What is a dream? Creating a scenario in your head that relates to your future is fascinating. Who do you want to become? Even though dreaming can be enjoyable and exciting, without the final piece of the puzzle, your dreams will remain just that—dreams. The missing piece of the puzzle is money. Without financial support, your child will find it challenging to pursue their dreams.
Therefore child insurance is essential. By setting aside money for your child's goals and dreams, these plans assist you in securing their future. A child insurance plan gives you the financial security to realise your child's future aspirations, whether sending your child to an international higher education programmed or pursuing your child's entrepreneurial dreams.
Why Child Insurance is Important
Here are a few points that highlight the importance of child insurance.
Build a Financial Corpus: Your investment in a child insurance plan's premium is multiplied by up to ten. You can use the one-time payment to cover your child's educational expenses, such as higher education at a renowned international university.
Cover Medical Emergencies: You must buy a child insurance policy early on when your child is healthy if there is a family history of a severe illness. In addition to your health insurance, the money invested in a child insurance plan will be helpful if, God forbid, your child were to contract one of these diseases in the future.
Collateral for Loans: All banks will typically accept a child insurance policy as collateral if you want to apply for an education loan or personal loan for your child. When your son or daughter needs a lump sum to pay for higher education, this will be of great assistance to him or her.
Tax Benefits: The parent who pays the premiums can receive tax benefits from investing in child insurance plans. Section 80C of the Income Tax Act allows tax deductions for premium payments.
Best Child Insurance Plans In India
Here is the list of best child plans available in India 2022:
|
Insurance Company |
Plan Name |
Minimum Annual Premium |
Maximum Sum Assured |
|
LIC |
LIC New Children's Money Back Plan |
INR 4,327 |
No Limit |
|
HDFC Life YoungStar Udaan |
INR 24,000 |
Depends on premium, age, and policy term. |
|
|
Smart Kid Solution |
INR 48,000 (for one pay option) |
10 times of Single Premium |
|
|
Future Genius Education Plan |
INR 40,000 |
No limit |
|
|
Smart Champ Insurance |
INR 6,085 |
Rs. 1,00,00,000 |
*The order of the plans are not based on the ranking.
*Premiums in this table are calculated for a fixed sum of INR 1,00,000.
Benefits of Child Insurance
Let us discuss the benefits of child insurance plans.
Act as a Savings Fund: A child policy serves as both financial protection against unforeseen events and a savings account for the child. The beneficiary of the policy receives a lump sum payment when the policy matures.
Protection: It is a kind of plan that gives you a lot of protection. It is a savings and life insurance in one plan that will cater to your needs.
Premium Waiver Benefit: If the policyholder passes away while the policy is in effect, this rider option will waive the future premium. The policy's benefits are still available after it expires.
You can buy child insurance online from the official website of the insurance company and from RenewBuy.
Bottom Line
A child’s dream can only be fulfilled if he/she is given the right advice, platform, and financial stability. Buying the best child plan can do wonders for a child's future. To choose the best child insurance plan that meets your child's future needs, compare the premium costs, benefits offered, the sum assured, and other features like available riders.
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