ABSLI Child Future Assured Plan

There are three main aspects to consider when buying a child savings plan like this one:

• Life Insurance Cover: The amount should provide for your family’s daily needs in your absence.
• Education Milestone Benefit: Factor in the current costs of schooling and higher education. Consider the impact of inflation to ensure that you save enough. Also think about when the pay-outs would be required.
• Marriage Milestone Benefit: The child insurance plan pays this benefit at the end of the policy term. So you would need to choose a policy term accordingly.

Yes, you can. But the minimum policy terms are eight years when you choose the Marriage Milestone Benefit, 10 years for the Education Milestone Benefit, and 11 years for the Education and Marriage Milestone Benefit. So, consider the timelines before you finalize the policy terms.

While you cannot withdraw money from the plan corpus, your nominee will receive the assured benefits as per the schedule:

• Education Milestone Benefit: You can time the policy pay-outs based on the child’s educational needs. For instance, you could fix a pay-out date around the time your child is likely to start college.
• Marriage Milestone Benefit: This benefit is payable at the end of the policy term.
• Death Benefit: If the policyholder passes away during the policy term, the child receives the sum assured.

The life insurance coverage should take care of your family’s regular expenses, including the costs of education and/or marriage for your child. Your loved ones should not have to compromise on their lifestyle in your absence.

The premium paid annually will provide you tax benefits² under Section 80C of the Income Tax Act, 1961. Any income received from the plan is eligible for tax benefits1 under Section 10 (10D) upon fulfilling conditions/ requirements of the section.