Top 5 Benefits of Buying Child Insurance Plans

As a parent, what do you wish for your child? You wish that your child can live comfortably and happily without any kinds of hurdles or challenges faced by him/her in life. It is your sole responsibility as a parent to ensure that a child receives the financial support to achieve their key milestones in life. Fulfilling this responsibility requires careful financial planning. A Child Insurance Plan is a plan that combines a dual plan that includes an insurance plan with a savings plan and safeguard your child’s future against financial obligations. 

Child Savings Plans act as an instrumental tool that help in building an investment corpus to meet the major expenses of your child's life. Moreover, in the case of an unforeseen event, your child receives the death benefit which can cover school fees, higher education expenses and other living expenses and motivate them to fulfil their desires.

In this Article, we will keep a focus on top benefits received by the policyholder after purchasing the Child Insurance Policy. 

Top 5 Benefits of Buying Child Insurance Plans

There are 5 most important benefits that you as a policyholder will receive after buying a Child Insurance Plans. The benefits are as follows: 

• Child plans provide Tax Benefits

By purchasing Child Insurance Plans you are entitled to avail exemptions on the premiums paid up to Rs. 1.5 lakh from your tax income under Section 80C. The returns are also tax-deducted provided the policy prevailing in the regulations under 10(10D).

• Covers the costs of Medical Cost of your Child

Medical costs in India are increasing at twice the overall inflation rate. Hence, it is important to plan for unfortunate health conditions. Child Plan returns can help you to afford the high treatment costs, and provide you with medical assistance in emergencies to your child. 

• Premium Waiver Benefit

Some Child Insurance plans  provide an inbuilt premium waiver benefit or an additional rider for the same. This benefit takes care that the plan does not lapse even if the parent passes away during the policy tenure. The Child gets assured Maturity Benefit If the parent passes away the Insurance Company waives off the future premiums. The Premium Waiver Benefit earmarks the plan for the child’s benefit whether the parent is present or not. 

• Secured Corpus for the Child

It allows you to save your child’s future. They include a death benefit which is a lump sum amount on the death of the parent, if the parent is the policyholder under the policy. It gives your loved ones financial security. This benefit can be used as a fund in a child's higher education, marriage, etc even in the absence of the breadwinner. 

• Different Variants

Child Insurance Plans come in different varieties. You have the option to buy an Endowment Policy or a Money Back Policy to generate guaranteed benefits. On the other hand, if you are not averse to risks, you can invest in market-linked ULIPs which can provide you amazing returns on your savings and  create an inflation-satisfied corpus for your child.

Conclusion

Benefits included in the Child Insurance Plan are just tremendous and safeguard your child for a longer period. Child Insurance Plans help you fulfill more than just your child’s life objectives. Availing a Child Plan has become necessary nowadays. You need to be sure about the plan you are selecting and should be suitable with the purpose you are acquiring for. Do go through the documents of the particular plan before purchasing it for your child's future. 

Also read 

Why Should I Buy Child Insurance Plans Online At Insurancedekho?

How Child Plan Helps You Plan For Your Child’s Future?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.