To secure a child's future, a well-informed parent ensures comprehensive financial planning starting from an early age only. Investing in the right child insurance plan as per the requirements of your child's goal is a crucial step in deciding the direction of their future. As the child entry age criteria changes per policy, let us look at a few of the best child insurance policies and the best age to buy them.
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Create wealth for child’s aspirations
Tax Free maturity amount+
12+ plans available
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
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*
A Child Insurance Plan is one of the best life insurance investments a parent can buy for their child to financially secure their future even in the case of their absence. These child plans fulfill the purpose of both life insurance coverage and investment products. It allows them to build a steady corpus and receive flexible payouts during the major milestones of their lives, like higher education, competitive exam preparation, and marriage.
To ensure the wholesome future of your child, insurance companies start offering Child Plans from the time your child is born. But is there a limit to the child's age up to which a parent can buy these plans?
Financial experts recommend that starting a Child Insurance Plan as early as possible is always better to save large of the premium costs and earn a big corpus on maturity. But this plan can be bought for children within a certain age limit, after which they can be covered under other life insurance plans. Generally, the maximum age of a child to buy a child plan may go up to 18-25 years of age, depending on the company policies, after which the insurance coverage puts into effect.
Have a look at the following curated list for the age eligibility criteria for the best child insurance plans:
Child Plan | Entry Age Limit | Maturity Age Limit | Sum Assured* |
Bajaj Allianz Young Assure | 18-50 years | 28–60 years | 10 times of annualized premium amounts |
Exide Life Wealth Maxima-Maxima Child | 18-50 years | 65 years | 7-10 times of annualized premium |
HDFC SL YoungStar Super Premium | 18-65 years | 75 years | 10 times of annual premiums |
ICICI Pru SmartKid Assure Plan | 20-54 years | 30-64 years | Based on the premium payment term selected |
MAX Life Shiksha Plus Super | 21-50 years | 65 years | As per the premium payment term chosen |
PNB Metlife College Plan | 20-45 years | 69 years | Rs. 2,15,000 to Rs. 5 crores |
Reliance Child Plan | 20–60 years | 30–70 years | Equal to the policy amount |
SBI Life Smart Champ Insurance Plan | 21-50 years | 42-70 years | Rs. 1 lakh to Rs. 1 crore |
TATA AIA Life Insurance Super Achiever Plan | 25–50 years | 70 years | 10 times the annual premiums |
Canara HSBC Smart Future Income Plan | 18-55 years | 43-80 years | Up to 100 times your monthly income |
*excluding extra premiums, rider premiums, GST, policy charges, and more.
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.
Let us go through the benefits a parent will gain by subscribing to a Child Insurance Plan.
Inflation-adjusted and well-accumulated child plan investments could be used to secure your child's higher education expenses over a period of time.
The investment under the child plan can also be utilized for coaching fees and other important events like marriage.
A parent can claim tax deductions for a Child Insurance plan under Section 80C of the Income Tax Act of 1961.
Section 10(D) of the IT Act also allows for tax exemption claims after the child plan returns have matured.
If the total premiums paid, do not exceed 1/10th of the basic sum assured, then the interest gained on the securities investment is likewise excluded from tax.
Apart from the features like tax exemption and education funding, the Child Insurance Plan also offers the flexibility to withdraw from the sum assured partially. In emergency situations like severe medical conditions, this helps ease the financial burden.
This plan is for children who start earning at an early age, like child actors, musicians, and sports players. They can utilize this plan to protect their income and appreciate their capital investment over the long term.
In case the child needs a loan for higher education or other related borrowings, they can keep the Child Plan amounts as collateral.
In the absence of parents, a child may face financial difficulties with their daily living expenses. If the policyholder passes away before the policy term matures, the child plan allows a rider premium in which a lump sum amount of the total accumulated funds is paid to the child. In this scenario, the policy doesn't lapse or end, and the insurer is allowed to continue to pay the rest of the premiums in continuation of the plan.
With some extra premium payments, rider benefits can be availed under the child plan. In the event of the policyholder's sudden demise or critical illness, extra benefits are made available to the child. The benefits like income benefits, premium waiver benefits, permanent disability benefits, critical illness benefits, accidental death benefits, and more are included in such plans.
It may be noted that different child insurance plans impose different age eligibility conditions. So, a parent must ensure that they check these criteria and compare the advantages well before deciding to subscribe to any particular policy.
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