Child Insurance Plans – Are They Worth the Cost?

Raising a child in this modern world is not as easy as it was a decade ago and the financial situation of parents plays a crucial role in it. Even if the parents are able to arrange significant amounts of money for their education and life goals, an unfortunate event can wreak havoc.

Read more
Investing in your child's future:A wise decision & a loving choice
  • Insurer pays premium in case of loss of life of parent

  • Create wealth for child’s aspirations

  • Tax Free maturity amount+

  • 12+ plans available

We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold
  • Insurer pays premium in case of loss of life of parent

  • Create wealth for child’s aspirations

  • Tax Free maturity amount+

  • 12+ plans available

Nothing Is More Important Than Securing Your Child's Future

Invest ₹10k/month your child will get ₹1 Cr Tax Free*

+91
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

In such scenarios, child education plans play a crucial role by offering significant financial help. 

What Are Child Insurance Plans?

Child insurance plans offer both investment and insurance benefits, wherein, parents remain the primary policyholder. Besides, parents can start investing in this plan right after their child is born so that he/she is able to reap benefits when they pursue their dreams and goals. 

Child insurance plans are slightly different from ULIP and Endowment plans as they help build a corpus for children’s goals. Under this plan, money can be withdrawn once the child reaches a certain age, i.e. 18 or 21 years as per the insurer’s policy conditions.

Reasons To Buy Child Insurance Plans

Child plans offer multiple benefits that can help both parents and children during future eventualities. Here are some of the key reasons why one must invest in child insurance plans:

  1. Safety Against Inflation

    It is every parent’s dream to secure the future of their children. In today’s time, providing a good education is not easy due to the rising costs. Inflation in India has spared none, and education is amongst the most affected. Most of the parent’s income is used up for sending their children to a good school or college. The child plan ensured that parents do not have to spend their earnings on their children’s education. Investing systematically in this plan helps build a corpus for the years to come.

  2. Backup Against Eventualities

    No matter how much we avoid talking or thinking about death, it is unavoidable. And when it happens especially with the earning member of the family, financial catastrophe arises. Since parents are the primary policyholder of child insurance, the plan ensures children’s financial safety against the untimely demise of the parent. While a lump sum is paid upon the unfortunate demise of the parent, the policy continues until it reaches maturity.

  3. Loan Collateral

    A child insurance plan is accepted as collateral by every bank in India. Whether searching for an education loan or other needs of children, the entire process of securing a loan against this plan is easy. It also helps in on-time approval of loans. 

  4. Periodic Saving Habit

    Investing in a child plan helps form a period saving habit, which is especially required today with the increasing inflation. As children grow, they require significant funds for pursuing higher education or marriage. By investing in the premium of a child plan, inculcates a habit of savings for future expenses and grows money with it.

Invest More Get More
Invest ₹10K/Month YOU GET ₹1 Crores* For Your Child View Plans
Invest ₹8K/Month YOU GET ₹80 Lakhs* For Your Child View Plans
Invest ₹5K/Month YOU GET ₹50 Lakhs* For Your Child View Plans
Standard T&C Apply *

Benefits of Child Insurance Plans

Since child insurance plans offer both investment and insurance components, multiple benefits are covered under the plan. Look at the following benefits that help make it a must-have in the kitty of future savings:

  • It helps build a corpus for the child’s higher education and even marriage.

  • Child plans allow partial withdrawals if the child is diagnosed with multiple ailments covered under the plan.

  • This plan offers financial assistance in case of eventualities.

  • If parents are not able to pay for the premiums due to income loss for many reasons, waiver of premium rider that comes in-built in most helps cover premium of the remaining policy period.

  • Parents can also make a partial withdrawal to help their child grow talents like playing instruments or pursuing acting.

  • Child insurance offers multiple rider options that can be added to the base policy to enhance overall coverage.

Are Child Insurance Plans Worth Their Cost?

If you ask us, yes. Child insurance plans are slowly becoming the need of the hour to secure children’s financial future. Investing in such a plan is helpful that helps accumulate and grow sufficient amounts to fulfil the needs of the child. 

It is also recommended to buy child insurance online to receive extra discounts and purchase through a hassle-free process. Besides, one must select an appropriate coverage keeping the child’s future needs and goals in mind. Investing in the plan at the right time is crucial as children and inflation grow simultaneously and quickly.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

child plan investment

Investment

child plan secure

Secure

Secure your Child’s
Career Goal
Start Investing ₹10,000/Month
& Get ₹1 Crore*
*Standard T & C Apply
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Child Plan3

Child plans articles

Recent Articles
Popular Articles
Child Education Planner

05 Feb 2024

Ensure your child's dreams come true with a Child Education
Read more
Indian Bank Education Loan

16 Jan 2024

Indian Bank stands tall as a reliable partner in your academic
Read more
Education Loan for Abroad Studies

16 Jan 2024

Pursuing international education is a dream for many aspiring
Read more
Education Loan Without Collateral

16 Jan 2024

An Education Loan Without Collateral is a financial solution
Read more
Canara Bank Education Loan

15 Jan 2024

Canara Bank Education Loan is a comprehensive financial solution
Read more
Top 12 Government Schemes for Girl Child
Top 12 Government Schemes for Girl Child Government schemes for the girl child are a vital aspect of social welfare
Read more
How to Check Post Office Sukanya Samriddhi Yojana Account Balance
The Sukanya Samriddhi Yojana is a savings scheme launched in the year 2015 by Prime Minister Narendra Modi under
Read more
Sukanya Samriddhi Yojana Calculator
The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme that aims to create a corpus to
Read more
Prime Minister Schemes For Boy Child
The Prime Minister Schemes for Boy Child stand as an important initiative aimed at nurturing the boy child and
Read more
Best Child Investment Plans to Invest in 2024
Planning for the child’s secured future is not an easy task. Most of the people try to create a strong financial
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL