3 Best Features Of Child Insurance Plan Which Make It Essential

Life takes a big turn when a child enters into it. Every parent tries and works hard to give their child the best possible care, education, and a healthy lifestyle. The entire parenting plan involves providing grooming sessions to an infant, then best schools and colleges, enrolling for extracurricular skills set, etc. Although caring and grooming for a child are very expensive matters.

Read more
Investing in your child's future:A wise decision & a loving choice
Benefits of Investing In Child Plan
Waiver of Premium Benefit
Future Premiums are paid by the insurer upon death of policyholder
Flexible Payout Options
Your premiums help your child achieve their dreams through lump sum or regular payouts
Wealth Boosters
Get rewarded with Wealth Booster and Loyalty Bonus for staying invested with us
Zero Commission
We charge no commission when you buy from us. Also buy online & get extra
Tax Benefits^
You get tax benefits under Section 80(C) and no tax on returns under Section 10 (10D)
Investment Flexibility
It offers the flexibility to invest at regular intervals or as a one-time contribution
We are rated++
rating
9.7 Crore
Registered Consumer
51
Insurance Partners
4.9 Crore
Policies Sold

Nothing Is More Important Than Securing Your Child's Future

Invest ₹10k/month your child will get ₹1 Cr# Tax-Free* on Maturity

+91
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
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
9.7 Crore
Registered Consumer
51
Insurance Partners
4.9 Crore
Policies Sold
Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

If you want your child to have a bright career, you require a solid financial plan to safeguard their future against life's uncertainty. Considering the average inflation rate, higher education is going to be more expensive. Hence, you do require a plan which will cover your child's future when the time arrives.

However, usually, parents invest their money in investment tools such as mutual funds, fixed deposits, etc. but these investment tools do not guarantee an expected corpus that you require to help your child achieve his/her goals. And God forbid your untimely death, this will leave your child in shock along with the financial burden. To overcome the sheer fear of such uncertainty it is advisable to buy a child insurance plan so that your child will be independent to further proceed in their desired career path with or without you.

Features of Child Insurance Plan

Child insurance plans are an essential financial tool that provides your child an ample amount of financial support to get a good education. Many Insurance companies offer child insurance plans intending to continue the regular cash flow so that any bad event of life would not stop your child's growth at any stage in life. 

The Industry experts suggest that when your child is 5 years old it is the best time to buy a child insurance plan because when they will turn 18 years old they will have a good amount of funds to pursue the career of their choice. 

Following are the top 3 features of a child insurance plan which makes it essential

  1. Long-Term Investment

    As discussed above, a child insurance plan can give you higher returns as compared to any other investment tool. Whether you think of it as a short-term investment option or a long-term investment option, it is going to aid you financially with a sufficient amount to secure your child's future. 

    You should opt for a fixed income or a debt fund option as an additional benefit in your basic child insurance plan. This will make it easier for you to utilize the accumulated amount in an organized manner. 

  2. Goal Security

    It might have got cleared to you by now that the main reason to buy a child insurance plan is to secure your child's future so that when the time comes to pursue higher education, the money will aid. This is what makes it essential to have a child insurance plan for your child. A child insurance plan offers goal security. 

    In case of your untimely death, the insurer ensures to pay off the remaining premiums so that the investment continues. This way your child will receive nothing less than the maturity amount you intended him/her to receive.

  3. Auto-Risk Management

    If you are planning to invest for the long-term via a child insurance plan, you are creating an opportunity for a higher growth rate with a little more risk. In other words, there is an option in a child insurance plan to allocate your investment to equity growth funds which can provide you higher growth in the long run.

    However, you require an automated portfolio strategy to manage your investments from time to time. Following are the most common automated portfolio management strategies that can help you invest smarter and eventually will save time. 

    • Systematic Transfer

      Under this option, you can systematically transfer the lump-sum investment to equity fund(s), to get rupee cost averaging.

    • Automatic Fund Rebalance

      The debt and equity ratio goes like 50:50, this means, based on the market performance of your investments, the automated rebalance management service will automatically rebalance the amount between equity and debt. 

      If for any reason, your ratio goes from 50:50 (Debt: Equity) to 40:60 (Debt: Equity), the money will automatically move from equity fund to debt fund to rebalance the entire ratio again. 

    • Safety Switch

      This option provides you to safeguard your accumulated funds during the last 4 years of your plan. Under this option, the money automatically gets transferred to debt from equity as your plan is near its maturity date. 

Final Word

When it comes to buying a child insurance plan, you must understand the importance of it. You can choose from various available child plans such as, unit-linked plans, traditional plans, etc.; however, you are required to determine how much cover your child would need in the future to accomplish certain goals. Also, to maximize your coverage, you have an option to add riders to your basic child insurance plan.

˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^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 investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++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
Insurers Offering Child Plans

Tata AIA

Aditya Birla Sun Life

Bajaj Allianz

Max Life

HDFC Life

ICICI Prudential

Bharti AXA Life

Edelweiss Life

Kotak Life

Future Generali

PNB MetLife

SBI Life

Aviva

Bandhan Life

Canara HSBC

IDBI Federal

IndiaFirst

Pramerica Life

Reliance Life

Sahara Life

Shriram Life

Star Union

View more insurers
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
HDFC Education Loan for Foreign Education

06 Feb 2025

Studying abroad offers students the chance to experience new
Read more
HDFC CSIS Scheme

06 Feb 2025

HDFC CSIS Scheme enables students from economically weaker
Read more
HDFC Educational Loan for Indian Education

06 Feb 2025

Quality education is the first step towards securing your
Read more
SBI Education Loan MITC

06 Feb 2025

The SBI Education Loan is a loan scheme that helps students
Read more
SBI Education Loan Repayment

06 Feb 2025

As a parent, you want nothing more than to give your child the
Read more
Top 12 Government Schemes for Girl Child
  • 29 Apr 2022
  • 117527
Top 12 Government Schemes for Girl Child Government schemes for the girl child are a vital aspect of social welfare
Read more
Prime Minister Schemes For Boy Child
  • 05 Apr 2022
  • 21528
The Prime Minister Schemes for Boy Child stand as an important initiative aimed at nurturing the boy child and
Read more
Ponmagan Podhuvaippu Nidhi Scheme (PPNS)
  • 24 May 2023
  • 50006
Post Office Ponmagan Podhuvaippu Nidhi scheme is a social welfare initiative introduced by the Tamil Nadu
Read more
SBI Smart Scholar Returns Calculator
  • 15 Mar 2022
  • 15991
SBI Life Smart Scholar is an insurance scheme specifically designed to address the needs of a growing children
Read more
Best Investment Plans for Girl Child in India
  • 18 Oct 2021
  • 42106
Investing in the future of a girl child is one of the most important financial decisions a parent or guardian can
Read more

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