When it comes to your child you look for the best in everything, be it education or toys. So why don’t we secure their future financially! It is indeed one of the best gifts which they can use as and when they need.
The new age parents are aware of securing their child’s future. For this, they take the help of some very amazing insurance plans. These plans can be either tailor-made or can be as is it. These plans help the child at the different stages of life starting from education to career to studying abroad and marriage. Not only this these also kind of foolproof the child in case of a sudden demise of a parent.
Investment Benefits of the Child Insurance Plans
- Customized pay-outs: This is the biggest benefit as there is an option for flexibility in case of pay-outs.When your child grows, there are times when he may need some financial support. This is particularly required when they step into college. When you are ready with a good insurance plan, you can easily work around the pay-outs as your child reaps the maximum benefit when required.
- Safeguards the child’s welfare: Though tailor-made policies are expensive, these take care of the shortcomings when your child steps out in the world in pursuit of their dreams.
- Opt for riders so as to secure the child plan: A good insurance plan always offers riders at a nominal cost. One can avail these for additional security.
Best Child Plans to Opt For
There are several companies offering many flexible and new child plans. But with so many on the plate, it is but obvious to get confused after all it’s your money which is at stake. Here are some plans which may guide you to make a wiser decision:
1. Aviva Young Scholar Advantage Plan (Child Education Plan)
This is a Unit Linked Insurance Plan (ULIP). This plan hold for the benefit of the child and parent Life Insured. Basically, it does not cover the child but is for the security of the child in case anything happens to the parent.
- Policy term for this plan is 10-25 years
- In case of the death of the parent who is Life insured, the child that is the nominee will receive the Sum Assured
- Future premiums will be waived off by the company
- The policy gives easy flexibility to use the money appropriately
- Riders like Child Education Rider, Comprehensive Benefit Rider and Term Plus Rider are available with this plan
- An additional Accidental Rider is inbuilt in the plan
- 9 Fund Options along with 2 investment Options of Systematic Transfer and Automatic Asset Allocation with Partial Withdrawal are also available
2. ICICI Pru Smart kid Assure Plan
- The entry age of the parents for this plan is 20-60 years, while that of the child is 0-12 years. The maturity age for parents is 50-70 years and that of children is 22 to 25 years
- Investments can be controlled by opting among eight funds which are balanced, debt and equity funds. A switch can be made among these funds at any given time
- Premium can be paid with ease either throughout the tenure or at once
- In case of an emergency like a need of cash then withdrawals can be made on the completion of five years of the policy
- Flexibility in choosing the level of protection
- Loyalty additions and tax benefits can be availed through this plan
3. Bajaj Allianz Young Assure
- Entry age for this plan is 18-50 years and maturity age is 28-60 years
- The tenure of the plan can be for 10, 15 or 20 years
- The rate of premiums are lower for females
- The policy comes with an inbuilt Accidental Permanent Total Disability Benefit Rider
- There are 5 additional riders which can be included in the plan accordingly
- Tax benefits can be reaped
4. HDFC SL YoungStar Super Premium
This is a Unit Linked Insurance Plan(ULIP) tailored best to take care of your children.
- The entry age for this plan is between 18-65 years and the maximum maturity age is 65-75 years
- The minimum yearly premium is of Rs 15,000 while there is no limit for maximum
- The plan comes with 2 cover options of Life and Health Option and Life Option
- The minimum term for policy is 10 years while the maximum is for 20 years
- On maturity, the insured gets the total fund value which can be easily availed over a period of 5 years after maturity
- Regular payouts are made to the family on the demise of the policyholder
- Tax benefits are available
5. Max Life Shiksha Plus Super
- The entry age when opting for this plan is 21-50 years while maturity age is 65 years
- The policy term is for 10 or 15-25 years
- One can opt from five options like Growth Super Fund, Growth Fund, Balanced Fund, Conservative Fund and Secure Fund. Each of these funds covers different levels of risk
- Depending on the goals there is flexibility to opt for policy term and the term of the premium
- Partial withdrawal can be made in case you are in need of money
- On the sudden demise of the insured, a lump sum payout is made along with benefits like family income and premium funding
- The amount received on maturity is equal to the fund value
- Tax benefits available
6. Birla Sun Life Insurance Vision Star Plan
- Entry age is 18-55 years and the maturity age is 75 years
- A minimum of Rs 1 lakh is the basic sum assured, while there is no cap for the maximum
- Maturity benefits give the accrued bonuses and terminal bonus if any
- A death benefit is offered in case of the sudden demise of the policyholder. The nominee receives the sum assured on death along with assured payouts and bonuses
- If the policy is not surrendered, it can be easily revived in two years time period from the date of the last unpaid premium
- A minimum of Rs 5000 and maximum of 85% of the surrender value loan can be taken against this policy
- Tax benefits available
7. Reliance Child Plan
- This plan helps in setting up your child’s future business
- Also, looks after the educational needs of your child
- Periodic benefits are guaranteed
- Life cover for entire policy term is available
- On maturity, the benefits include 25% of the assured sum with the bonus
- Tax benefits available
8. LIC Jeevan Ankur
This is again a child benefit Endowment Plan with the child being a nominee and the parent’s life insured. The plan is specially designed to help the child secure their future even till the policy tenure ends in case the insured parent dies.
- Premium can be paid on a monthly, quarterly, semi-annual, or annual basis
- Loyalty benefits can be availed with maturity benefits
- On can choose riders like accidental benefits and critical illness
- In case the premiums are not paid, the policy can be revived in five years time from the date of the premium
- In case the premium is surrendered, a guaranteed surrendered value is received on single and regular premium policies
Now that you are aware of a plethora of options, why not step ahead and secure your child’s future now!!
Insights from Policy Bazaar, My Insurance Club.com, Jagoinvestor, Good Moneying