Children Plans Growing to a New Phase

ULIPs are in their good time as the equity market is displaying double digit return of 18% in the last fiscal. Selling of ULIP plans does not satisfy the insurers. Now, the agents are catching young parents with the ULIP child plans. In traditional child plans, the general duration is of 15 years whereas after the 5 year lock-in period of ULIPs, individuals with higher risk appetite can also invest for 3 terms in ULIPs. Along with insurance, ULIPs offer participation in equity markets. If any unfortunate event occurs, the nominee is offered the sum assured and the maturity amount is paid at the time of maturity whereas, the future premiums are waived off.

Returns as high
as 7.1%^##

Includes life cover

Completely Tax free^{^}

We are rated^~

7.7 Crore

Registered Consumer

Insurance Partners

4.2 Crore

Policies Sold

In-built life cover

Get Guaranteed returns upto 7.1%* With Life Cover

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We are rated^~

7.7 Crore

Registered Consumer

Insurance Partners

4.2 Crore

Policies Sold

Disclaimer: *The Guaranteed Returns are dependent on the policy term and premium term availed along with the other variable factors. 7.1% rate of return is for an 18 years old, healthy male for a policy term of 20 years and premium term of 10 years with Rs.10,000 monthly installment premium. All plans listed here are of insurance companies’ funds.

Premium paid in child ULIPS can be used by policyholder in a SIP or a dynamic fund allocation. And, the premium paid in traditional child plans is generally invested for corpus creation and guarantee payouts in government securities. Senior director and COO of Axis Max Life Insurance, V Viswanand said investing at varied market cycles i.e. paying regular premium for a long term reduces the risk. S Sridharan of FundsIndia informed that interest rates on FDs have been 7.3% on a average in the past 13 years whereas, a traditional child plan offers 6% return.

Insureres are trying to grab more number of customers. Like- Shiksha Plus Super ULIP is launched by MaxLife for school fee support. Viswanand said, this plan further offers 10% of the sum assured along with the lumpsum benefit in case of demise of the parent. And yearly education expenses are taken care by offering maximum 10 and minimum 3 such installments.

Tarun Chugh, MD & CEO, PNB MetLife informed that the 3-4% of their product portfolio constitutes of child-linked plans. The positive outcome from the market and stable government has grown interest in ULIPs.

Child ULIPs are also offered by HDFC Life and ICICI Prudential. These plans are an important growth driver.

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

* Applicable for Titanium variant of Max Life Smart Fixed-return Digital (Premium payment of 5 years, Policy term of 10 years) and a healthy male of 18 years old paying Rs. 30,000/- monthly (exclusive of all applicable taxes)

** Fixed deposit rate applicable for 5 year's 1 day to 10 years for investment amount less< 2 Crore ( Not for senior citizens).

*** PPF interest rate applicable for 15 years for investment amount upto 1.5 Lac

+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023

#Discount offered by insurance company

## The Guaranteed Returns are dependent on the policy term and premium term availed along with the other variable factors. 7.1% rate of return is for an 18 years old, healthy male for a policy term of 20 years and premium term of 10 years with Rs.10,000 monthly installment premium. All plans listed here are of insurance companies’ funds.

~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

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Children Plans Growing to a New Phase

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