Handy Guide on Child Plans

As a parent, everybody wants a secured life and the best education for their children. But with  skyrocketing education costs and expensive lifestyles, planning can be the only solution for the future of your children. A good monetary planning starting since the birth of your child will definitely be a success path that will lead towards financial freedom in your life. Various investment instruments are available in the market that include mutual funds, public provident funds, real estate investment options, shares, gold and bank deposit options.

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

However, to save funds using these self-funded options, it is essential for an individual to be alive and keep investing regularly. In case of unfortunate demise of an investor, the funding will be stopped and the plan closes with no benefits utilized. Investing in a child plan can be a good idea since  Child plans  are self-funded investment options with the benefit of  the insurer taking  up the future payment options of the plan in case of the policyholder’s demise. In case of a parent’s demise, child plans have the flexibility to continue with the insurance company waiving off the balance premium and maintaining the plan until the child turn major.

Detailed below is an understanding of a child plan:

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

Concept of child plans

Bringing up a child in today’s environment is challenging in all fronts, be it mentally, physically or monetarily. Child insurance plans are basically crafted to cater to the future monetary needs of your child. Children require monetary support in major milestone points in their life. A good child plan specific to a common and important milestone in a child’s life will be a good decision.  Child plans are available specifically for higher education, setting up a business, or marriage. Buying child plan for specific needs ensures that your child receives the payouts from such policies at the time of need even in your absence. Moreover, it is an investment made only for child's needs in future and the present day expenses need not be forbidden.

These plans enable regular saving for your child with a guarantee of funding your child’s needs if something unfortunate happens to you. Child plans  plan pay out the decided sum to the child at the decided age even after the investor’s demise.

Distinctiveness of child plans

Child plans are different from other investment instruments because of their premium waiver feature. In general, the nominee in a child plan, the child  receives two payouts from the insurer in case of the policyholder’s  who is the parent or the guardain’s  death. The first payout is received immediately after the demise of the parent or the guardian in the policy and the second payout is received by the child at the close of the plan or when the child turns major, all depending on the child plan policy construction. Child plans do not  terminate like  other insurance policies. Additionally, some child plans also facilitate fixed payouts to the child at  different life stages. However, in case of the policyholder’s survival the sum assured along with bonus is given to the child in the form of survival benefit.

An important criteria in availing a child plan is to read the policy document thoroughly before commencing on the policy.

Kinds of child plans

Child insurance plans can either be ULIPs or endowment plans. Endowment plans offer with-profit returns or returns along with bonus. Therefore, the returns from these kinds of plans mainly depend on the surplus and the profits generated by the insurance company.

If taking risks through equity exposure does not suit your risk appetite while you are planning for your child, then endowment plans with bonus options would be suitable for you. However, if your risk-bearing ability is high and you are looking for better returns, then ULIPs are the best options for you. The money you pay as premiums towards ULIPs is invested in equity funds and this it can prove to be a great investment  for your child  years down the line. It’s a known concept that equities perform better in the long run than any other assets.

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.