A child brings happiness, joy and peace in your lives ever since the time you know that you are carrying him/her till the time the kid is fully grown-up and independent. You always strive hard to give the best education and best of everything to your bundle of joy. After all, there is nothing more rewarding than seeing your kid grow and turn into a beautiful human being inside-out. With inflation and education fees soaring high, it might become a nightmare to offer your child the best of education for his/her growth or prosperity. A child insurance plan is the best option that offers your child an avenue of investment for his future at the same time guaranteeing the promised co¬¬rpus in case of your untimely death.
Children’s ULIPs offer high insurance coverage, participation in the equity markets as well as disciplined investments. In case of death of the insured parent, the child who is the nominee is offered the sum assured as well as the future premiums are waived off. This plan pays the amount on maturity to make sure that your child’s future dreams are fulfilled.
Stable returns are offered in the form of bonuses in this plan. In short, from the 2nd year onwards, bonuses are paid. You can also check if these bonuses are in cash or a reversionary bonuses would be compounded or whether a simple interest would be paid. It is a perfect blend of insurance and investment.
Money back plans are beneficial as investment tools in child insurance. It lets you plan your future expenses basis, the regular payouts. On maturity, you get a lump sum as a part of money back plan. But, money back plans for child insurance doesn’t reap good returns and aren’t flexible enough for withdrawing your investment.
Upto 25 yrs
You’re young and healthy and probably must have just begun your career a year or two back. Life insurance certainly may not have yet crossed your mind. But trust us; your mid-20s are the best and smart time to start looking at life insurance. Simply put, the younger and healthier you are, the lower it would cost to insure you. You may have to shell out a very low premium today for you to potentially save thousands of rupees in the future
25 yrs to 40 yrs
40 yrs to 60 yrs
Above 60 yrs
Whole life insurance plans are the most comprehensive types of insurance that offers life cover to the policyholder. Since these plans come with a component of saving and last for lifelong, it would be wise to opt for whole life insurance plans for people who are above 60 years of age.
Child plans are a mixture of both insurance as well as investment. The primary goals of these plans are to offer a financial security to your child’s future. It also aims to financially support your child during his/her important milestones of life such as higher education as well as marriage
Death is inevitable. But, no one likes to think about it. However, when you buy a life insurance plan, it is important that you figure out who will receive the money that the policies pays, once you are gone. Therefore, it is important to understand the role of a nominee and the manner in which a life insurance plan works.
The investments made in a child plan offer a financial back-up for your child as well as tax benefits thereby reducing your tax liability. The premiums that you pay towards the child insurance plan, offer tax benefit under Section 80C of the Income Tax Act, 1961. You can avail this tax deduction up to Rs.1.5 lakh at the time of computing taxable income. The death benefits paid under the child plan are exempted from tax under Section 10 (10D) of the Income Tax Act, 1961.
You will be required to fill-up a third-party declaration form in case you wish to make an investment in the name of a child who is a minor. However, only parents and/or grandparents can make an investment for the child. You will need to submit any document that mentions the blood relation of the kid. You need to also ensure to fill up the appointee’s name in the form on your minor’s behalf till he/she turns an adult. Also, investment can be made by the appointee on behalf of the kid.
Experts suggest buying a child plan at the earliest possible (on the birth of the child) since it will help you accrue a higher cover over a period of time.
Well, this would totally depend on the age of the child, sum assured, policy duration, etc.
You very well know that you’ve paid for it but are hoping to never require using it! When you file an insurance claim, you probably have suffered some type of loss or damage that is insured by your Insurer. This is when your Insurer offers you coverage and compensation for the losses covered or for the damages after validating your claim. So it is vital to be familiar with the claim process to avoid any headache at the later stage.
You may have bought an insurance policy, yet have thousands of queries and doubts. Our ‘Your Policy’ section is the fastest way to resolve your insurance related doubts and queries. All you need to do is attach your active insurance policy and write to us about your queries. We never let our customers down.
Many questions may come in your mind before buying an insurance policy. ‘How much insurance I would need, how many years I shall invest for, what would be the premium, etc.. Insurance Calculators are life-savers. They help you know your insurance needs and assess the potential costs. Grey Font brings to you various Insurance Calculators and interactive tools to help you calculate your insurance needs. In order to get better results, ensure to enter a value in all the possible fields.
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Life insurance riders are add-ons that offer an extra touch of benefit over your basic policy and also act as waivers of premium. Learn more about Life insurance riders here.