Child plans are a combination of savings and insurance plans designed to help parents secure a financial future for their children. The plan allows parents to build a strong financial corpus that can be used to meet the child’s future needs such as education, marriage, etc. So, here let’s know about the best child insurance plans in India.
What is a Child Plan?
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Child plans in India are a type of insurance that protects your savings while ensuring your child’s future. The plan allows you to invest your savings and later use it for your child’s education, either in parts or all at once.
How Does a Child Plan Work?
When you buy a child plan, you pay premiums for a selected period. This specific time period becomes your ‘policy term’ and after the policy term ends, the insurer provides the lump sum amount of your plan as the maturity benefit. You can then use this amount to cover your child’s education or wedding expenses.
If an unfortunate event happens to you during the policy term, the entire life cover amount of your plan will be given to your nominee, who is responsible for taking care of your child in the future. The insurance provider will waive off all future premium payments for the remaining policy term to ensure that your children’s future is always secure.
Why is a child plan important for you and your child?
Parents take care of everything related to their child and want to ensure that every wish of their child is looked after with zero compromise. This is where child plans come into the picture. By investing in a child education plan, you will accumulate enough funds in the times to take care of future expenses related to your child.
This is because a child education plan offers comprehensive life insurance coverage along with maturity benefits to secure the child’s future.
So, by buying a child education plan you can rest assured about the fact that even if something unfortunate happens to you and you are no longer with your family, your children’s needs will be well taken care of.
Benefits of Child Plans:
To understand the importance of child plans, let’s take a deep dive into their benefits. The list of benefits that can be derived from a child education plan can be quite long. Here we have briefly explained some of the basic benefits offered by such plans.
Build a Corpus:
It helps you create a corpus for your child’s education and helps you save enough for the future. On timely payment of premiums, the plan will provide a lump sum amount that will help the child meet educational expenses without any financial burden.
Medical Treatment:
These plans offer the facility of withdrawals during the policy term. If your child falls ill you can use this money for medical treatment.
Support the child in the absence of parents:
The death of a parent can cause severe trauma to the child and put his future in jeopardy. This plan offers a lump sum amount as promised at the time of purchase. Additionally, if the insured opts for the premium waiver rider, the company will provide a premium waiver in case of the parent’s demise during the policy term.
Income Benefit:
Some of the child plans offer regular income to children which is equal to 1% of the sum assured.
Best Child Insurance Plans in India:
Before buying a child education plan in India, it is important to consider factors such as the cost of education, inflation rate, and premium amount. Given the wide range of child education and savings plans available in the insurance market nowadays, it is natural to get confused about which one you should choose for your child.
From the results of our evaluation, we have selected the top life insurance companies in the market and listed the best 5 child plans in the table below. Let us learn about them.
LIC New Children’s Money Back Plan:
This is a non-linked, participating, individual, life assurance money-back plan designed to help customers meet the educational, marriage, and other needs of their growing children through survival benefits. LIC New Children Money Back Plan also provides the death benefit of the insured person to its beneficiary during the policy term, provided the policy is in force.
Eligibility Criteria:
Entry Age: 0 years – 12 years
Maturity Age: 25 years
Premium Payment Mode: Monthly, Quarterly, Half-Yearly, Yearly
HDFC Life YoungStar Udaan:
This is a participating endowment and money-back plan that is ideal for parents who want to make provisions to meet their child’s future financial needs. The plan comes with 3 maturity benefit options along with a classic waiver option that allows customers to match the key milestones of their child’s aspirations.
Eligibility Criteria:
Entry Age: 30 days 60 years
Maturity Age: 18 years 75 years
Premium Payment Mode: Monthly, Quarterly, Half-Yearly, Yearly
SBI Life – Smart Champ Insurance:
SBI Life Smart Champ Insurance is an individual, non-linked, participating, life insurance savings product that helps customers meet their child’s future educational needs. Apart from life cover, this plan offers coverage against life and accidental total permanent disability during the policy term.
Eligibility Criteria:
Entry Age (of child): 0 years 13 years
Maturity Age (of life assured): 42 years 70 years
Premium Payment Mode: Monthly, Quarterly, Half-Yearly, Yearly
ICICI Pru Smart Kid Solution:
Smart Kid Solution is a unit-linked insurance plan offered by ICICI Prudential Life Insurance Company, with one of the best-seller plans being ICICI Pru Smart Life. This plan is designed to help parent customers grow their investments and helps them secure the educational milestones of their children.
Eligibility Criteria:
Entry Age: 20 years 54 years
Maturity Age: 30 years 64 years
Premium Payment Mode: Yearly, Half-Yearly and Monthly
Max Life Future Genius Education Plan:
Future Genius Education Plan has been carefully designed by Max Life Insurance Company to help customers manage their child’s higher education cost through disciplined savings. The plan comes with guaranteed money back, maturity benefit, death benefit, premium waiver benefit, and many other useful benefits.
Eligibility Criteria:
Entry Age (of child): 21 years 45 years
Maturity Age (of life assured): 66 years
Premium Payment Mode: Monthly, Quarterly, Half-Yearly, Yearly
Conclusion:
As a parent, your first and foremost duty lies in securing your child’s future. To ensure that your child has a bright future and lives the life of their dreams, it is important to start investing in a child plan at an early stage.