Top Child Insurance Plans to Secure Child’s Future

Top 3 Pocket-friendly Child Insurance Plans to Secure Child’s Future

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Purchasing a child insurance plan is the best way to secure your child’s future and manage their financial needs.  As a long-term investment, one can slowly build the corpus along with the current savings and ensure the future of the child. One of the major benefits of investing in a child plan is that it offers flexible payout options. Moreover, the plan provides a continuous flow of money in the absence of the parents. A child insurance plan not only provides financial security to the children but also provides them health coverage.

In today’s time with the growing awareness among parents, the popularity of child insurance is growing rapidly as well. According to your own needs and suitability, you can choose from the wide range of child insurance plans offered by insurers. Although people understand the significance of investing in child plan , what confuses them is the choice of plan offered in the market.

So, in order to clear your confusion, we have listed 3 best child insurance plans to secure your child’s future with. Now, let’s highlight the plans one by one below:

Bajaj Allianz Young Assure Plan

Bajaj Allianz Young Assure Plan is an endowment plan that secures the future of the child and ensures the adequate flow of cash during the important events of your child’s life like higher education, marriage, etc. The Bajaj Allianz Young Assure plan provides add-on benefits like accidental permanent total disability rider.

The eligibility criteria of the plan are described below in a tabular form.

Sum Assured

10 times of the yearly premium

Entry Age

18-50  years

Maturity Age if the life Assured

28-60 years

Premium Paying Term

Varies according to the tenure of the policy, age, etc

Premium Amount

Based on Maturity Benefit, entry age, policy term and premium payment term

 

Benefits offered by the plan-

Death Benefit- In case of unfortunate death of the policyholder during the tenure of the policy, the beneficiary of the policy receives the death benefit as the sum assured amount, which is 105% of the total premium paid till demise. 

Maturity Benefit- If the policyholder survives the entire tenure of the policy, then a maturity benefit as the sum of the guaranteed maturity benefit+ vested bonus+ interim bonus is paid after the completion of the policy tenure. According to your own choice, you can either go for three cash installments or can choose cash in benefit in one go.

Accidental Permanent Total Disability Benefit-

In case of accidental permanent total disability of the insured person, the policy continues to collect any guaranteed additional and vested bonus.

Income Tax Benefits- The policy provides income tax benefits as per sections 80C and 10(10D) of Income Tax Act.

LIC New Children’s Money Back Plan

LIC New Children’s Money Back Plan in a non-linked with-profit regular premium payment policy, which provides financial security to the child so that he/she can fulfill the important milestones of life like education, marriage, and other needs through survival benefits received from the policy. The LIC New Children’s Money Back plan also provides risk coverage to the insured child.

For the knowledge of our customers here we have listed the eligibility conditions of the plan in a tabular form.

Minimum Sum Assured

Rs1,00,000

Maximum Sum Assured

No Limit

Entry Age

0-12 years

Maximum Maturity Age if the life Assured

25 years

Premium Paying Term

25 years

Minimum Premium Amount

24,000

Maximum Premium Amount

No Limits

 

Benefits offered by the plan:

Death Benefit-

  • In case of demise of the life assured, before the date of commencement of risk, the premium amount excluding the extra premium, taxes and rider premium (if any) is payable to the beneficiary of the policy.
  • In case of demise of the life assured, after the date of commencement of risk, the sum assured amount + reversionary bonus + final additional bonus is paid to the beneficiary of the policy.

Maturity Benefit-

If the life insured survives the whole tenure of the policy, then the sum assured on maturity i.e. 40% of the basic sum assured + simple reversionary bonus+ final additional bonus( if any) is payable after the maturity of the policy.

Survival Benefits-

Survival benefits as 20% of the basic sum assured is payable in equal intervals of time i.e. after the completion of age 18 years, 20 years and 22 years, provided the policy is in full force.

Income Tax Benefits: The policy provides income tax benefits as per sections 80C and 10(10D).

Kotak Headstart Child Assure Plan

Kotak Headstart Child Assure Plan is a unit linked child insurance plan that provides financial assistance to the children and protect their future in case of untimely death of the parents.

Below we have shown the eligibility criteria of the plan in tabular form:

Sum Assured

10 times or 7 times of the yearly premium

Entry Age

18-60  years

Maturity Age if the life Assured

28-70 years

Premium Paying Term

Equal to the tenure of the policy i.e. 5 years or 10 years

Minimum Premium Amount

Regular Pay- Rs20,000

5 pay – Rs50,000

10 pay- Rs20,000

Maximum Premium Amount

No Limits

 

Benefits offered by Kotak Headstart Child Assure Plan are as follows-

Death Benefit-

If the insured person dies during the tenure of the policy, then the death benefit is paid to the nominee of the policy i.e. the child as the sum assured amount, which is 105% of the total premium paid till demise. 

Maturity Benefit- If the insured person survives the whole tenure of the policy, then the maturity benefit, i.e. the total sum assured amount + reversionary bonus + final additional bonus is paid after the completion of the whole tenure of the policy.

Income Tax Benefits: The policy provides income tax benefits as per sections 80C and 10(10D).

The above-mentioned details briefly describe the three types of child insurance plans i.e. the traditional life insurance plan, money back endowment plan and unit linked plan. Each plan has its own silent features. In order to choose the most beneficial plan to ensure the security of your child’s future, you can compare the quotes online and choose the most economical plan which includes maximum benefits.

The joy of upbringing a child comes with a great sense of responsibility. So, the earlier you start planning for your child’s future, the more successful you will be in delivering them a brighter tomorrow. Undoubtedly, having a child insurance plan is the best way to secure your child’s future.

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