What is Children Policy (Bal Jeevan Bima)? | Bal Jeevan Bima | 1 Best  life insurance cover for the children 

Table of Contents

• Blog Introduction
• What is Children Policy (Bal Jeevan Bima)?
• How Does Children Policy (Bal Jeevan Bima) Work?
• Eligibility of Children Policy (Bal Jeevan Bima)
• Policy Term of Children Policy (Bal Jeevan Bima)
• Sum Assured Amount of Children Policy (Bal Jeevan Bima)
• Bonus Rate of Children Policy (Bal Jeevan Bima)
• Maturity Benefit
• Death Benefit
• Medical Test
• Loan Facility
• Surrender Policy
• FAQ About Children Policy (Bal Jeevan Bima)
• Open Your Demat and Trading account with Zero Cost

Blog Introduction

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing Children Policy (Bal Jeevan Bima).

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

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In this blog post I will be explaining my analysis on Children Policy (Bal Jeevan Bima) . This will be a complete guide on Children Policy (Bal Jeevan Bima). Please read till end of the blog post to know the complete information about this Children Policy (Bal Jeevan Bima). Lets get started.

Before you read this Blog Post Please read the what is PLI to understand the basics of Postal Life Insurance.

What is Children Policy (Bal Jeevan Bima)?

Children Policy is a postal life insurance policy, It is also known as Bal Jeevan Bima. It is an investment cum life insurance policy. This policy provides life insurance cover to the children of the PLI Policy holders. PLI introduced insurance policy for children from 20-Jan-2006 onwards. Earlier, there were no policies for children.

How Does Children Policy (Bal Jeevan Bima) Work?

• If you have a Whole Life Assurance or Endowment Assurance policy, then you can purchase a Children Policy for your child.
• Decide the Sum Assured amount and purchase the Children Policy at a Post Office.
• Choose one of the policy terms available for your child’s age.
• The monthly premium amount will be decided based on your child’s age, sum assured amount and the policy term.
• You need to pay the premium amount every month until the end of the policy term.
• The bonus amount will be accumulated every year as per the bonus rate during the policy term.
• If both you and your child survive until the end of the policy term, then the maturity amount will be paid to you. The maturity amount is the total of the sum assured amount and the accumulated bonus.
• If you die during the policy term, then your child need not pay any premium further. The maturity amount will be paid to your child when the policy term gets completed.
• If child dies during the policy term, then you’ll receive the entire sum assured amount and any bonus accumulated till the day of death of child.

Eligibility of Children Policy (Bal Jeevan Bima)

• One of the parents (father or mother) should have a Whole Life Assurance or Endowment Assurance policy. They will be considered as the main policy holder.
• They should be within 45 years of age.
• They can buy an insurance policy for their children. A maximum of two children in a family is allowed for this policy.
• Children between the age of 5 years and 20 years are eligible for this policy.
• The main policy holder is responsible for paying the premium of the children’ policy.

Policy Term of Children Policy (Bal Jeevan Bima)

This insurance policy provides flexible term periods. You can choose a policy term period from 5 years to 20 years depending on your child’s age of entry into the policy.

Sum Assured Amount of Children Policy (Bal Jeevan Bima)

Minimum amount – Rs. 20,000 , Maximum amount – Rs. 3 Lakhs or equal to the sum assured amount of the parents’ policy whichever is less.

Bonus Rate of Children Policy (Bal Jeevan Bima)

The bonus rate for this policy will be the same as that of the Endowment Policy (Santosh). The current bonus rate is Rs. 52 per Rs. 1,000 Sum Assured per year. The bonus rate is not fixed and it changes from time to time as announced by the Government.

Maturity Benefit

If the parent (main policy holder) and the child survive till the pre-determined maturity date, then the maturity amount will be paid to the parent (main policy holder). The maturity amount includes the sum assured amount and the accumulated bonus amount.

Death Benefit

Death of the Parent: If the parent (main policy holder) dies, then the child need not pay the premium amount further. The entire sum assured amount and the accumulated bonus amount will be paid to the child when the policy term gets completed.

Death of the Child: If the child dies during the policy term, then the parent (main policy holder) will get the entire sum assured amount and any bonus accumulated till the day of death of the child.

Medical Test

No medical examination is required for the children. But, the children should be healthy on the day of buying the policy. The insurance cover starts from the date of acceptance of the application from the main policy holder.

Loan Facility

No loan facility is available on children’s policy. But, the amount accumulated in the policy can be paid up to the main policy if the premiums have been paid continuously for 5 years.

Surrender Policy

There is no surrender facility in this policy.

FAQ About Children Policy (Bal Jeevan Bima)

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