Child Plans In India – Detailed Overview

If you want to financially secure the future of your child and also finance any major event in his/her life then you must certainly purchase a child insurance plan. It provides both protection and takes care of his/her future needs.

Parents in India want to secure their child’s future and hence they take a life insurance plans that come along with investment plan. This will serve two purposes. One you can financially secure your child’s future and secondly finance for the major events in your child’s life. It could be for further studies, marriage etc.

Benefits of Child Insurance Plans:

If you take Life Insurance for Kids, you can benefit from the following:

  • Life cover for the child.
  • Build a fund for child’s future needs.
  • You can add riders to the plan.
  • Death benefit and maturity benefits are paid.
  • You can decide the premium amount based on the sum assured and the maturity amount than you choose.
  • Policy term can be taken depending on how old your child is. The policy term can be planned around the time you think that you require extra cash flow.
  • Waiver of premium rider can also be opted.
  • Partial withdrawals are allowed as and when you need to meet your child’s educational requirements or for meeting other related expenses.

Who can take Child Life Insurance?

The policy can be taken by a person who wishes to secure their child’s future. Policy can be even taken if you want to plan for the child’s major events like higher education, marriage etc. In the event you die, you can know that your child’s future is not compromised and that your child will receive the best of the education and a grand wedding that you always dreamed of.

Popular Child Plans by Insurers

Life Insurance for Kids plans offered by various companies are as follows:

  1. LIC Child Career Plan

    Features and Benefits:

    • This plan is designed to meet educational and other needs of your child.
    • Risk cover is provided on the life of your child during the policy term, this can be extended for another 7 years.
    • Survival benefits is paid if the life assured survives the term.
    • You can choose the sum assured, maturity age, policy term, mode of premium payment and the premium waiver benefit.
    • Premiums can be paid yearly, half-yearly, quarterly, or through salary deductions.
    • Premiums can be paid for up to 6 or 5 years.
  2. LIC Jeevan Ankur

    Features and Benefits:

    • Death benefits are paid on death of the assured during the policy term, on death of child when the assured is alive, on death of child or nominee after life assured’s death.
    • Maturity benefit is paid along with loyalty additions irrespective of the survival of the life assured.
    • Loyalty additions are payable on the date of maturity irrespective of the survival of the life assured.
    • You can choose accident benefit rider and critical illness rider.
    • Premiums can be paid on a yearly, half yearly, quarterly or on a monthly basis. The monthly payments are to be made through ECS only.
    • The policy can be revived within 5 years from the date of the first unpaid premium.
    • You can surrender the policy and a guaranteed surrender value is payable on single premium and regular premium policies. Single premium policies will get up to 90% of the premium paid. Regular policies will get up to 30% of the premiums paid.
  3. HDFC Life YoungStar Udaan- Child Plan

    Features and Benefits:

    • Provision to meet academic expenses of your child.
    • Provision for miscellaneous and extracurricular expenses that occur during college or school.
    • Lump sum amount is paid on maturity.
    • Moneyback benefit can be availed.
    • There are two death options that you can choose from. Classic option is when the death benefit is paid and after which the policy will terminate. Classic Waiver option is when the death benefit is paid but the policy will continue and the future premiums are waived.
    • The policy premium payment term is 7, 10 years or policy term minus 5 years.
    • You can choose the policy term as per your child’s future needs.
    • Guaranteed additions are paid during first 5 years of the policy years.
    • Accrued bonuses are payable at maturity.
    • Tax benefits are available under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

    Read More about HDFC Life Child Plans

  4. Reliance Child Plan

    Features and Benefits:

    • Protect your child’s future.
    • Fund your child’s education.
    • Support your child to set up his own business.
    • Helps you focus on your child’s development.
    • Guaranteed periodic benefits are available.
    • Maturity benefits includes 25% of the sum assured, bonus and non-negative capital guarantee.
    • Life cover is offered for the entire policy term.
    • Tax benefits are available as per the prevailing Tax Laws in India.
  5. Max Life Shiksha Plus Super

    Features and Benefits:

    • The coverage includes Family Income benefit and Funding for future premiums in the event the life insured dies.
    • You can choose the policy term, premium payment term keeping in mind your milestone.
    • You get a choice of 5 funds with different levels of risk.
    • You can make partial withdrawals to meet expenses that are not planned.
    • You have systematic transfer plan and dynamic fund allocation to protect your investment against market fluctuations.
    • In the event the life insured dies, you get a lump sum pay-out, family income benefit and funding of premium benefit.
    • On maturity you will receive a settlement equal to the fund value.
    • Guaranteed loyalty additions are payable.
    • Tax benefits are available as per the prevailing Tax Laws in India.

    Read More about Max Life Child Plans

GST of 18% is applicable on life insurance effective from the 1st of July, 2017

Types of Life Insurance
Life Insurance by Insurers
Popular Life Insurance Reads

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