A child is the most precious person for his or her parents. The parents do everything in their power to ensure the child is well-taken care of and cared for in all situations. The parents ensure this in their lifetime and after by buying suitable child insurance plans. A best term insurance plan for a child is not available, but parents buy term insurance plans and child insurance where they are insured for the benefit of their child. This means if they die, the insurance claim money is used to ensure the child’s education and wellbeing are not compromised upon. Take a look at this article to know more.
What is child insurance?
A child plan is a form of life insurance where the parent is covered in favour of the child. If the parent dies before the policy matures, the child gets the sum assured which is used for his education and livelihood expenses.
Reasons why a child insurance plan is needed
Here are some reasons why you need to invest in a child insurance if you have children of your own:
- Multiple payouts – This is a very big advantage of buying a child insurance plan. The maturity benefit in such a plan is broken up into parts and paid at fixed intervals throughout the policy period. You can choose to get a percentage of the payout when your child turns three and seeks admission in a school. The next payout can happen when he is 18 years old and looking to get admitted in the college. Yet another payout can take place when he is 25 years old and setting up his own business and a final payout can happen when he is 27 years old and looking to get married.
- Helps to pay for milestones – As mentioned above, the multiple payout facility is available in a child plan. The child insurance plan helps you to financially manage all the important milestones of your child’s life. This is very helpful as you can pre-plan your economic path and ensure your child is never short of funds when meeting an important milestone.
- Benefits the child – The nominee of a child plan is quite obviously the child. If you die, your child may be left without anyone to pay for his studies, etc. But when he is the nominee in a child insurance plan, his education costs are completely taken care of. This benefits him immediately after your death and also in the long run. As a result, every child should be covered under a good child insurance to ensure he never faces any troubles after the demise of his parents.
- Premium waived off – A major and very helpful clause of a child plan is that the premiums get waived off when the parent, the prime policyholder, dies. The child plan continues to stay in force and the insurance company pays the premium on behalf of the deceased parent. The regular payouts keep happening and the promised death benefit is paid out to the family as well. This is one of the main reasons why people buy a child insurance plan.
- Riders are available – All the standard life insurance riders are available along with a child insurance. This helps you to customise your plan even better and get a more precise life cover. Choose your riders carefully as every extra rider will cost extra money. Choose the ones you need and drop the ones that are of little use to you or your child.
- Tax benefit – A child insurance plan is a life insurance policy. Hence, the premium you pay for the child plan qualifies for a tax deduction under Section 80 C of the Indian Income Tax Act. This is a good way in which you can save tax while keeping yourself and your child covered.
These are the main reasons why, as a parent, you need to get a good child insurance to protect your child’s future, in your own presence and your absence as well.
Some of the best child plans in India
Here is a list of the best child insurance plans in the country:
- HDFC Life Youngstar Udaan
- ICICI Prudential Smart Kid Plan
- Max Life Shiksha Plus Super
- Bajaj Allianz Young Assure
- LIC Jeevan Ankur
- Birla Sun Life Insurance Vision Star Plan
- Aviva Young Scholar Advantage Plan
Get a good child plan from a good life insurance company and stay adequately covered.
As you can clearly see from the points mentioned above, a child insurance plan goes a long way in ensuring your child remains protected in every possible manner. Parents’ love and concern are unparalleled. So to make sure you have the best provisions for your little one, get a good child insurance plan without any further delay. Cover your own life and keep your previous child protected