A child insurance plan is a life insurance policy that combines financial protection and investment benefits to secure your childās futureāwhether it’s for higher education, marriage, or other life goals.
These plans ensure that even in your absence, your childās dreams are never compromised.
š Funds for Education & Career Goals
š”ļø Life Cover for Parent (Policyholder)
šø Lump Sum or Regular Payouts at Milestones
š« Waiver of Premium in case of parentās demise
š Wealth Creation through Investments (ULIP-based plans)
š§¾ Tax Benefits under Sections 80C and 10(10D)
If you’re a parent or planning to be one, a child insurance plan helps you financially prepare for:
School and college education fees
Extracurricular and coaching expenses
Marriage costs
Starting a business or career abroad
To provide financial support for your childās future, even in your absence. It helps you build a fund for education, marriage, or any major milestone.
The earlier, the better. Starting early gives your money a chance to grow and makes future expenses easier to handle.
Usually, the parent is the policyholder and insured. In case of the parentās death, the child still receives the benefits.
In case of the policyholderās (parentās) death, the future premiums are waived off, but the plan continues, and the child receives all the planned benefits.
They are a combination of both. Some offer guaranteed returns, while others (like ULIPs) are market-linked for higher returns.
The plan pays out the maturity amount or milestone payouts as planned, helping the child pursue their goals.
Some plans allow partial withdrawals after a certain lock-in period to help meet urgent educational needs.
Yes. Premiums are eligible for tax deductions under Section 80C, and the maturity amount is usually tax-free under Section 10(10D).
It depends on your childās future goals and inflation. Most parents opt for ā¹10ā25 lakhs or more, depending on education and lifestyle planning.
A child plan offers the dual benefit of insurance and disciplined savings. It also protects in case of a parentās untimely deathāsomething FDs or mutual funds donāt offer.
