Do you know what the pandemic brought on to us recently? Without a doubt, pointers that we need to get life insurance. Well, life insurance has become more popular than ever in the past years. It is definitely an investment for an event that no one hopes would happen. Today there is more than one reason why you would purchase life insurance. Most importantly, this stands for the people who are most dependent on you. Your children, right? Strong and reputable companies out there are selling the best child insurance plan in India, and yet, are you wondering why you need to get one of these plans? Here is why.
The Pros of Buying Life Insurance for your Children
It comes with cash value: A part of the premiums paid for a whole life insurance policy is allocated to the accumulation of cash value. When you purchase a policy for a kid, a larger part of the premium will be allocated to the cash value because the cost of insurance is lower, and there is a long time for the cash value to accumulate.
It Allows the Lock-in for a Low Rate: There will never be a better time to buy life insurance than when your child is a baby. Rates will rise with each passing year of life. Naturally, you or your child will have to pay premiums over a longer period of time. However, due to the extremely low rates for a youngster, the total amount paid overtime may be lower.
Insurability is Guaranteed: The most appealing aspect of a kid’s life insurance policy is that you are ensuring that your child will have coverage even if he or she develops a health issue later in life. Furthermore, insurers frequently include riders (at an extra cost) that allow you or your kid to obtain more coverage in the future without having to undergo a medical exam or prove insurability.
So here, let us look at some of the best child plan policies 2021 has to offer for you and how they can benefit you.
Some Best Child Insurance Policies
Child insurance plans are a combination of savings and insurance. It helps the individual to plan for the financial future of their children. With this insurance plan, it is easier for a parent to be assured that all the necessities of the child will be taken care of, even when the parent isn’t around.
Aegon Life Rising Star Insurance Plan
This plan is a unit-linked insurance plan, and it aims at providing financial protection to the child against any type of emergency. It is a plan that also helps to create a financial cushion. So, in order, it will cover the financial needs of the child that need to take care of. By this, the child can achieve a major milestone on the road to a better future.
– It is a plan that comes with the option of regular premium payment.
– The plan also comes with an inbuilt premium waiver benefit on the death.
– The plan gives four different options to invest in.
– It provides financial security to the child and also takes care of educational expenses by coverage until the age of 25.
– The plan also gives out multiple fund options to invest in, based on the requirements.
– It also offers partial liquidity after completing five years of the plan.
– Customers can also avail of tax benefits from the plan.
– It also has the leniency to increase insurance coverage during the policy.
Aviva Young Scholar Advantage Plan
The Aviva Young Scholar Advantage Plan is a non-participating unit-linked scheme, and it is specifically designed to cater to the financial needs of the child. It gives complete protection to the child against any type of eventualities.
– It is a plan with comprehensive insurance coverage for the child.
– In the case of the demise of the parent during the tenure, the plan also offers a waiver of future premium.
– The plan also has an option for an add-on premium in the form of a top-up.
– It offers an option to invest in seven different funds based on the requirement.
- Bajaj Allianz Young Assure
This is a traditional saving plan that makes sure of financial security for the future of the child along with the benefit of full live coverage. It aims at helping the child achieve a major milestone in life.
– It offers a minimum entry age of 18 and a maximum of 50.
– The maximum majority age of this scheme is 60 years.
– It also offers a rebate for higher assured sums.
– It offers a premium with policy term deposits.
– There is a guaranteed maturity offered along with the guaranteed additions to the policyholder.
– On the maturity of this policy the vested bonus plus the terminal bonus is paid to the insured.
– Tax benefits under U/S 80C of the Income Tax Act can also be availed.
- Bharti Axa Life Child Advantage Plan
Bharti Axa Life Child Advantage Plan is a non-linked participating life insurance plan that offers the flexibility of choosing from money back or endowment options. This plan also comes with an in-built premium waiver benefit option.
– The minimum entry age of this plan is 18 years, and the maximum stands at 55.
– This policy offers the flexibility to choose from different policy tenures.
– The maximum maturity offered for the scheme is at 76 years of age.
– Depending on the age of the children, you can choose from the terms of 11 years to 21 years.
- Birla Sunlife Vision Star Plus Insurance
The Birla Sunlife Vision Star Plus Insurance is a traditional participating plan that is specifically designed to give regular assured payouts for financing the child’s education and financial security for the future, even in the absence of the parents with comprehensive financial protection.
– This plan provides the option to choose assured amounts depending on future needs.
– It gives the policyholder the option to choose from two different payout options.
– You can even choose to pay this premium out annually, semi-annually, quarterly, or on a monthly basis.
– In the case of demise, the nominee will get the death benefit.
– There will be accrued bonuses that will be paid out on the maturity date.
- Exide Life Mera Ashirwad Plan
It is a guaranteed child insurance plan that is specifically designed to give financial protection to the child and help them to achieve major milestones of life. It is a scheme that pays out money at critical milestones of life like higher education, marriage, and much more.
– This plan offers a minimum age of 21 years, whereas the maximum is 50 years.
– The maximum age for the policy is 65 years.
– Tax benefits can be availed on this plan.
– This plan also offers flexibility to get periodic payouts.
- Future Generali Assured Education Plan
This is a non-linked and non-participating plan that has been designed to secure the future of the child and help them to achieve the major milestones of life.
– Future Generali Assured Education Plan offers a maximum maturity at the age of 67 for the parents.
– The plan also offers different payout options.
– Tax benefits under U/S 80C of the Income Tax Act can be availed.
– This is a plan that also secures child education even in the absence of the parents.
- HDFC SL Youngster Super Premium Plan
The HDFC SL Youngster Super Premium Plan is a unit-linked insurance policy that helps accumulate funds so it can be used at different stages of the child, for instance – higher education, marriage, and much more.
– HDFC SL Youngster Super Premium Plan gives flexibility to the policyholder to choose from 4 different fund options to invest in.
– It also gives the customer flexibility to choose a premium amount.
– You can also customize the plan as per their need and suitability.
– Tax benefits can be availed U/S 80C of the Income Tax Act.
- ICICI Pru Smart Kid Assure Plan
It is a plan that allows the policyholder to create a financial corpus for the children’s better future and also provides the perks of insurance coverage.
– This is a plan that also offers 2 different options of premium payout.
– The maximum maturity age for this scheme is 64 years.
– The tenure for the policy ranges from 10 years to 25 years.
- Kotak Head Start Child Assure Plan
The Kotak Head Start Child Assure Plan helps to secure the child’s future financial needs and ensures that the financial requirements of the child are taken care of, even in the absence of the policyholder.
– The Kotak Head Start Child Assure Plan also offers comprehensive protection to secure the financial future for the child.
– It also offers 2 different portfolio strategies to choose from.
– With the plan, you can also avail tax benefits.
All of the above-mentioned life insurance providers are reputable companies and have several perks that the policyholder can take advantage of. Whether you choose private or government child investment plans, it all ends up to what is suitable to your requirements and the benefits that come along.