Child Safety Insurance is an insurance plan designed to ensure the future financial security of children. It is mainly taken out by parents or guardians, so that the child’s future financial support is assured in the event of an accident, illness, or life-related problem.
Suitable for:
Generally: The father of the child is considered as the premium payer in this plan. If the father is not alive or is considered ineligible for insurance, then the mother of the child can be the premium payer in this plan.
In that case, the mother of the child must be educated (secondary or equivalent examination passed). Under this plan, multi-faceted security is provided for the child. This plan is for all the parents who want to invest money for the future security of their child.
Features/Benefits:
1- Entry age: Minimum age of the child is 6 months and maximum 17 years.
2- Entry age: Minimum age of the premium payer is 20 and maximum 50 years.
3- Minimum sum assured is 6,000/-, maximum sum assured is according to the financial capacity of the insured.
4- Term: 8-24 years.
5- The child’s age at maturity should be between 18 and 25 years.
6- Premium payment method: Semi-annual and annual.
7- If the premium payer dies before the maturity, then all premiums paid from the date of death until the maturity are waived.
8- For every thousand insured, the premium is paid at the rate of 100 taka annually from the date of death of the payer until the maturity or if the child dies before the maturity, until the day of the child’s death.
9- The full sum assured is paid along with the bonus earned on maturity.
10- If both the premium payer and the child survive till the maturity of the insurance, then the sum assured is paid along with the bonus earned on maturity.
11- No proposal without a medical examination will be considered.
12- The proposal will be accepted if both the child and the premium payer are found to be in good health during the medical examination.
13- Surrender value is given in this insurance but no loan is given.
14- Supplementary benefit cannot be taken with this insurance.
15- The posthumous claim amount is exempt from income tax.
Why is Child Safety Insurance necessary?
- To plan and protect your child’s future
- Financial security in uncertain life situations
- Advance preparation for education expenses
Child Safety Insurance (with profit)
Child Safety Insurance (With Profit) refers to an insurance plan where the child is paid a profit or benefit along with the principal amount at the end of a specified term.
It is a type of profit-based (participating) life insurance policy, which is credited to the child’s name in the form of an additional bonus or paid at the end of the term according to the profit earned by the insurance company during the year.
Key Features (Child Safety Insurance with Profit):
- Principal Protection: A fixed amount of money is paid to the child at the end of the specified term.
- Profit or Gain: If the insurance company makes a profit, then an additional bonus or profit is added to the child’s policy every year.
- Premature Death Protection: If the insured (guardian) is not alive, the insurance company waives future premiums and pays the specified amount to the child.
- Assistance in expenses like education, marriage: The money deposited at the end of the term is useful for meeting the child’s higher education or other important needs.
- Tax Benefits: In many cases, tax deductions are available as per the Income Tax Act.
Major insurance companies offering child insurance:
- State-owned life insurance company.
- Offers Child Protection Policy and Children Endowment Policy for children.
2- Guardian Life Insurance Ltd.
- Their Guardian Projonmo policy helps in securing the future of Child Safety Insurance.
- This policy secures the future of the child in the event of the premature death of the guardian and provides attractive benefits at the time of maturity.
3- Meghna Life Insurance Company Limited (Meghna Life Insurance Co. Ltd.)
- Offers Child Safety Insurance (Profitable) and Child Safety Insurance (Non-Profitable) policies.
4- Sandhani Life Insurance Company Limited (Sandhani Life Insurance Co. Ltd.)
- Offers Children Endowment Insurance and Child Protection Endowment Insurance (With Profit) policies.
Related topic: Dowry Insurance List No. 72
