Get Your Child's Future Insured With Child Insurance Plans
Online Child Plan, India – Overview
A child’s plan is a combination of insurance and savings. This plan insures your child’s future needs. Not only these plans provide financial benefit but also protect them in case of any unforeseen circumstances. Under online child plan India, the policyholder is the parent while the maturity amount is given to the child.
What is a child insurance plan?
A child insurance plan is an investment cum protection plan to provide protection to the child and create a financial back up for higher education, marriage, medical treatment, etc. On maturity, the lump sum amount is paid to the child to fulfill their requirements. If the parent dies, the amount is paid off to the nominee, who is the caretaker of the child.
What are the different types of online child plans, India?
They are:-
Single premium child plan – The parent needs to pay once for a single premium child plan
Regular premium child plan – The parent needs to pay at regular fixed intervals
Child ULIP – They offer high insurance coverage, disciplined investments, and benefits of the equity market.
Features of child insurance plans
The following features are mentioned below:-
Partial withdrawal – These plans provide a feature that enables parents to withdraw the amount according to the child’s needs instead of a lump sum amount. So many plans provide such a benefit.
Flexible policy term – The plans provide flexible plan tenure according to the child’s age. If the child is eight years old, then the parents can choose a ten-year policy term.
Maturity payment – The parent can choose a maturity payout amount according to their needs. If the parents want, they can choose regular payout options instead of lump-sum benefit.
Benefits of child insurance plan in India
Below are the benefits of online child plans in India:-
Lump-sum amount for a child’s education – These child insurance plans help in saving an amount to meet the expenses such as for higher education, marriages, etc.
Medical treatment – If the child meets with an unfortunate accident or requires medical treatment due to any major or minor ailments, then child insurance plan payouts help in the treatment and reduce financial burden.
Becomes a support system of the child in the absence of parents – On the unfortunate death of the parents, there are various child insurance plans that come with an online premium waiver benefit. It waives off the remaining premium, and the child gets the full sum assured amount.
Loan collateral – These plans can act as collateral for loans.
What are the exclusions of child insurance plans?
The following exclusions need to be considered:-
If the policyholder dies due to:-
Drug or alcohol
Suicide or self-harm
Adventure sports
Criminal activities
then the lump sum amount will not be paid.
What tax benefits can be availed under child policy?
The premiums paid are eligible for tax deductions under section 80C of Income Tax Act, 1961
Conclusion
With the surging costs of higher education, the child plan becomes a must-buy for the parents. Further, it removes the financial burden from the parents when the child opts for higher education or is required to undergo any medical treatment.
