Premium Waiver Benefit

In a child plan, the premium waiver benefit plays a crucial role in reducing the financial burden following the death of a parent. It waives off the future premiums payable against an insurance policy while keeping all the assured benefits intact.

Read more
Best Child Saving Plans
  • Insurer pays your premiums in your absence

  • Invest ₹10k/month and your child gets ₹1 Cr tax free*

  • Save upto ₹46,800 in tax under Section 80(C)

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Nothing Is More Important Than Securing Your Child's Future

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

View Plans
Please wait. We Are Processing..
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 Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

Why do you need to buy Child Education Plans?

When a child is born, financial planning becomes very important for a parent. Not only do you have to feed and house your child but also secure their future should anything bad happen to you. Further, inflation in the education sector is only making matters worse. 

Child education plans can help you overcome many challenges and plan your child’s future without burning a hole in your pocket. 

Here is how child plans can help you.

  • These offer combined benefits of insurance protection, savings, and investment. 

  • It offers financial assistance to the child after your death. 

  • It lets you create a corpus big enough to finance expensive higher education. 

  • The insurer pays future premiums on the death of a parent if the premium waiver benefit is opted for. 

  • You can save on taxes per the prevailing tax laws in the country.

  • Child ULIPs let you participate in market-linked funds and earn high returns.

The best child insurance plans offer a combination of all these benefits to ensure comprehensive financial protection to the child in your absence or otherwise. 

Here is a rundown of the premium waiver feature in a child plan and its significance.  

What is the Premium Waiver Benefit in a child plan?

The premium waiver benefit makes the insurer liable to pay the due premiums on the death of an earning member. The child is now rid of the burden to pay premiums and enjoys uninterrupted benefits that come with the policy. 

Key Features of the Premium Waiver Benefit

  • There is no limit to the premium amount being waived off. 

  • Most child ULIPs come with an in-built premium waiver benefit. 

  • Most traditional endowment plans offer this benefit as riders on paying an extra sum. 

  • The rider is activated on the diagnosis of a critical illness, or accidental disability and death. 

How does Premium Waiver benefit you?

  • It allows premiums to stay invested for a longer term to generate higher returns. 

  • It does not jeopardize the original benefits that your child is entitled to. 

  • It eliminates the burden of premium payment in case of loss of income resulting from total / permanent disability, critical illnesses, and the death of the parent. 

  • It helps you save on taxes as the premiums are eligible for tax deductions under section 80C of the Income Tax Act, 1969. 

How does the Premium Waiver Benefit work? 

Let’s understand this with the example of a child ULIP.

Such plans come with two components - insurance protection and investment in market-linked funds. The premium amount is usually distributed towards each as per your need. 

The returns based on the market performance of the funds accumulate and are offered to the child on maturity. The insurance component offers financial compensation to the child on your untimely demise within the coverage period. 

In the case of a normal insurance policy, as soon as the death benefit is paid out, the policy ceases. However, in child investment plans, the investment component continues to accrue returns till maturity but the burden of premium payment shifts to the insurer. This is made possible by the premium waiver benefit. This allows a significant corpus to be built for the child despite the absence of an earning member. 

Summing Up!

Child education plans are important to secure your child’s future till they are financially independent. Riders such as premium waivers offer extra protection by eliminating premium payments for grieving families. The benefits assured to the child continue as the policy progresses till the date of maturity. It is advisable to buy plans that offer this benefit as an extra layer to the financial safety net that you’re creating for your child.

Child Plan1
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Child Plan3
Child Plan4

Nothing is more important than securing your child's future

  • Life Cover paid to family to meet immediate expense
  • Future premiums are paid by the Insurance Company

Child plans articles

Recent Articles
Popular Articles
Bharti AXA Life Shining Stars Calculator - Child Plan Calculator

05 Aug 2022

This child plan by Bharti AXA is designed to help parents save...
Read more
What is the Deferment Period Under a Child Plan?

04 Aug 2022

A child insurance plan is one of the most recommended ways to...
Read more
How to Choose An Insurance Plan for Child?

04 Aug 2022

The biggest aim of any parent is to provide their child with a...
Read more
LIC Children's Deferred Endowment Assurance Plan

04 Aug 2022

The plan is no longer offered by LIC. The company introduced the...
Read more
Which Companies Offer 4 Child Benefits?

04 Aug 2022

If you are a parent, you are probably looking for a complete...
Read more
Best Child Investment Plans to Invest in 2022
Planning for the child’s secured future is not an easy task. Most of the people try to create a strong financial...
Read more
Prime Minister Schemes For Boy Child
Like the Prime Minister’s Sukanya Samriddhi Yojana savings scheme for a girl child, there are several...
Read more
Best Investment Plans for Girl Child in India
The right kind of investment of your hard-earned money is necessary, but when it comes to your child, making...
Read more
Best Child Insurance Plans
A child insurance plan is a combination of savings and insurance, which help the individuals to plan for the...
Read more
Post Office Child Plans
Individuals can open post office savings account for their children and earn interest at a rate of 4% to nearly...
Read more

Download the Policybazaar app
to manage all your insurance needs.