Compare & Buy Best Child Insurance Plan

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Child Plans

As a parent, you might dream of a bright future of him/her and investment is a vital step in doing so. Parents generally focusing on the major goals for their child such as marriage, education and a comfortable lifestyle as well. All these goals have different requirements, so it is essential to think about each separately and find the needful investment plan that can suit these requirements as well. For a bright future of your child, it is vital to think about the investment proposals as soon as possible.

Before investing everyone wants to be sure about the returns and the benefits that they will get in the future. Many questions arose in their minds at that time such as what would be the risks and benefit percentage? How will it help them?

Today the cost of education is so high that most of the parents are unable to provide their children the level of education they want. If this is the situation today, then you can imagine what would be the scenario in the future when the inflation will be much higher. A child future plan is designed to meet your child's future financial needs. Child investment plans are essential to meet the needs of providing the child with the best of education and to make sure that the cash flows are there at every crucial stage of your child's growth. For instance, if your child is 4 years old and you plan to provide him higher studies after say, 15 years which costs Rs. 20 lakh today, then you can imagine how much would it cost after 15 years. Therefore, it become necessary to invest for your child today in order to have funds available at the time when the actual need arise.

There are two types of Child policies in India- Child ULIPs & Child Endowment Plan. The plan you should select is usually dependent on the amount of coverage you want and the tenure of the policy. PolicyX.com understands your concern as a parent and thus provides you with best insurance plans from leading providers such as Max Life, HDFC Life, Bajaj Allianz, Reliance, etc. You can compare and choose the best child coverage as per your requirement on our portal within minutes.

Advantages of Child Insurance Plans

There are many benefits that you will get after buying a plan. Mentioned below are the major benefits that you will get along with a best plan.

Flexibility to choose

Basically life insurance for children provides you the flexibility to choose according to your economic status and superficial monetary goals. The rate of premium can also be settled as per your interest.

Maturity Benefit

At the time of maturity, the sum assured amount and a definite partaking sum will be paid to the parent or guardian. In the case of early death of the policy holder, the child is allowed to receive all the benefits of the plan (if the rider is attached to the policy).

Tax benefit

Yes, it is true that a child policy in India provides tax benefit that can be availed on maturity/death claim profits under Section 10 (10D) and assumption from income for the expenses of premium under Sec. 80(C).

Importance of Child Plans

The life of a parent is full of executing important duties towards the child. Right from raising the kid from infancy to seeing him/her relax with their very own families -there are important matters one needs to attend to. Parents take care of everything related to the child and want to make sure that their child's every want is looked after with none compromised.

This is where child plans can help you in looking after your infant's education or marriage expenses in the years to come. All you have to do is make investment of a part of your income in a child plan to ensure you have got enough funds in the times ahead whilst your child would require it the most.

So the day your child desires to pursue a degree in architecture from abroad or a film-making course in a reputed institute, you're in a comfortable position to ensure his/her fees. And even if something unlucky happens to you, you are confident that the needs of your childrenare taken care of when you aren't around.

Take a look at different child insurance plans and give your child the first-rate gift of a comfortable future today.

What if you die five years after taking the plan? The term insurance policy will give a lump-sum for the instant needs of the family and in addition investments in the mutual fund will stop. The child plan, however, will now not pay the lump sum, however, make an investment on behalf of the policy holder. Insurers trust the waiver of premium function in a child plan as the most important thing as it does not let the demise of the policyholder derail the investment plan for his infant.

An Indian investor is continuously unnerved with market volatility and lacks the necessary discipline to create wealth over the long term. It's pretty likely for the person to set cash in a mutual fund for his infant.

However, a child plan will make the parent retain making an investment, for the simple reason of making sure that he saves sufficiently for the kid. You could stop paying the premium after five years, however, specialists say this should be a tactical ploy to keep away from a cash crunch, not a strategic flow to lessen one's investment.

Insurers say child plans are dependent on fulfilling the desires of the kid. A normal Ulip stops if the insured person dies. You must plan for it today. If you are looking to buy a good child insurance plan, then you should take help of an online insurance web aggregator that helps you in choosing the best child plan for yourself. You can take help of free insurance quotes and comparison service in choosing the best out of all.What to check:-

Security

Ensures your child's future needs and allows you to plan in a better way to stabilize your future financially.

Multiple needs fulfilled

All future needs of your child whether its education, marriage, or business are covered and looked after

Liquidity

You have the provision of liquidizing your plan through partial withdrawals

Tax Exemption

You get tax deduction for the premium you pay under Section 80C and any income from the plan is tax-free under Section 10 (10) D of the Income Tax Act

Riders

You can buy the riders like accidental death benefit, income benefit and critical illness benefit.

Tips To Consider While Buying Child Insurance Plan

It is advisable for you to calculate the required funds for your child education and marriage before going to buy coverage for children. With this additional information, you would be able to choose the best cover and can decide easily on the related premium amount and the time period of the child life plan. In some products you will get additional benefits such as accident cover, health, etc. You must compare child policies of different insurance companies on our site because with it, you can compare the premium amount per year and the returns presented by different companies.

Make sure to insure your life also. It is beneficial to buy a plan which has a built in clause premium waiver for the future. This would guarantee that the plan continues if you are not there to take care of it and your child would be able to receive assured sum amount at maturity. It is advisable for you to check the company's record before purchasing child insurance. Buy the plan in the parent's name instead of a child, since the child anyway has no dependants. But if you are planning to buy the best one in the child's name, then ensure that it has a built-in feature of premium waiver in case of death of the parent.

This will protect your child from the burden of heavy premium payments and he will continue to reap the benefits of the plan. Also do a check out the tax benefits of the plan.It is an incredible financial investment planning tool for child education / marriage / unforeseen expenses etc. It assists in meeting the child's monetary needs and provides safety in the form of a life insurance plan.

Child Plans

For a great future of your ward, you must buy the best child insurance plan. By comparing service and free quotes, you will get the best and affordable child plan that meets your requirements easily. An online policy is a good option, it will assist you in comparing different plans of the top companies. It is worthwhile to look for best plan with riders and related features which make your plan more useful and effective. Riders provide additional benefits at low premiums. Some companies are offering riders as a part of the policy, whereas in few companies it is optional.

Riders provide a more secure and financially stable life to your ward. It is advisable to select a rider, according to your requirements. Don't think about the extra premium that you are paying for riders, consider the benefits that you will get and make your policy more powerful.

Customer Benefit

The most helpful riders are those which make sure that the policy will not terminate in the case where the policyholder dies during the policy period.

Premium Riders

Future premiums are waived off for the child, in case of death of the insured. With the help of it, your child will not have the burden of paying the rest premium amounts.

Critical Diseases

The insurer will pay a lump sum amount for the treatment of your child in case of dreaded diseases that may hamper his future growth.

Accidental Benefits

It is same as above, in this case the insurer will provide a lump sum amount for the treatment of your ward.

Features of Traditional Child Policy

Here are some main features that you must look for hen you are purchasing a child policy for your ward's future.

Premium

The premium completely depends upon the type of coverage and sum assured that a consumer choose.

Sum Assured

The best way to calculate the required sum assured is that the sum assured should be around 10 times your current income.

Policy Term

For this first check your war needs and his/her age and buy a policy till your child get on his feet.

Riders and Benefits

A child policy must be offering many types of child insurance policies such as Premium Waiver Benefit, Accidental Death and Disability Benefit, Critical Illness Rider Benefit and much more just look for that.

Apart from this there are some more things that you must check such as maturity amount, waiver period, partial withdrawals and lots more.

Now the question that arises is that which is the best child policy for you, but there's no right answer of this question as the child policy depends upon the requirement of the policy holder. You should cautiously compare and then purchase the child policy that suits your need and which meets the future needs of your ward.

How it works?

Many people ask how a child insurance plan really works? Will they be able to provide assistance on time? Will they help in dealing with all the upcoming expenses and so on. The basic step is that you have to invest an amount on the monthly basis for maximum 25 years. It will help you in saving a lot of money for your child with good returns that will help you in dealing with the child's education expense and later on, marriage expense as well.

Those child plans that are linked with ULIPs will get maximum returns for your child. It is found that unit linked child insurance plan is misunderstood just because of its high costs. They maximize the benefits after a long term period of the plan and you have to continue with the plan tenure. If you require good returns and nice growth, then you should be ready for the higher market risk that is involved in the same.

Why Invest In The Child Insurance Plan

You must be not aware of those benefits that a child insurance plan can give you. It will take care of maximum financial needs of your child when you are there for them or even in your absence. It will help you in providing the best education for your child. Saving for a child insuranceis also the best thing for your insurance policy as well.

When you are going to shop for a child plan online or offline, you must keep a few factors in mind while choosing the desired one.

Factors that you must keep in mind while shopping for the best child insurance plan

1. Time period for building a good corpus

2. An estimation of the amount that is required to build a corpus

3. The age in which fund will be required

4. Investment avenues to be considered.

Documents Required For Child Insurance Plans

Age proof - Birth Certificate, 10th or 12th mark sheet, Driving License, Passport, Voter ID, etc.(Any one)

Identity proof - Driving License, Passport, Voter ID, PAN Card, Aadhar Card, which proves ones citizenship

Income Proof - Income proof specifying the income of the person buying the insurance

Address proof - Electricity Bill, Telephone Bill, Ration Card, Driving License, Passport, should clearly mention the permanent address

Proposal Form - Duly filled in proposal form is required