What is a Child Insurance Plan?

Child Insurance Plans is a long-term investment plan whose main aim is to save and secure savings for you and your family's future. When it comes to being a parent your main goal is to make your child's future bright and to fulfill your child's dreams and desires.These are the  plans that can help you achieve your objectives by saving for your children’s higher education in a systematic and convenient manner.

With a wide variety of options available in the background you might get confused about choosing the right plan for your children's future. The plans especially designed for this purpose are known as the Child Plans

Features of A Child Plan

Child Insurance Plans provides you some great features such as: 

• Lump Sum Benefit

This plan provides your children with a benefit of lump- sum in the case of your unfortunate death during the policy term. 

• Waiver of Premium

Company will pay the premium payments on your behalf so that your child won’t be burdened with premium payments and can live their life without any hassles. That means the policy will continue to exist after your death too till it attains maturity. 

• Partial Withdrawals

 You can withdraw your funds during the policy tenure in the form of partial withdrawals, but certain conditions are applicable on it. This plan takes care of your child’s educational milestones even in your absence. 

• Tax Benefits

 This plan also offers you with another benefit i.e. tax benefits to the policyholder applicable under section 80C of the Income Tax Act. Under this benefit tax can be deducted upto Rs. 1.5 Lakh under section 80C of the Act.

• Loyalty Addition and Wealth Booster

 These  plans may also offer you some additional benefits such as Loyalty Addition and Wealth Booster for staying invested for a long term. It will help you towards growth of your money and boost your finances along with that you don't need to invest any extra money. These are payable at the time of maturity of the policy. 

• Riders

 This plan comes with a variety of Riders such as critical illness cover, accidental death cover along with the payment waiver option. Accidental death cover provides you with an additional sum in case of death through accident. Critical Illness cover protects you against a set of harmful diseases. 

• Choice of Funds 

Some part of the premium is invested in market linked assets such as equity, debt or money market gadgets. The company provides the policyholder with an opportunity to choose an option from different funds according to their requirements. 

Types of Child Plans

There are two types of Child Insurance Plan whom you can count on: 

• Child ULIPS

This plan is known as the Unit Linked Life Insurance Plan. It's an insurance policy that doubles up the same as an investment. Under this plan, part of your money goes towards protecting your child's future needs and education just like the standard child education plan. The left part of the plan is invested in a mix of equity and debt.

• Child Savings Plans

This is the plan which allows the policyholder to do investment  in the plan without any kind of market risk. It is a multi-benefit plan that provides you with the life cover, maturity benefits and tax benefits, all in just one single policy. 

Conclusion

A child insurance plan is the right choice for you if you are looking for an investment solution that can work as an insurance cum investment for securing the future of your child. These plans not only help you accumulate wealth for your children but also provide them with a protective shield for their financial soundness in times when you are not around them.

Also read 

Things To Keep In Mind While Buying a Child Plan

How To Compare Child Life Insurance Plans Online?

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.