Why Invest in Child Insurance Policy?

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5 min read

Updated on Sep 26, 2022

In today’s competitive age, securing your child’s future is very important, especially with financial security. And the best way to do so is through child insurance plans. One such plan that provides dual benefits is the life insurance policy for your child. With this plan you get double the benefit of insurance as well as investment. This plan helps through the numerous milestones in your child’s life by covering him/her throughout his young years. Also, once the policy matures, the earnings from the policy can be used to fulfill any important financial needs of the child.

Now, when you plan to buy an insurance policy for your child, you would realize that when it comes to buying an insurance the most difficult part is to choose the best policy for your child. The market is full of a wide range of plans with different benefits and advantages that you can read and compare before opting for the right one.

However, it is very likely for parents to get confused about which plan to opt for your child. If you are one such parent, we are giving you a brief on some of the best child plans to help you make the right choice. Let us start with the importance of a child insurance plan.

Why is a child insurance plan important?

Most people have this perception that investing money in a child plan is not that fruitful. However, this is a misconception as a child plan serves as a significant financial medium to construct a bright future for your baby. A child plan considers all the important aspects of a child’s future that might require the parents to spend a substantial sum of money, and thus presents comprehensive benefits to the child.

Having a child plan that covers the future costs like education as well as covering him/her in the event of any mishap, you can secure the child’s future. Further, with the rise in inflation and education costs becoming all the more expensive, having a good coverage for your child’s life is essential. Moreover, no one can predict the future or what uncertainties are in store for you, so with a good child insurance coverage, you can ensure that your child doesn’t suffer after you are gone. This is because in case of child insurance, the policy provider continues paying the premium for the plan on behalf of the policy holder in case of his/her untimely demise.

Best Child Insurance Plans in India in 2022

Here we are giving you a list of some of the best child insurance plans that you can choose for your child.

1. Aegon Life Rising Star Insurance plan

Being a unit linked insurance plan, the Aegon Life Rising Star Policy offers an amalgamation of investment and insurance payout. Not just this plan provide financial security to the child in case of emergency, it also provides a monetary cushion to cater to his/her future needs.

Features: 

  • Offer regular payment of premium option
  • Includes the benefit of inbuilt premium waiver
  • Offers premium waiver on income benefit
  • Presents 4 varied fund choices for investment

Benefits:

  • Provides triple advantage cover till the child attains the age of 25 years
  •  Offer multiple fund choices
  • Offer liquidity on partial withdrawal after 5 years
  • Offer tax benefits
  • Can enhance coverage during the tenure

 

2. Aviva Young Scholar Advantage Plan

This plan presents complete protection to your child by catering to his/her financial needs. This is a unit link policy with a non-participation option.

Features:

  • Offer comprehensive insurance cover
  • Offer waiver on premiums in case of demise of parents
  • Presents the option of add-on premium payment as top-up
  • Presents 7 varied fund choices for investment

Benefits:

  • Offer maturity benefits equivalent to the value of policy fund
  • Partial withdrawal facility opens after 5 years of the policy
  • Tax benefits

 

3. Bajaj Allianz Young Assure

This is a conventional savings plan offering financial security and life cover benefits.

Features:

  • Minimum entry age – 18;  maximum entry age – 50
  • Maximum maturity age – 60
  • Offer options of premium payment
  • Offer premium rebate option

Benefits:

  • Provide maturity benefits along with assured additions
  • Presents terminal bonus and vested bonus facility on maturity
  •  Maturity benefits on milestones of the child at different years of the policy
  • Tax benefits and rider benefits

 

4. Bharti Axa Life Child Advantage Plan

This is again a participating non-linked plan with options of money back/endowment choices.

Features:

  • Entry age min. – 18, max. entry age – 55
  • Max. maturity age – 76
  • Offer choices of opting different policy tenure
  • Option of opting policy term between – 11 yrs to 21 yrs

Benefits:

  • Maturity benefits option of either money back or endowment
  • Benefit of premium waiver
  • Tax Benefits

 

5. Birla Sunlife Vision Star Plus Insurance

This is another traditional plan of insurance offering regular payouts and financial security.

Features:

  • Have the option to select sum assured as per requirement
  • Can opt for the premium paying term as per choice from either 5 yrs. to 12 yrs.
  • Offer 2 payout options
  • Can take loan against policy
  • Can pay premium annually, quarterly, six-monthly or monthly

Benefits:

  • Nominee receives death benefit in the event of demise of the policy owner
  • Premium waiver option is also available in case the policy owner dies
  • Can receive accrued benefit on maturity
  • Policy doesn’t lapse if premium discontinues
  • Tax benefits available

 

Here are some other best policies for your child you can buy in 2022:

  • Exide Life Mera Ashirwad Plan
  • Future Generali Assured Education Plan
  • HDFC SL Youngstar Super Premium Plan
  • ICICI Pru Smart Kid Assure Plan
  • Kotak Head Start Child Assure Plan
  • Max Life Siksha Plus Super
  • Reliance Nippon Life Child Plan
  • SBI Life Smart Champ Insurance Plan

Benefits of investing in a Child Insurance plan

Here are some of the best advantages of getting an investment done of a child policy:

  • They offer flexibility in terms of customized pay-outs.
  • These plans are so designed to cater to the welfare of your child so that you don’t have to worry about any of the important expenses of your child.
  • These plans offer the option of having riders or add-on covers on your child’s insurance plan.
  • The rider facility can be availed at nominal charges.
  • With a customized and best policy for child, you can help fulfill the dreams of your child.

To Conclude

Now you know about the implications of securing your child’s future with an insurance plan and the benefits that you and your child can accrue out of it. Hence, you must grab a perfect child plan immediately so that you can add to the progress of your child’s ambitions. Just ensure to pick the child plan that caters to your child’s needs exclusively.

Also Read: Best Cashless Health Insurance Policies in India | Best Maternity Insurance Plans in India | Best Health Insurance Plans in India

Mar 01, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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