What Are The Common Exclusions Under Child Insurance Plans?

Being a parent, the first and the foremost responsibility is to have proper financial planning in place to provide a safe and a secure future to your children even in your absence. These planning will help your children to have financial support during the journey of achieving major milestones in life. Child plans are  types of life insurance, which play an important role in helping parents fulfil these accomplishments. Child Plans consist of 2 types which include Unit Linked Life Insurance Plan and Saving Plan. 

Some of the Child Plans are specially designed keeping in mind the fact that life is uncertain. The plan offers you the facility of life cover and also provides regular payouts during major milestones of your child’s life. Child Insurance plans help you to boost your wealth and create an investment corpus for your future growth. This investment corpus can be used by your children for their higher education in case of an unfortunate event such as death.

In this article we are going to discuss some exclusions i.e. certain circumstances for which Child Insurance Policy does not provide any coverage or benefit under the policy. 

Exclusions of Child Insurance Plans

Some of the exclusions are not covered under the Child Insurance Policy. The list of the same are as follows: 

• Suicide or Self Harm

  Child Insurance Policy does not provide any claim amount or coverage to the nominee of the policy if the death happens due to suicide during the 1 year of the policy. The lump sum amount that is Sum Assured and Premium Waiver are not payable but only the Fund Value on date of death is payable to the nominee if the death occurs within 1 year of the commencement of policy. 

• Participation in Adventurous or Risky Sports

  Child Insurance Policy does not provide any claim amount or coverage to the insurer to enjoy if he/she knowing participates In risky and dangerous adventurous activities or in risky sports such as sky diving, rock climbing, paragliding, hang gliding, etc. 

• Alcohol or Drug Abuse

  Child Insurance Policy does not entertain any claim amount or coverage to the nominee if the insurer dies due to drinking of alcohol or consumption of overdose of drugs. 

• Accident due to Driving under Influence of Drug/Alcohol

  Child Insurance Policy does not provide any coverage and claim amount to the nominee of the policy under the circumstance of death occurs of the insurers due to driving by drinking alcohol or consuming any harmful intoxicants. 

• Criminal Activities

  Child Insurance Plans do not entertain any claim amount or coverage facility in case the insurer is involved in any illegal activity or war related acts or criminal activity which leads to death of the insurer.

Conclusion

Child Insurance plans can be used as a tax saving tool because premiums you paid are deductible from the premiums you paid during the policy under Section 80C and Section 10(10D) as per the prevailing Income Tax laws. Before going for a particular policy you must go through the exclusions very carefully and thoroughly. Because only after checking all the exclusions which are not covered by the Child Insurance Policy. One can go for an ideal Child Plan, the one who has the least number of exclusions and best according to your requirements and suitability. 

Must Read: The Most Important Plan of All Investment Options: Child insurance

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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.