Post Office Child Plan (Bal Jeevan Bima) is the stand-alone child plan by Postal Life Insurance which comes with perks of guaranteed returns and minimal risk involvement. This insurance plan for children is a hit especially among the economically humble sections of the society where risk appetite is not much while guarantee and safety is the prime concern.
What is Post Office Child Plan?
Going by the name of Bal Jeevan Bima, post office child plan is made to help the Indian parents build a decent corpus for the future of their children. Since this is powered and monitored by India Post, there is least risk involved and whatever the money is pooled in this policy gets safely returned. Although, due to such high risk-averse factor, returns are humble too, i.e. for every Rs.1000, there is a bonus of Rs.58.
What All Post Office Child Plan Covers?
Being a highly basic insurance instrument, post office child plan covers only death of the proposer, i.e. the parent. In case of untimely demise of the parent, the child shall receive the sum assured along with all the bonuses accrued at the completion of the policy. Although at the event of death of the parent, payment of all future premiums is waived off.
How Post Office Child Plan Functions?
It’s the easiest and most convenient way of building a decent corpus for your child without having to worry about risks involved in the finance market.
The parent purchases the policy in their name whereas the child becomes the beneficiary. This is because the onus of paying premiums falls directly on parent(s) while the child simply reaps the benefits of the same.
This premium is to be paid till the end of the policy term. As soon as the term expires, so does the policy and it cannot be further renewed.
|Entry Age||Child: 5 – 20 years
Proposer: 18 – 45 years
|Maximum Sum Assured||Rs.3 lakh|
|Maximum No. of Members||2 children|
Employees of the following organizations are eligible for this children policy (Bal Jeevan Bima) by Postal Life Insurance:
- Central Government
- Defence Services
- Para Military forces
- State Government
- Local Bodies
- Government-aided Educational Institutions
- Reserve Bank of India
- Public Sector Undertakings
- Financial Institutions
- Nationalized Banks
- Autonomous Bodies
- Extra Departmental Agents in Department of Posts
- Employees Engaged/ Appointed on Contract basis by central/ State Government where the contract is extendable
- Employees of all scheduled Commercial Banks
Note: Employees of private sector are excluded from this list.
Documents Required to Apply
Make sure to submit following documents when applying for Post Office Child Plan (Jeevan Bima):
- Proposal Form or Application Form
- ID Proof of the child and proposer (Aadhaar Card, Ration Card, etc.)
- Age Proof (Birth Certificate, Matriculation Certificate, Aadhar Card, etc.)
- Address Proof (Ration Card, Voter’s ID, etc.)
- Passport-sized Photographs
- Any other documents demanded by the insurer
Following points are noteworthy in order to have better understanding of Post Office Child Plan, i.e. Bal Jeeva Bima or Children’s Policy:
- This plan can be easily bought from any of the nearest post offices located
- Nominee can be changed any time during the policy thus making the plan quite flexible
- Maturity benefits include both the sum assured and bonuses accrued
- In case of death of the child, the policy ceases to exist and bonus + sum assured becomes immediately payable
- There is no loan facility in this plan, i.e. one cannot take loan against Bal Jeevan Bima
Advantages of Buying Post Office Child Plan
- On the unfortunate demise of the parent, premiums are waived off but policy continues to exist till the completion period
- If one is not able to pay premium due to some reasons, they can convert the policy to paid-up plan which will cancel out some of the benefits of the plan (Only if premiums have been paid for 5 continuous years)
- No risk involved, i.e. payback is guaranteed
- It’s one of the most affordable child insurance plans available in the market
- Duplicate bond certificate can be issued in case the original policy document is lost
Q. Do I get any tax benefits in this plan?
A. Yes, all the premiums paid towards this plan are exempted from tax as per the Section 80C of Income Tax Act, 1961.
Q. I work in a private company. Can I buy this plan for my children?
A. No. As per the policy rules, employees of private sector are not eligible for Postal Child Plan.
Q. What is the bonus that I can avail in Bal Jeevan Bima?
A. Bal Jeevan Bima, i.e. Postal Child Plan gives the same bonus that ir forwards for its endowment policy. For every Rs.1000of Sum Assured, there is a fixed bonus equalling to Rs.58.
Q. Do I need to submit medical reports of my child for buying this plan?
A. No. There is no need of any medical tests to be submitted although it is imperative that the child is in a healthy state.