Child Insurance (Child Education Plans): Compare and Buy Online

A child insurance plan, which combines insurance and investments, aids in financial planning for a child's future needs. The insurance component makes sure that a child is still safeguarded in the terrible event of a parent's passing. You can build up a large enough corpus through the investment route to protect your child's future. Furthermore, Child insurance policies in India offer flexible payouts at significant junctures that might efficiently pay for a child's education at various times. Read More

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    Life cover Till Age 100 Years
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Compare Child Insurance Plans Online

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What Is A Child Plan/Child Policy/Child Insurance?

A child insurance plan is a type of life insurance policy designed to provide financial protection for a child's future. Child insurance plans can also offer other benefits such as waiver of premium, which means the premiums are waived in case of the parent's death or disability.

Some plans also offer savings or investment features, which can help parents save for their child's future education or other expenses. Child insurance plans can be a useful tool for parents who want to ensure that their child is financially protected in case of an unexpected event.

However, it is important to carefully consider the terms and conditions of the policy, as well as the costs and fees associated with it, before making a decision. It's also worth noting that some financial experts believe that a term life insurance policy for the parent(s) may be a more cost-effective way to provide financial protection for the family as a whole.

The importance of child insurance can not be understated given the unpredictability of life. Children rely on adults for a variety of things, including food and money to pay for their education. A child shouldn't have to suffer financially after losing a parent in order to get the most basic level of care and education. This is why having child insurance is crucial if you're a parent.

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What Types of Child Insurance Plans in India 2023?

In India, there are several types of child insurance plans available in 2023, which can broadly be classified into the following categories:

Traditional Child Insurance Plans

These are basic insurance plans that offer life cover for the child along with a savings component. The premiums paid towards the policy are invested in a low-risk fund, and the policyholder receives the sum assured along with the bonus upon maturity of the policy or upon the child's death. These plans are ideal for parents who prefer low-risk investments.

Unit: Linked Child Insurance Plans

These are investment-oriented insurance plans that provide a life cover along with market-linked investments. The premium paid towards the policy is invested in a fund that invests in equity and debt instruments. The returns on the investment are dependent on the performance of the underlying fund. These plans offer higher returns than traditional plans, but they come with higher risks.

Child Education Plans

These plans are designed specifically to cater to the education needs of the child. The policyholder pays a regular premium, and the money is invested in a fund that aims to provide returns that are sufficient to meet the child's educational expenses. The policy comes with a maturity date that coincides with the time the child is expected to start higher education.

Child ULIP Plans

These are unit-linked insurance plans that provide life cover along with the option to invest in a variety of funds. The policyholder has the flexibility to choose the funds based on their investment objectives and risk appetite. These plans offer a good balance between risk and returns.

Child Endowment Plans

These are insurance plans that offer a guaranteed sum assured along with bonuses upon maturity of the policy or upon the child's death. The premiums paid towards the policy are invested in low-risk funds. These plans are ideal for parents who prefer low-risk investments and want a guaranteed sum assured.

Why Should You Buy Child Education Plans From Okbima?

It is best to buy child insurance and education plans through Okbima as we provide you with the following features.

  • Avail the expertise of skilled and experienced child insurance personnel and managers.

  • Receive the finest assistance in selecting and purchasing the best child education plans that may benefit you the most.

  • Apply for coverage, renew it, and even pay the payment with just one click. Get quick access to more than 30 insurance firms that specialize in child insurance plans.

  • okbima.com links potential child insurance buyers and sellers.

  • okbima.com makes the investment process considerably fair, swift, convenient, and cost-effective for you.

  • Get insurance through Okbima.com, a dedicated online platform, which is accessible around the clock

  • Best prices, fair deals, and 24*7 customer support.

  • okbima.com provides you with peace of mind by securing you with the best child insurance plans.

How to Choose The Best Investment Plans for a Child?

Choosing the best investment plan for a child is an important task, but here are some factors that you can consider to make an informed decision:

Investment Objective

You should first determine your investment objective, whether it is to save for the child's education or to provide a financial cushion in case of any unforeseen events.

Risk Appetite

Your risk appetite is an important factor in deciding the type of investment plan you should choose. If you are risk-averse, then you should opt for a low-risk plan, while if you have a high-risk appetite, then you can choose an

Returns

The return on investment is a crucial factor to consider when choosing an investment plan. You should compare the expected returns of different investment plans before making a decision.

Flexibility

You should also consider the flexibility of the investment plan. Some plans allow you to modify your investment amount, while others do not Choose a plan

Costs and Fees

You should be aware of the costs and fees associated with the investment plan, such as premium charges, administrative charges, and fund management charges. Choose a plan that has reasonable class="more-extra-txt">charges and does not eat into your returns.

Lock-in period

The lock-in period of the investment plan is also an important factor to consider. Some plans have a longer lock-in period, while others have a shorter period. Choose a plan that suits your investment horizon.

Reputation of the Company

Choose a plan from a reputed insurance company that has a good track record of performance and customer service.

What are The Features of a Child Insurance Policy?

The features of a child insurance policy can vary depending on the type of plan and the insurance provider, but here are some common features that you may find:

  • Life Cover

    A child insurance policy provides life cover, which means that the child is insured for a certain amount of money. In case of the child's death, the sum assured is paid to the nominee.

  • Maturity Benefit

    Some child insurance policies provide a maturity benefit, which is paid out to the policyholder at the end of the policy term. This can help the policyholder save for the child's future needs, such as education or marriage.

  • Premium Waiver

    Some child insurance policies come with a premium waiver benefit, which means that the premiums are waived off in case of the policyholder's death or disability. The policy continues, and the benefits are paid out as per the terms of the policy.

  • Savings/Investment Component

    Some child insurance policies also have a savings or investment component. The premium paid towards the policy is invested in a fund, which can be either low-risk or market-linked. The returns on the investment depend on the performance of the fund.

  • Tax Benefits

    Child insurance policies offer tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. The premiums paid towards the policy are eligible for tax deductions, and the maturity or death benefit is tax-free.

  • Flexible Premium Payment

    Some child insurance policies offer flexible premium payment options, such as monthly, quarterly, half-yearly, or yearly. The policyholder can choose the premium payment frequency at their convenience.

  • Additional Riders

    Some child insurance policies come with additional riders, such as accidental death benefits, critical illness coverage, or disability benefit. These riders provide additional protection to the child and the policyholder.

Benefits of Child Education Plan/Child Life Insurance

Child education plans and child life insurance policies offer several benefits, which are as follows:

Financial Security

Provides Financial Security

Child education plans and child life insurance policies provide financial security to the child and the family in case of the policyholder's death. The policy ensures that the child's education or other needs are taken care of even if the breadwinner of the family is no longer there.

Long-Term Goals

Helps in Achieving Long-Term Goals

Child education plans come with a long-term investment component, which helps in achieving long-term financial goals such as funding the child's education or marriage. The policyholder can choose the investment option as per their risk appetite and investment horizon.

Tax Benefits

Tax Benefits

Child education plans and child life insurance policies offer tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, of 1961. The premiums paid towards the policy are eligible for tax deductions, and the maturity or death benefit is tax-free.

Peace of Mind

Provides Peace of Mind

Child education plans and child life insurance policies provide peace of mind to the policyholder as they know that their child's future is secure, even if something unfortunate were to happen.
 

Premium Payment

Flexibility in Premium Payment

Child education plans and child life insurance policies offer flexibility in premium payment. The policyholder can choose the premium payment frequency as per their convenience, and some plans also offer a grace period for late payments.

Guaranteed Benefits

Guaranteed Benefits

Some child education plans and child life insurance policies offer guaranteed benefits, which means that the policyholder is assured of a fixed payout at the end of the policy term, irrespective of the market conditions.

Eligibility Criteria to Buy The Best Policy for Child in India

The eligibility criteria for buying the best policy for a child in India may vary depending on the insurance provider and the type of policy. However, here are some general eligibility criteria:

What Is The Right Time To Buy Child Policy In India?

The right time to buy a child policy in India depends on various factors, such as the child's age, financial goals, and investment horizon. Here are some scenarios when it may be suitable to buy a child policy:

Newborn Child

Newborn Child

If you have a newborn child, it may be a good time to start investing in a child policy, as you have a long investment horizon to accumulate funds for their future needs such as education or marriage.

School-Going Child

School-Going Child

If your child is already in school, you may want to consider buying a policy that offers a short-term investment horizon and aligns with your financial goals for their education.

Teenage Child

Teenage Child

If your child is a teenager, you may want to consider a policy that provides a combination of protection and savings benefits to meet their future financial goals.

Financial Goals

Anytime as per Financial Goals

The right time to buy a child policy also depends on your financial goals and risk appetite. You can buy a policy anytime based on your financial situation and investment horizon to meet your child's future financial needs.

Documents Required To Buy Child Insurance Plans/Child Education Plan

The documents required to buy child insurance plans or child education plans may vary depending on the insurance provider and the type of policy. However, here are some general documents that may be required:

  • Application form

    The policyholder needs to fill in the application form with their personal details and the child's details.

  • Identity Proof

    The policyholder needs to submit a self-attested photocopy of any government-issued identity proof such as an Aadhaar card, PAN card, Passport, Driving License, Voter ID card, etc.

  • Address Proof

    The policyholder needs to submit a self-attested photocopy of any government issued address proof such as Aadhaar card, Passport, Driving License, Voter ID card, Utility bills (Electricity, Gas, Water), etc.

  • Age Proof of Child

    The policyholder needs to submit a self-attested photocopy of the child's birth certificate, school leaving certificate, passport, etc.

  • Income Proof

    The policyholder needs to submit a self-attested photocopy of their income proof such as salary slip, Form 16, Income Tax Returns (ITR), etc. This may be required for some policies that have a minimum premium amount or for calculating tax benefits.

  • Medical Reports

    Some policies may require a medical examination of the child, and the policyholder may need to submit the medical reports along with the application form.

What Factors to Consider While Buying Child Education Plans?

Purchasing a child's education plan is a major decision that will impact your child's future. Before making an investment in one, it's crucial to take a variety of factors into account, including yields, liquidity, inflation, taxability and more. Read below to be aware of the factors that affect investing in child education plans

Financial Goals

Financial Goals

  • Identify how much money you need to save for your child's education.

  • Decide when you need the money to be available.

  • Determine how much risk you are comfortable with taking.

Financial Goals

Financial Goals

  • Identify how much money you need to save for your child's education.

  • Decide when you need the money to be available.

  • Determine how much risk you are comfortable with taking.

Investment Strategy

Investment Strategy

  • Choose an appropriate asset allocation for your child's education plan.

  • Consider the fees associated with the plan.

  • Research the track record of the investment options available.

Investment Strategy

Investment Strategy

  • Choose an appropriate asset allocation for your child's education plan.

  • Consider the fees associated with the plan.

  • Research the track record of the investment options available.

Fees and Charges

Fees and Charges

  • Understand the fees and charges associated with the plan.

  • Make sure you are comfortable with them before investing.

  • Evaluate whether the fees are reasonable for the services provided.

Fees and Charges

Fees and Charges

  • Understand the fees and charges associated with the plan.

  • Make sure you are comfortable with them before investing.

  • Evaluate whether the fees are reasonable for the services provided.

Performance of the Plan

Performance of the Plan

  • Review the performance of the plan over time.

  • Monitor the performance of the investments in the plan.

  • Compare the performance of the plan to similar plans.

Performance of the Plan

Performance of the Plan

  • Review the performance of the plan over time.

  • Monitor the performance of the investments in the plan.

  • Compare the performance of the plan to similar plans.

How To Buy The Best Child Education Plan In India

By entering the required information, you can compare and purchase the best child education plans at OKbima.com. Our professionals will respond immediately. Do you have any queries? Please don't be afraid to get in touch with us directly. Within a few hours, a member of our staff will be there for you to assist you.

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Child Plan Premium Payment Options?

In today’s world there are a variety of convenient payment options in order to make purchasing child plan premiums easy. To ensure that your family is always secure, use one of these premium payment methods.

  • With the help of digital payments like Paytm, PhonePe, UPI, and many more, you may quickly and simply pay your life insurance premium.

  • You can quickly and conveniently make the insurance minimum payment online using credit cards and debit cards.

  • Additionally, you have the option of using the Electronic Clearing System (ECS), which prevents fraudulent encashments brought on by instrument loss during transit.

Child Plans Comparison

The following are some of the best child plans offered in India:

Plan Type of Plan Entry Age Maturity
HDFC Life Youngster Udaan- Child Plan Endowment Plans with money back option 30 days - 12 years 75 years (maximum)
Bajaj Allianz Young Assure Endowment Plans 18 - 50 years 28 - 60 years
LIC Child Career Plan Money back Endowment Plan 30 days - 12 years 23 years - 27 years

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Child Insurance Blog/Articles/News 2024

Child Insurance FAQs

A child insurance plan combines insurance and investing into one package. Even if something were to happen to you, the life insurance component ensures that your child is financially secure. The investment part helps you to expand your finances in order to ensure the future of your child. You can use the money you save to help your child achieve his or her educational and career goals. Because investing allows you to expand your money, it is a better option than saving, which cannot offset inflationary consequences.

You can choose from the following types of child plans to safeguard your child's financial future: 1. Child Unit-Linked Insurance Plans (ULIPs): A ULIP is a combination of insurance and investing. Each year, the amount you pay to keep your plan operating is divided in half. One portion is used to pay for life insurance The other balance is invested in a variety of funds. 2. Children's Savings Accounts: You can invest in a child savings plan, but it is not connected to market returns or dangers. These plans include life insurance, maturity benefits, and tax benefits, making them a good and safe choice

This is the best place to begin answering this crucial question when selecting a child plan. It's critical to consider the type of schooling for which you're saving the corpus. Given today's competitive nature and the need of multidimensional development, it's critical that every child participates in extracurricular activities. If your child decides to pursue extra vocational training in a sector of their choice in the future, you must set aside sufficient funds.

Starting early allows you to invest for a longer period of time and build your money continuously. It occurs prior to deciding on a long-term investment strategy.

You must plan for your children's education expenses based on annual inflation rates when calculating how much to set aside.

Your plan's maturity phase is usually determined by your child's current age. Your child will be in college in 11 or 12 years if he or she is presently six years old. As a result, you must select a kid education plan with a minimum maturity period of ten to twelve years.

A partial withdrawal feature may be useful if you need cash quickly before your plan matures. The ability to withdraw money at regular intervals could be extremely beneficial in meeting escalating educational costs.

The majority of kid policies feature a premium waiver, which allows the policy beneficiary to continue to benefit from the plan after it has matured. If the policyholder dies, all outstanding premium payments are cancelled, and the nominee receives a guaranteed sum at maturity.

You can select one of them based on your risk tolerance. If you have a higher risk tolerance, you can invest in unit-linked child plans or equities for a period of 10 years or longer. If you're hesitant to incur investing risks, an endowment plan that is safeguarded against market volatility while still providing adequate coverage is a preferable choice. Endowment plans can be used for both savings and insurance.

Depending on the terms and conditions of your plan, you may be eligible for rewards. After the first year, bonuses begin to be credited, assisting in the fund's maximisation. A reversionary bonus might be straightforward or complex. A monetary incentive as well as a final bonus may be offered in some programmes.

Section 10D of the Income Tax Act of 1961 exempts the sum promised from taxation, including any bonus claimed on maturity or due to the insured's death. Under Section 80C, the insurance premium is also tax deductible.