Tata AIG Life United Ujjwal Bhawishya Plus
 Tata AIG Life Assure 21 years Money Saver
 Tata AIG Life MahaLife Gold
 Tata AIG Life Assure Career Builder
 Tata AIG Life Assure Educare at 18 & Assure Educare at 21
 Tata AIG Life Starkid

Tata AIG Life InvestAssure Superstar

As a parent, you shower many blessings on your children, including planning for a good
education, savings for marriage, or setting up a business.

While no one can foresee the future, it’s clear that without you and without the financial
contribution you make, your child’s future can be at a risk. Fortunately, there is something you
can do today to help protect that future. Everyone wants the best for the little loved ones in their
lives - from keeping them healthy and happy, to providing for their secure financial future.

Give your children the protection they deserve with Tata AIG Life InvestAssure Superstar - a
non- participating unit linked endowment plan with an inbuilt Waiver of Premium (WOP)
benefit.

Key features include:

• Sum Assured is paid to the nominee on death of insured, but policy benefits continue till
Policy Term
• Option to choose any one of the following Waiver of Premium (WoP) benefits in case of
death or total permanent disability of the insured.
○ Family Guard - We will pay 100% of the future premiums into your policy as if
the policy is on monthly mode (OR)
○ Family Advantage - We will pay 50% of future premiums into your fund as if the
policy is on monthly mode and 50% to the policyholder/nominee as if the policy
is on monthly mode
• Maturity Bonus* of up to 4% of Regular Premium Fund Value
 • Option to save under Systematic Money Allocation & Regular Transfer Investment
(SMART)
• Flexible policy term 10 - 25 years
• Flexible premium paying term 5, 10 - 25 years Option to choose between the following
fund types – Top 50 Fund, Top 200 Fund, Super Select Equity Fund, Aggressive Flexi
Fund, Stable Flexi Fund, Large Cap Equity Fund, Bond Fund & Super 110% Capital
Guarantee Fund#
• Option to choose between the following fund types – Top 50 Fund, Top 200 Fund, Super
Select Equity Fund, Aggressive Flexi Fund, Stable Flexi Fund, Large Cap Equity Fund,
Bond Fund & Super 110% Capital Guarantee Fund#
* Subject to all due premiums paid and WoP benefit not being triggered anytime during the
premium paying term.

#Super 110% Capital Guarantee Fund is available only for the policies with premium paying
term greater than or equal to 20 years & for issue age less than or equal to 45 years at issue & for
a sum assured less than or equal to 20 times of Annualised premium.
Eligibility
Features

Minimum/Maximum Issue Age 18 / 55 yrs

Maximum Maturity Age 65 Years

Minimum Premium

Premium Paying Term

Mode 5 10 – 25

Annual 48,000 20,000

Semi
24,000 12,000
Annual

Quarterly 12,000 6,000

Monthly 4000 2,000

Premium Mode Annual/Semi-annual / Quarterly / Monthly

Premium Payment Period Regular/Limited

Minimum Sum Assured 5 times Annualised Premium

Maximum Sum Assured Policy Term * Annualised premium

Riders
The following riders can be taken at a nominal additional cost - Tata AIG Life Critical Illness
Lumpsum Benefit Rider (UIN: 110C012V01), Tata AIG Life Accidental Death Benefit Rider
(UIN:110C003V01) OR Tata AIG Life Accidental Death & Dismemberment Benefit (Long
Scale) Rider (UIN: 110C004V01)
Tax Benefits:
Premiums paid under this plan are eligible for tax benefits under section 80C of the Income Tax
Act, 1961. Premium paid towards Tata AIG Life Critical Illness Lumpsum Benefit Rider is
eligible for tax benefit U/s 80D of the said Act. Moreover, life insurance proceeds enjoy tax
benefits as per section 10(10D) of the said Act. #
 Hdfc standard life
The various children policy are as follows:-
• HDFC Children's Plan
• HDFC YoungStar Super
• HDFC YoungStar Supreme
• HDFC YoungStar Super Suvidha
• HDFC YoungStar Supreme Suvidha
• HDFC SL YoungStar Champion Suvidha

HDFC YoungStar Super Suvidha

Premium payment minium premium annually is rs. 15000 and rs. 8000 half
yearly.maxiumum annual premium payable is rs 75000 annually.
Term limit is minimum for 10 years and 20 years maximum.
Advantages
• No need to go for medicals. Just filling a Short Medical Questionnaire will do
• This plan gives you Bumper Addition to the fund value at Maturity. Your fund value will
be augmented by addition of Bumper Addition, which is a percentage of your original
annualised premium and depends on the policy term chosen.
• In case of your unfortunate demise, we will pay the Sum Assured to your child
(Beneficiary). Your family need not pay any further premiums.
• In the long term, the key to building great maturity values is a low Fund Management
Charge (FMC). We have a low FMC of only 1.25% per annum (of the fund’s value)
• You can choose to pay your premium as either Half Yearly or Yearly. You also have a
range of convenient auto premium payment options
• You can change your investment fund choices in two ways:
○ Switching: You can move your accumulated funds from one fund to another
anytime
○ Premium Redirection: You can pay your future premiums into a different
selection of funds, as per your need
• Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961

 Birla sun life insurance

The various polices are as under:-
 Children’s Future Solutions
 BSLI Dream Child PlanBSLI Saral Children’s Plan
BSLI Dream Child PlanBSLI Saral Children’s Plan

BASIS OF DIFFERENCES

 ENTRY AGE
 MINIMUM PREMIUM
 MAXIUM PREMIUM
 TERM PERIOD
 DEATH BENEFIT
 MATURITY BENEFIT
 MINIMUM PREMIOUM PAYMENT PERIOD TERM
 PARTIPAL WITHDRAWL
 SURRENDER VALUE.
  TAX BENIFIT

COMPARISON OF VARIOUS COMPANIES ON CHILERN POLICY

 SOURCE:-HTTP://WWW.BIMADEALS.COM/LIFE-INSURANCE-
INDIA/COMPARE-CHILD-PLAN-COMPANIES.PHP
NOW THE BASES OF COMPARISON BETWEEN THE COMPNIES
ASSIGNED;
 AS NEW INDIA ASSURANCE IS DEALING ON THE GENERAL INSURANCE SO IM
NOT TAKING IT FOR COMPARISON.

COMPANIES

/BASIS

ENTRY AGE LIFE INSURED LIFE INSURED LIFE INSURED LIFE LIFE INSURED
21 TO 50 YEARS 18 TO 50 YEARS 18 TO 50 INSURED 18 21 TO 50 YEARS
YEARS TO 50 YEARS
CHILD CHILD CHILD
CHILD CHILD
3MONTHS TO 30 DAYS TO 13 3MONTHS TO
17 YRS YRS 3MONTHS TO 0 TO 15 YRS 17 YRS
17 YRS

MINIMUM RS. 10,000 RS. 10,000 RS. 15,000 RS. 12,000 RS. 12,000
PREMIUM

MAXIUM RS.65.,000 RS.75,000 RS.85,000 RS.90,000 RS.75,000

PREMIUM

TERM PERIOD 20 YEARS 20 YEARS 20 YEARS 20 YEARS 20 YEARS

DEATH 100% SUM 100% SUM 100% SUM 100% SUM 100% SUM
BENEFIT ASSURED, ASSURED WITH ASSURED ASSURED ASSURED,
WITH LUMP RIDERS WITH RIDERS WITH THE PREMIUM
SUM FUTURE WHOLE WITH RIDERS
PREMIUM & PREMIUM
WITH RIDERS
AT ONCE

MATURITY ACUMILATED ACUMILATED ACUMILATED ACUMILATED ACUMILATED

BENEFIT AMOUNT WITH AMOUNT WITH AMOUNT AMOUNT AMOUNT ON
GAURANTEED GAURANTEED WITH WITH MATURITY
BENEFITS BENEFITS GAURANTEED GAURANTEE DATE
BENEFITS D BENEFITS

MINIMUM 3 YEARS 10 YEARS 3 TO 5 YEARS 3 TO 5 3 TO 5 YEARS

PREMIUM YEARS
PAYMENT
PERIOD TERM

PARTIPAL AFTER 3 AFTER 3 AFTER 3 AFTER 5 AFTER 3

WITHDRAWL YEARS YEARS YEARS YEARS YEARS
SURRENDER 100% AFTER 3 100% AFTER 5 100% AFTER 5 100% AFTER 100% AFTER 3
VALUE YEARS YEARS YEARS 5 YEARS YEARS
TAX BENIFIT under section 80C under section 80C under section under section under section
and 10(10D) of and 10(10D) of the 80C and 10(10D) 80C and 10(10D) 80C and 10(10D)
the Income Tax Income Tax Act, of the Income of the Income of the Income
Act, 1961 1961 Tax Act, 1961 Tax Act, 1961 Tax Act, 1961

CONCLUSION
FROM THE ABLOVE TABLE WE CAN SAY :-
• LIC IS THE MOST SUITABLE FOR THE CHILD POLICY DUE TO ITS
TERM FEATURES.
• HDFC STANDARD LIFE , BEING A PRIVATE PLAYER IS MORE
TOWARDS MONETORY BENITITS AS PER THE DATA.
• MOST OF THE PRODUCTS UNDER CHILD POLICY ARE SIMILAR IN
NATURE
• THE OFFERING OF EACH AND EVERY COMPANY IS SIMILAR TO
THE EXTENT OF BENEFITS TO CUSTOMERS.
• MATURITY BENEFITS ARE MOST SUITABLE UNDER LIC ,HDFC
ETC.
• THE TAX BENEFITS ARE THE SAME FOR ALL.