If you are a parent, you are probably looking for a complete package for your children. Given the range of child plans in the market, it may not be possible for parents to research all of these. To make things easy, the article discusses the four core benefits to look for in a child plan and which companies offer these 4 child benefits.Read more
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*
Today, parents don’t buy child plans just for insurance protection alone. They look for policies offering a combination of a life cover, wealth creation, savings, income, etc. The good news is that there are ample options for you to explore. Insurance companies are introducing more and more benefits for children to cover them in case of emergencies like the death of a parent.
The usual expectation out of a child insurance plan is securing the financial future of children in the absence of a parent. Now to choose the best child insurance plan for your kids, you must look for the following 4 child benefits on your death -
Immediate sum assured payable to the child
Future premiums waived off while the policy continues
Final fund value with accumulated market returns payable to the child at maturity
Additional family income benefit payable monthly
These core benefits are enough for the child to complete their education, pursue their dreams, and sustain their lifestyle. You can rest easy knowing that your child is not struggling to make ends meet in your absence.
Read along to find out which companies offer these 4 child benefits with their child plans.
|Insurance Company||Name of Child Plan||Type of Plan||Extra Benefits|
|Bajaj Allianz||Bajaj Allianz Life
Smart Wealth Goal -
Child Wealth Variant
|Unit-linked Insurance Plan||Income benefit, partial withdrawal, amount invested returned on maturity|
|Max Life||Max Life Online Savings Plan - Child Solution||Unit-linked Insurance Plan||Multiple withdrawals, 100% of the invested amount returned, choice of investment strategies|
Disclaimer: Policybazaar does not rate, endorse or recommend any specific insurance provider or insurance product offered by any insurer.
In addition to the core benefits of the plans discussed above, there are some extra benefits that parents can enjoy. Some of these are -
Market-linked returns - The unit-linked nature of these child plans means that the money that you invest goes towards the equity market. This has the potential to increase your wealth through high returns as per market performance.
Flexibility investment options - You have the opportunity to choose where and how you wish to invest your money in the funds. You can also make changes if you find that your choice of funds is not performing well.
Tax benefits - Insurance plans come with tax benefits on the premiums paid by you and the benefits received. These tax exemptions are subject to change as per prevailing tax laws in the country.
Partial withdrawals - There may be times during the policy term when you find yourself in need of some money. For your benefit, companies offering 4 child benefits allow investors to withdraw some percentage from the accumulated fund value at such times.
Child plans offer you an opportunity to save regularly and grow a corpus for your child’s future. The four benefits including the life cover, premium waiver, monthly income, and maturity benefit are the most important. You can buy any of these plans at Policybazaar and pay absolutely no commission. This also gives you scope to compare different options so that you can make the best decision for your child.
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