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Why Child Plan is Important 

Pension plans have been around for decades in the market. They have secured the future of many adults as they edged closer to their sunset years. However, even though a child’s future is always considered to be certain and safe in the presence of her/his guardian or parents; s/he could face a lot of troubles in their absence.

To avoid this unpleasant scenario, investing in a child plan becomes a must, as it not only helps your child fulfill her/his dreams but also lets her/him overcome any obstacles in their life, in your absence. In case of the sudden death of their guardian, a child plan will ensure that the children will receive financial support until they are legally recognized as adults.

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

Types of child plans 

There are different types of child plans to opt from. You can choose any of them, depending on your requirement criteria and the amount of security you seek for your younger ones. Following are the different types of child plans:

Child insurance plan 

This type of child plan is provided by insurance firms in the country. They come with both insurance and investment elements for the policy. You, as the guardian or parent, can plan out the dates and amount for future payments to your child.

The child insurance plan is further divided into sub categories of: Regular Premium Plan and Single Premium Plan. 

Regular Premium Plan

This is a type of child insurance plan where the premiums are paid until the child attains 18 years of age. The insurance firm, thereafter, repays the recipient the deposited amount in the coming years.

In cases where the parent dies before the policy attains maturity, the child gets an assured sum only after attaining the age of 18 years. 

Single Premium Plan

For a Single Premium Plan, an assured amount is given when the policy reaches its maturity. 

Unit-linked Child Plans (ULIPS) 

These come with great returns and have the following advantages:

  • Flexibility of withdrawal alternatives.
  • Suitable cover.
  • High returns.
  • Value appreciates with time. 

Money back plans

Money back plans can be used as child plans as they come with efficient planning alternatives. They cater to the individuals’ needs for future expenses. They also have regular income options as well. 

Endowment plans

They incorporate elements of both investment as well as insurance plans. The investment elements are activated after you have been covered for a given period of time as stated in the policy. You are also guaranteed an amount at the end of the endowment period. This makes it an excellent saving tool for your child’s secure future. 

Benefits of Child Plan: 

There are several benefits that come along with a child plan. At the end of the policy, the child may also become the policyholder of the same plan. Here is why you should go for the child plan: 

  • Provision of school fees.

The insurance firm pays the fees up to a certain amount for the child. This is provided after the death of the parent or guardian, who was providing the school essentials for the child. The amount is given out at certain rates, considering other needs of the child. 

  • Funding the child’s interests.

If a child is passionate about her/his hobbies, he or she is encouraged to pursue it till the end. Sometimes, it may so happen that these interests could prove to be costly and hence, your kid has to give up on her/his passion. By investing in a child plan, you get the much needed support from your insurance provider. 

  • Wedding expenses.

Some parents go to extreme lengths to ensure that their children have the wedding of their dreams. With a child plan, once your kids reach a marriageable age, the wedding expenses are met by the policy provider. In fact, the costs are sufficiently met with the funds assigned for the big day. 

  • Meeting the unstable market.

By investing in a child plan, you will make good use of your money through timely investments. This, in the long run, will bring high returns, which will be of more use to your child. The value appreciation will ensure that your returns are higher than what you invested. 

  • Higher learning

In instances where the child pursues higher education, the firm can provide fees for the child to broaden his or her horizons in the subject of their choice. At this point, many parents could be unable to chip in since higher education can be exorbitantly expensive. Therefore, with a child plan, your child will still have the resources to pursue a career of their choosing.

Read more: Sukanya Samriddhi Yojana


A child plan is essentially meant for the betterment of your kids and you would definitely not want to spoil the chances of your kid making it big in the future. Thus, make sure to double-check every detail and choose a trustworthy brand before investing your hard-earned money in a child plan.

Written By: PolicyBazaar - Updated: 17 August 2020
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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