Child insurance helps a parent secure the future of their children. The proceeds from a child policy can help your girl child fund her dreams and achieve her goals. Therefore, every parent should make child insurance a part of their financial decision-making. Women have been making big strides in every field globally. They deserve every opportunity to excel in life both professionally and personally.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*
In the early stages, they need the support of their parents or guardians to finance their education to enable them to achieve financial independence later. Girl child insurance plans allow parents to secure the finances for the child to deal with unforeseen unfortunate circumstances later in life.
A girl child insurance plan is a type of policy that covers the risk of death of the girl child. Further, it offers financial assistance to the children if their parents die within the policy term. A noteworthy feature is the premium waiver benefit that comes with child plans. This feature waives off future premiums payable while keeping the policy in force. So, for instance, if the parent dies due to an accident, the unpaid premiums will be paid off by the insurer. The policy continues till the end of the policy term and the final amount is offered to the child as promised.
The cost of education is growing and should not come in the way of your child’s progress. While small monthly savings are important, it cannot protect you against inflation. Child plans can help you offset this concern and also shield your daughter from financial struggle while growing up. Here are some of the few reasons why insurance for your girl child is so important.
Inflation in the education sector stands at around 10% in India. At this rate, a typical engineering degree in the next 15 years can cost you around Rs. 42 Lakhs. Do you think that regular savings can help you pay such a huge amount considering that there will be other significant expenses in the future? A girl child insurance plan can cover around 10 times the amount paid as annual premium. If you plan this well, you can negate the inflation rate and comfortably pay off your child’s tuition fees.
Growing up, many young women have the fairytale wedding of their dreams already planned. While this should not be a priority, it can certainly help to plan ahead and give them the wedding they desire. Marriage being the biggest business in the country right now, you can expect to shell out anywhere between Rs. 20-25 Lakhs including the cost of venue, decor, and gold jewelry. By investing in a child insurance policy for your daughter, you can ensure a sizeable corpus to fund their wedding.
The best child insurance plans offer the death benefit amount to the child on the death of an earning parent. Child investment cum insurance policies are designed to offer financial respite to the kids while keeping the policy in force. This ensures that the money keeps accumulating till the end of the policy term without the kid having to pay premiums. The final fund value can eleviate significant hardship on the girl child if the parent were to die within the policy term.
Parents can purchase the following sorts of insurance coverage for their daughters.
Term insurance - It is a form of pure-risk life insurance policy that provides a guaranteed death benefit to the family of the dead life assured. Your daughter can be listed as a policy nominee, ensuring that the death benefit goes solely to her and for her benefit. If the child is under the age of 18 at the time of your death, you can appoint an adult to manage the fund until the child reaches that age.
Notably, term life policies now include a return of premium benefit at maturity. It means that you won't lose any of the money you put into the policy if you live to the end of the policy term.
Child Endowment-based plans - The rising cost of education, from higher education to studies abroad, should not stop your child from receiving the best education possible while you are away. Also categorized as basic child education plans, this type of insurance coverage hepls pay for your daughter's education and keep it going until she reaches financial independence.
The government of India has introduced programmes such as the Sukanya Samriddhi Yojana for females, which has gotten a lot of attention in the previous decade. In the event of unforeseen events, child education plans can offer additional assistance to the girl child in overcoming financial constraints.
Child ULIPs - A ULIP is one of the greatest insurance policies for a girl child. These are unit-linked insurance plans, which means that a portion of the premiums is invested in market instruments like stocks, bonds, and other securities. The remaining portion is allocated to the insurance protection feature. The ULIP component ensures that a parent's money rises significantly based on the fund's market performance. On the date of maturity, the collected fund value is paid out to the girl child.
The insurance component ensures that even if a parent dies during the policy term, the money is invested so that the child can access the entire corpus later, and in some situations, it also waives future premiums.
Traditional Money-Back Plans - If you have a budget for your child's expenses, these options are ideal. These are endowment-based plans that pay out at predetermined times. You may plan every stage of your child's future based on the predicted returns from these policies, whether it be schooling, college, or international study.
The number of options available can be very confusing for a parent. However, choosing the best child plan for your daughter need not be as complicated. All you have to focus on are a few fundamental factors. Here are some tips to pick the best investment plans for your girl child:
Decide the budget - Do not go overboard with the budget that you have decided to pay for premiums. The end goal is that the promised benefits should reach the child at important milestones and paying premiums duly is a key aspect of it.
Factor in inflation - The current inflation in the education sector is 10%. Pick a cover that enable your to beat the inflation and comfortable pay for your daughter’s pursuits.
Take balanced risks - Sticking to traditional child savings plans may seem like a good idea, however, the rate of return is significantly lower. A high corpus requires you to invest in ULIPs that diversifies your investment portfolio among high-risk equity market and low-risk debt funds.
Identify child needs - Once you have decided on a budget and an investment strategy, look where your child’s interests lie. It is advisable to save for a corpus to that is high enough to accommodate any pursuit, be it international or local. However, certain technical fields such as engineering and medicine incur larger expenses that vocational fields.
Cover against your death - The most critical part of this whole exercise is to make sure that your child is financially secure should any misfortune were to befall them. The insurance cover should be enough to take care of the needs of the family and also cover educational expenses of the girl child.
|Child Plans||Type||Entry Age||Maximum Maturity Age||Minimum Annual Premium||Minimum Sum assured|
|ICICI Pru SmartKid Plan||ULIP||20-54 years||NA||Rs. 45,000/-||Higher of (10 x Annual Premium) or (0.5 x Policy term x A.P)|
|HDFC SL YoungStar Super Premium||ULIP||18-65 years||75 years||Rs. 15,000/-||10 X annualized premium|
|Aviva Young Scholar Secure Plan||Child Education Plan||Parent: 21-50 years
Child: 0-12 years
|60 years||Rs. 50,000/-||10 X annual premium|
|Bajaj Allianz Young Assure||Traditional Savings Plan||18-50 years||60 years||N/A||10 X Annualized premium|
|Bharti AXA Life Child Advantage Plan||Money-back||18-55 years||76 years||Depends on Minimum Sum Assured||Rs. 25,000/-|
|Future Generali Assured Education Plan||Child Education Plan||Parent: 21-50 years
Child: 0-10 years
|67 years||Rs. 20,000/-||N/A|
|Birla Sun Life Insurance Vision Star Plus||Money-back||18-55years||75 years||N/A||Rs. 1 Lakh|
|Exide Life New Creating Life Insurance Plus||Child Savings Plan||Parent: 18-45 years
Child: 0-17 years
|60 years||Rs. 25,000/-||Rs. 1,62,380|
|SBI Life Smart Scholar||ULIP||Parent: 18-57 years
Child: 0-17 years
|65 Years||Rs. 24,000/-||Higher of (10 x Annual Premium) or (0.5 x Policy term x A.P)|
|Max Life Shiksha Plus Super||ULIP||21-50 years||65 years||Rs. 25,000/-||Rs. 2.5 Lakh|
|SBI Life Smart Champ Insurance Plan||Child Savings Plan||Parent: 21-50 years
Child: 0-13 years
|70 years||Rs. 6,000/-||Rs. 1 Lakh|
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