This page provides all the details you need to know about the Children Policy (Bal Jeevan Bima).
Before you read this page, please check PLI Overview to learn about the basics of PLI.
Table of Contents
What is CP?
CP stands for Children 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 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 your 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 your child
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.
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
Minimum amount - Rs. 20,000
Maximum amount - Rs. 3 Lakhs or equal to the sum assured amount of the parents' policy whichever is less
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.
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 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.
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.
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.
There is no surrender facility in this policy.