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  • Child Insurance Plans

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    In India, life insurance for a child is not a very popular concept. But this is a highly beneficial policy type that provides maturity benefits, tax savings, flexible repayments, and high returns as compared to fixed deposits or provident fund accounts.

    When compared with other investment tools like mutual funds or fixed deposits, child insurance plans are a safe and secure way to earn higher interest rates on the investment. Flexible payments at maturity as well as the option to invest in equity or debt instruments interchangeably make these policies the choice option for people who have a decent level of financial knowhow.

    Life insurance for children loosely implies buying of life insurance policies by the proposer, whose benefits will then be forwarded to the child at various important junctions of his/her life such as education, marriage, mortgage payment, and so on.

    Reasons to Buy Children’s Life Insurance Policies:

    Child insurance plans offer assured benefits to your child or ward when they come of age and need the funds for future prospects. So, if your child is 8 years old now, then you can buy a child insurance plan that will mature in 10 years when he/she turns 18. The funds can be released as a lump sum, or you can choose partial payments so that the money may be partially withdrawn as and when needs arise.

    Advantages Over General Life Insurance Policies:

    The major advantages of life insurance policies for children over general life insurance policies are:

    • Maturity benefits to be paid in case the insured survives the policy tenure.
    • In case of death of the insured, remaining premium will be paid by the company till maturity. The sum assured will be paid out normally at the death of the insured.The maturity amount will be paid when the policy matures.

    Features of Child Insurance Plans:

    In general, life insurance policies for children are meant to provide a cushion to s child in case the death of a parent presents financial difficulties in pursuing important life choices. These plans are available in both linked and non-linked varieties, with various options to singly or periodically pay premiums.

    Premiums: Premium can be paid as a lump sum at the beginning of the policy tenure, or you can choose to pay it periodically. Most companies provide options such as monthly/quarterly/half-yearly/annual premium collection, which can be given standing instructions to be credited directly from your bank accounts. The amount of premium depends on the maturity and sum assured figures that you have chosen.

    Sum assured: The sum assured implies the amount that will be paid out in case of the policyholders’ demise. In general, sum assured should be above 10 times the current gross income of insured.

    Maturity: The maturity amount should be chosen with an eye on the future. Assuming your child is 8 years old, and his policy will get matured in 10 years’ time, then you should take into consideration factors such as inflation and interest rates. If you fail to consider these factors, the released funds may fall short of the requirements in future. Also, plans such as single premium plans may not provide maturity benefits, so kindly check the policy documents clearly before applying.

    Tenure: These life insurance policies are generally meant for children up to the age of 18/21, though you can find specific plans that have a higher age ceiling. So tenures can be selected from birth until the child reaches a pre-defined age. The insured should not be more than 70 years at the time of policy maturity.

    Segmented payouts: With child life insurance policies, you can select if the child will get payment as a lump sum, or in yearly instalments. Such a setting will help in paying dues such as college fees, mortgage amounts etc.

    Premium waivers: An intrinsic part of child plans, premium waivers are applicable when the insured dies within the stipulated tenure. In such a scenario, the sum assured will be paid out to the beneficiary, while the premium for the remaining tenure will be paid by the insurer. At the end of the tenure, the maturity amount will be provided as detailed in the policy document. In case premium waiver is not provided automatically with the plan, you should opt for a waiver rider.

    Riders: Specific riders are available that give you more out of life insurance policy. The riders are available in three basic categories – premium waiver, critical illness, and accidental death and disability. The premium waiver may already be added with your plan, so please check the policy documents in this regard. The critical illness rider provides coverage for a set of predefined critical illnesses, while accidental death and disability riders are applicable in case of unfortunate accidents that cause disability or death of the insured.

    Types of Child Insurance Plans:

    Unit Linked Insurance Plans: The payouts at maturity of ULIPs is determined by the markets, as the funds in ULIPs will be invested in equity instruments. This plan is good for longer tenures (more than 10 years) of policies. Companies may provide the option for choosing between different investments funds, allowing you more control over the money you have invested. Some dynamic plans are also available where the interests and monies may be transferred directly and automatically from equity to debt instruments.

    Traditional endowment plans: These policies provide stable interests over the sum assured. The investments you make here are further invested into debt instruments that provide standard margins over the base amount. You should look for any bonuses you are eligible towards. In general, bonuses on traditional plans are paid from 2nd year onwards, and you can check if the bonus is in cash or if a reversionary bonus will be compounded or have simple interest.

    Some companies provide the option for flexible investment also, wherein you can decide where the premium goes, and switch between the two types of life insurance as discussed above. An example of this switching would be directing your premium into ULIPs for the first few years of the policy to earn greater profits. After that, you can invest the funds in debt instruments to standardize the profits till maturity.

    Taxation Benefits:

    Policyholders can claim deductions under Section 80C of Income Tax Act. If the premium paid in a year is more than 10% of basic insured amount, benefits can be claimed only up to 10% of sum assured amount.

    Tax exemptions are also available under Section 10 (10D) for interests earned on the investment, in case the premium paid in any year does not exceed one-tenth of the basic sum assured. Funds disbursed in case of death of applicant are fully exempted from taxes.

    Benefits of Child Insurance Plans:

    • Flexible disbursing of funds on maturity or death.
    • Premium waivers in case of demise of insured within premium collection period.
    • Secured loans are widely available against child insurance plans.
    • Tax benefits under various sections of Income Tax Act.
    • Option to choose between ULIPs and endowment plans.
    • Flexible periodic premium payment options.
    • Funds available on demise of the insured before maturity, and/or if the policy has reached maturity.

    Choosing The Right Plan:

    With the advent of private companies, the life insurance segment in India has seen phenomenal growth over the years. Every company has its own child plans but the basic structure remains the same as discussed in above sections.

    You should do proper research on life insurance for kids before making a selection. Even though child insurance plans are in essence similar to each other, there are many technicalities that differentiate products from different companies. You may find better payouts from a particular policy, or there are many riders automatically available on a product – finding the right plan for your needs is the first step towards securing your children’s future.

    You can visit the Insurance Regulatory and Development Authority of India (IRDA) website to find details of companies selling life insurance products, and then proceed to research child plans from different providers. This can be a tedious process, so here’s a way to skirt this time-consuming process.

    Comparing Products Online:

    Alternatively, you can visit various aggregator websites on the internet that provide you with comparison tools to compare various products side-by-side. This will help you in narrowing down the choices by removing plans that are not in your budget or don’t provide the cover you are looking for.

    Another advantage of comparing plans is that you can easily locate any additional features provided by a company on its child insurance plans. If you are making specific and learned comparisons, you can in all likelihood find the perfect plan for your needs in a matter of minutes.

    To use the BankBazaar life insurance policy comparison tool, you can enter details of your requirements through a few simple clicks. On entering all details, the relevant life insurance policies applicable for you will be displayed. You can then proceed to select the plans that interest you, and then compare them side by side with a single click.

    Applying for a Policy:

    Once you have selected a plan from a particular insurance provider, you can either apply directly online (if service available) or contact the provider to get a quote. Most firms will send a representative over to collect details and educate you more about individual plans. The relevant documents as asked by the company have to be in order when filling out the final application forms/details.

    Alternatively, you can use aggregator websites to find the right plan and apply directly through them. Sites like BankBazaar provide options to request a quote or apply online, and you can also receive monetary benefits and online shopping coupons at the same policy rate.

    Popular child insurance plans in India:

    Some of the notable child insurance plans available in India are as follows:

    1. HDFC Life YoungStar Udaan - This is a non-linked, participating life insurance scheme that helps parents to systematically plan and invest for their children’s education and other important life events. The plan ensures that the needs of the child are met even when the parent is not around. Key features of the plan include the following:
      1. The HDFC Life Youngstar Udaan plan is an endowment and money back plan that has multiple variants.
      2. Customers can choose from three different types of maturity benefits, based on their insurance needs.
      3. Under the Classic Waiver variant of the plan, after the death of the policyholder, the future premiums need not be paid.
      4. Guaranteed Additions accrue during the first 5 years of the investment, and these are paid out at policy maturity.
      5. The plan allows you a wide range of policy terms and premium payment options that help you plan for the future goals of your child.
      6. In spite of a limited premium payment term, you can get insurance coverage for the entire policy term.
    2. SBI Life - Smart Champ Insurance - This is an individual, non-linked, participating life insurance scheme that helps parents invest for their children’s educational needs. This plan ensures that the family is financially protected, secures the future of the child, and offers a certain level of flexibility in choosing the premium payment options. Some of the key features and benefits of the plan are as detailed below:
      1. The insured receives life insurance benefits and coverage for accidental total permanent disability (ATPD) throughout the policy tenure.
      2. In the event of death of the policyholder, the sum assured will be immediately paid out and the future premiums will be waived off.
      3. After the child reaches 18 years of age, the benefits are paid out in 4 equal annual installments.
      4. The policyholder can choose to pay the premium as a lump sum amount or select the limited premium option.
    3. Bajaj Allianz Young Assure Plan - This is a traditional, participating, limited and regular premium payment endowment plan that ensures that your family’s future is financially secure. The salient features of this plan are as follows:
      1. There are multiple policy term options and premium payment choices that the policyholder can opt for. This ensures that money is available to the family of the insured during crucial periods like child’s education, marriage, etc.
      2. Guaranteed Additions (GA), Guaranteed Maturity Benefit (GMB), and bonuses are offered to the policyholder to ensure that he/she receives good returns from the investment.
      3. Based on the customer’s future financial needs, there are three cash installment options that can be chosen from.
      4. In the event of accidental disability or death of the policyholder, comprehensive insurance coverage is offered.
      5. It is possible to enhance the coverage under the plan through appropriate riders.
      6. The insurance company offers special premium rates for female customers of the plan.

    When should I buy a child plan?

    You should ideally buy a child plan as soon as your baby is born. This allows you to accumulate more funds towards the maturity amount. Also, the younger and healthier a person is, the lower will be premiums associated with insuring them.

    Can I buy a child plan for my 15 year old?

    Yes, you are free to buy child insurance policies for your kid. However, the maturity amount and the sum assured will be low as the plans generally mature when the child turns 18, allowing you only 3 years of premium payments.

    Other Life Insurance Plans Popular Life Insurance Plans

    Secure Your Children's Future with Life Insurance Reviews

  • Page 1 of 50 1 2 3 4 5
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my life insurance with life insurance corporation from 15 years, now it is going to get closed in this year only , there agent had explained me about the policy coverage and i got my refund for insurance after 10 years and i use to pay premium on quarterly bases up to 3000 , i use to pay through on line or off line mode.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 15, 2018
    • LIC Life Insurance
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have a term plan policy with LIC. It was taken in the year of 2009. The tenure period is 10 years and almost 9 nine years completed. Every 4 years, I got some maturity amount. It is a money back policy. The policy coverage and benefits are good. For one year, the premium is Rs.2800.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 15, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 5 years and it is a money back policy. I get money back after every 4 years in this policy. I pay my premium once in 3 months through online and i am convenient with the payment options. The tenure period for this loan is 20 years.
      Was this review helpful? 0
      , chennai
      Reviewed on Nov 15, 2018
    • SBI Life Life Insurance
      "Good"
      0.5 4.0/5 "Great!"
      I took a life insurance with SBI Life and it was taken 4 years. I have chosen the policy because am holding a salary account with SBI. The policy coverage and the plan benefits are better. I pay the premium through cash. Am paying monthly 600 rupees as a premium.
      Was this review helpful? 0
      , visakhapatnam
      Reviewed on Nov 15, 2018
    • LIC Life Insurance
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have been holding my life insurance with Life insurance corporation of India, i need to pay premium on monthly bases up to 1200 it is nominal premium amount they have charged me and it use to get auto debited from my account but there agent is not good they did not explain me the policy related to life insurance clearly.
      Was this review helpful? 0
      , anantapur
      Reviewed on Nov 15, 2018
    • HDFC Life Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my life insurance with HDFC Life, there service is good they have charged premium up to 9000 rupees per year, it use to get auto debited from my account and there customer service is good they explained me about all policy it cover in this life insurance.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Nov 15, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have a life insurance policy with the LIC. I have been using their services for a while. It is too easy to make payments and never faced any issues with the policy so far. Being a government company the security for your investment is certainly there with the LIC and it is a recommendable insurance provider.
      Was this review helpful? 0
      , noida
      Reviewed on Nov 15, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my life insurance with Life insurance corporation,i have been paying premium up to 3000 on monthly bases , actually my father had applied this insurance they know about the policy clearly and they use to pay the insurance amount to agent , till now there service is good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 15, 2018
    • LIC Life Insurance
      "Good service"
      0.5 4.5/5 "Excellent!"
      I have been holding my life insurance with Life insurance corporation, they are government institution i have trust in this insurance company i use to pay premium in quarterly bases and i use to pay through off line, there customer service was good they have explain me about my policy coverage clearly.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Nov 14, 2018
    • Max Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using my term insurance with Max life insurance from last 3 month only, i use to pay premium on monthly bases and they have charge premium up to 1500 approximately and i do payment through on line and there overall service is good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 14, 2018
    • LIC Life Insurance
      "Need improvement on customer service"
      0.5 3.0/5 "Satisfactory"
      I think their customer service should be improved, I have taken jeevan anand it has the total term of 15 years. I need to pay for whole premium. The life cover is available upto certain period. LIC very much provides tax benefit, its good for me.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 14, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have applied my life insurance with life insurance corporation of India long back, i use to pay premium per month, and they have charged premium up to 2,000 rupees it nominal and i use to get auto debit, there customer service team had explained me about the policy clearly when i had applied this insurance.
      Was this review helpful? 0
      , gandhidham
      Reviewed on Nov 14, 2018
    • LIC Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have applied my life insurance with life insurance corporation of India long back, i use to pay premium per annum , and they have charged premium up to 7,000 rupees it nominal and i use to pay through cash or cheque, there support team had explained me about the policy clearly when i had applied this insurance.
      Was this review helpful? 0
      , vijayawada
      Reviewed on Nov 14, 2018
    • HDFC Life Life Insurance
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this insurance policy a long time back and the process was done online. I had been making the payments on a monthly basis and the premium amount of 1000 has been good. The premium method also has been good and there has not been any hassle faced with them so far.
      Was this review helpful? 0
      , gandhidham
      Reviewed on Nov 14, 2018
    • Bharti Axa Life Life Insurance
      "Fraud Scam"
      0.5 0.5/5 "Unacceptable"
      Entire Bharti Axa team member is fraud. They have surrender my 12 year old policy putting my signature on the surrender form. They have done forgery, done fake signature & withdrawal my money. I have complained on 2nd Nov. Since no proper resolution. my policy number 500-0035682. Request not to purchase policy from this company. Later, I came found, almost all the employee involved through out India in this fraud scam.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Nov 14, 2018
    • LIC Life Insurance
      "Due reminder should be timely"
      0.5 4.0/5 "Great!"
      I do have one or two life insurance policy with LIC. It was taken long back, its a long term policies. I am paying around 5000 quarterly. It is a conventional policy and I will getting a maturity benefits. I am making the payment through online. The premium reminder update is not that good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 13, 2018
    • HDFC Life Life Insurance
      "Good "
      0.5 5.0/5 "Blown Away!"
      I have taken 2 life insurance policies with HDFC Life, one was taken in the year 2007 and other is year back. I am very much satisfied with the policy coverage and benefits. They have introduced term plan and giving partial disability benefits. I am paying the premium of 3700 rupees monthly through ECS.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 13, 2018
    • LIC Life Insurance
      "Its Trusted"
      0.5 4.0/5 "Great!"
      Major factor I selected the LIC its govt one and its trusted one. The premium I used pay around Rs. 44k for one year for one policy. its a long term. Agent wont respond properly, they interested to sell the policy then they wont respond it. I need to work on the beneficial part.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 13, 2018
    • HDFC Life Life Insurance
      "Good policy to have"
      0.5 5.0/5 "Blown Away!"
      I hold a term insurance with HDFC worth of Rs. 15 lakhs. I opened a term insurance in the year of 2013. I have been paying the premium of Rs. 6174. I have chosen the annual payment mode. Total tenure period of the policy 15 years. This is tax benefitable policy. Since I'm a existing customer of HDFC, i have chosen the same company.
      Was this review helpful? 0
      , dehradun
      Reviewed on Nov 13, 2018
    • LIC Life Insurance
      "Good policy"
      0.5 5.0/5 "Blown Away!"
      I had taken an insurance for my daughter with Life Insurance Corporation of India. Actually its a 38,000 rupees policy and I got the double the amount of the policy. The service are good and nice. Every quarter I pay around 1100 rupees. The premium was paid through an LIC agent. The policy period for money back is 8 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 13, 2018
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