Parents value the well-being of their children above all else and strive to protect them from uncertainties. Securing the financial future of a child, particularly for major life events like higher education and marriage, holds significant importance. Adequate financial backup can greatly support a child in pursuing higher education and achieving a fulfilling career. To ensure a secure future for their child, having the best child insurance plans as part of an insurance strategy becomes crucial.
While some insurance agents advocate for term life insurance policies to secure the future of children, it is essential to understand the nuances of various insurance options. Term insurance indeed provides cost-effective premiums but comes with a limitation – the coverage ceases with the death of the insured. On the other hand, child insurance plans continue to provide coverage even after the demise of the policyholder. In such cases, the insurer takes over the premium payment, ensuring that the policy benefits remain intact for the beneficiaries without a heavy financial burden.
Benefits of Purchasing Child Plan:
Child insurance plans offer numerous advantages that make them a wise choice for parents looking to secure their child’s future. Some of the key benefits of these plans include:
1. Rider Options: Child plans allow the addition of rider policies, which enhance the coverage of the base plan at affordable premiums. These riders provide extra security, filling gaps in the base plan’s coverage and offering comprehensive protection.
2. Tailored for Growing Children: Insurers design child policies with a focus on addressing the various needs of growing children. These plans cater to major life events associated with a child’s development, ensuring financial support for significant milestones.
3. Financial Backup for Important Events: Child insurance plans offer the flexibility of customizing the payout options. Policyholders can choose specific events, such as higher education or wedding, for which the payouts will be reserved. This feature provides financial security during critical situations and allows parents to focus on their child’s important life events without financial worries.
Some Child Plans
Bajaj Allianz Young Assure
Bajaj Allianz Young Assure is a top-notch child insurance policy in India, designed to cater to the diverse needs of Indian parents across the nation. This plan comes with numerous benefits and comprehensive features, making it an ideal choice for securing a child’s future. Key highlights of the plan include:
- The policy offers a maximum maturity age of 60 years, with the minimum entry age varying from 18 to 50 years.
- There are three flexible options for cash installments, allowing policyholders to choose the one that suits their financial requirements.
- Special offers are extended to female policyholders, adding an extra layer of benefits for women.
- Tax benefits can be availed under the prevailing tax laws, making it a tax-efficient investment option.
- The policy can be personalized by adding appropriate riders, enabling policyholders to enhance the coverage as per their specific needs.
- In the unfortunate event of permanent total disability due to an accident, the policy offers benefits to the policyholder.
- Bajaj Allianz Young Assure aims to provide substantial financial support for significant life events like weddings and education, ensuring that children can pursue their dreams without financial constraints.
Max Life Shiksha Plus Super:
Max Life Shiksha Plus Super is a versatile policy offering a range of features to secure a child’s future. Key aspects of this policy include:
- Eligibility: Individuals aged 21 to 50 years can purchase this policy, with a maximum maturity age of 65 years.
- Multiple Coverage Options: The policy provides five different coverage options, allowing policyholders to choose the one that best suits their needs.
- Flexible Premium and Maturity Terms: The premium term and maturity term can be adjusted according to the policyholder’s financial goals and requirements.
- Partial Withdrawals: The policy allows for partial withdrawals during times of need, offering flexibility and liquidity.
- Comprehensive Benefits: In the event of the policyholder’s demise, beneficiaries receive a lump sum payout, along with additional benefits such as family income benefits.
- Premium Funding Option: The policy offers the option of funding benefits for the premium amount.
- Loyalty Additions: Policyholders receive loyalty additions, enhancing the overall value of the policy.
- Tax Benefits: The policy provides tax benefits, making it a tax-efficient investment option.
- Maturity Amount: The maturity amount is equivalent to the fund value, ensuring a substantial corpus for future needs.
ICICI Pru Smart Kid Assure Plan:
ICICI Pru Smart Kid Assure Plan is another notable child insurance plan with a range of attractive features:
- Eligibility: The plan can be availed by individuals aged 20 to 54 years, with a maximum maturity age of 64 years.
- Premium Flexibility: Policyholders have the flexibility to choose between single premium payment or regular premium payment throughout the policy tenure.
- Investment Control: Policyholders have complete control over the choice of funds for investment, with eight types of funds available, including balanced funds, debt funds, and equity funds.
- Fund Switching: The policyholder can switch funds during the policy tenure, offering the freedom to adapt to changing financial circumstances.
- Withdrawal Option: After the policy has completed five years, policyholders can make partial withdrawals as per their financial needs.
- Customizable Coverage: The insured can select the coverage amount as per their specific requirements.
- Loyalty Additions: The policy offers loyalty additions, providing additional benefits over time.
HDFC Young Star Super Premium:
HDFC Young Star Super Premium is a comprehensive child insurance plan with several notable features:
- Maturity Age and Eligibility: The policy offers a maturity age of 75 years and can be purchased by individuals aged 30 to 60 years.
- Death Benefit: In the unfortunate event of the insured’s demise, HDFC provides yearly payouts to the beneficiaries.
- Customizable Plans: The policy can be tailored to suit the specific insurance needs of the policyholder.
- Coverage Options: Policyholders have the choice between two options for insurance coverage.
- Investment Funds: The plan offers four types of investment funds, providing control over the choice of investments.
- Fund Switching: Policyholders have the flexibility to switch among the available funds as per their preferences.
- Policy Term: The maximum term of the policy is 20 years, with a minimum tenure of 10 years.
- No Medical Tests: Policyholders are not required to undergo any medical tests.
- Maturity Payout: The fund value is paid to the beneficiaries upon the maturity of the policy.
- Tax Benefits: The policy offers tax benefits, making it an attractive investment option.
- Premium Flexibility: There is no maximum premium limit for this policy, while the minimum premium is INR 15,000.
Birla Sunlife Vision Star Plan:
The Birla Sunlife Vision Star Plan is another comprehensive child insurance plan with several advantageous features:
- Maturity Age and Eligibility: The policy has a maturity age of 75 years and can be purchased by individuals aged 18 to 55 years.
- Minimum Assured Sum: The policy provides a minimum assured sum of Rs 1 lakh.
- Death Benefit: In the event of the policyholder’s demise, a death benefit is provided to the nominee.
- Maturity Benefit: The accrued benefits are provided at the maturity of the policy.
- Premium Payment Flexibility: Premiums can be paid on a monthly, quarterly, half-yearly, or annual basis.
- Continuation Benefit: If the insured is unable to pay the premium due to unfortunate reasons, the policy will continue as a reduced paid-up policy, provided premiums have been paid for at least three years.
- Loan Facility: The policy offers the option of taking a loan, subject to a maximum credit of the maximum surrender value.
- Tax Benefits: The policy is eligible for tax benefits, enhancing its overall appeal.
LIC Jeevan Ankur Plan:
The LIC Jeevan Ankur Plan is considered one of the best policies for children, offering a range of benefits:
- Premium Flexibility: Policyholders can choose from multiple premium payment options, including quarterly, half-yearly, annual, and monthly.
- Loyalty Addition and Maturity Benefits: The policy provides loyalty additions and maturity benefits, enhancing the overall returns.
- Rider Options: Policyholders have the option to add rider policies for accidents or critical illnesses, providing additional coverage.
- Guaranteed Surrender Value: Both regular premium and single premium policyholders receive a guaranteed surrender value if they choose to surrender the policy.
- Revival Option: In case the policyholder stops paying premiums, the policy can be revived within five years of the last premium payment.
Post Office Child Plans:
The Indian post offices offer insurance services, making child plans accessible to parents across the country, even in remote areas. The major post office child plans include:
- Sukanya Samriddhi Yojana: A special insurance plan designed for girl children.
- Bal Jeevan Bima: Offers lower premium rates and a decent sum assured upon maturity, catering to different socio-economic backgrounds.
Aviva Young Scholar Advantage Plan:
The Aviva Young Scholar Advantage Plan is an excellent option for securing a child’s future, with the following features:
- Policy Term Flexibility: The plan offers a term ranging from 10 years to 25 years.
- Death Benefit: In the event of the policyholder’s demise, the beneficiaries receive a lump sum amount.
- Premium Waiver: Future premiums are waived off if the policyholder passes away during the policy term.
- Flexibility in Withdrawals: The plan allows flexibility for withdrawing money during critical times.
These child insurance plans offer various benefits and cater to different financial needs and preferences. Parents can choose the one that aligns with their goals and provides the best financial security for their child’s future.
Child insurance plans play a crucial role in securing the future of our children. They offer a combination of life insurance and savings to meet the financial needs of a child’s education, marriage, and other life events. With various options available from different insurance providers, parents can choose the best plan that suits their financial goals and provides the necessary protection for their child’s future. It is essential to carefully evaluate the features, benefits, and premiums of different plans to make an informed decision that ensures a secure and prosperous future for the child.
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