How to Choose Best Child Plan in India

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How To Choose Best Child Plan In India ?
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There are two types of Child policies in India-
Child ULIPs Child Endowment Plan. The plan you
should select is usually dependent on the amount
of coverage you want and the tenure of the
policy. For instance, if your child is 4 years
old and you plan to provide him higher studies
after say, 15 years which costs Rs. 20 lakh
today, then you can imagine how much would it
cost after 15 years. Therefore, it becomes
necessary to invest for your child today in order
to have funds available at the time when the
actual need arise.
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Advantages of Child Insurance Plans
There are many benefits that you will get after
buying a plan. Mentioned below are the major
benefits that you will get along with a best
plan. Flexibility to choose Basically life
insurance for children provides you the
flexibility to choose according to your economic
status and superficial monetary goals. The rate
of premium can also be settled as per your
interest. Maturity Benefit At the time of
maturity, the sum assured amount and a definite
partaking sum will be paid to the parent or
guardian. In the case of early death of the
policy holder, the child is allowed to receive
all the benefits of the plan (if the rider is
attached to the policy). Tax benefit Yes, it is
true that a child policy in India provides tax
benefit that can be availed on maturity/death
claim profits under Section 10 (10D) and
assumption from income for the expenses of
premium under Sec. 80(C).
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Importance of Child Plans
Security Ensures your child's future needs and
allows you to plan in a better way to stabilize
your future financially. Multiple needs
fulfilled All future needs of your child whether
its education, marriage, or business are covered
and looked after Liquidity You have the
provision of liquidizing your plan through
partial withdrawals Tax Exemption You get tax
deduction for the premium you pay under Section
80C and any income from the plan is tax-free
under Section 10 (10) D of the Income Tax
Act Riders You can buy the riders like
accidental death benefit, income benefit and
critical illness benefit.
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Tips To Consider While Buying Child Insurance
Plan
It is advisable for you to calculate the required
funds for your child education and marriage
before going to buy coverage for children. With
this additional information, you would be able to
choose the best cover and can decide easily on
the related premium amount and the time period of
the child life plan. In some products you will
get additional benefits such as accident cover,
health, etc. You must compare child policies of
different insurance companies on our site because
with it, you can compare the premium amount per
year and the returns presented by different
companies. Make sure to insure your life also.
It is beneficial to buy a plan which has a built
in clause premium waiver for future. This would
guarantee that the plan continues if you are not
there to take care of it and your child would be
able to receive assured sum amount at maturity.
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It is advisable for you to check the company's
record before purchasing child insurance. Buy the
plan in the parent's name instead of a child,
since the child anyway has no dependants. But if
you are planning to buy the best one in the
child's name, then ensure that it has a built-in
feature of premium waiver in case of death of the
parent. This will protect your child from the
burden of heavy premium payments and he will
continue to reap the benefits of the plan. Also
do a check out the tax benefits of the plan.It is
an incredible financial investment planning tool
for child education / marriage / unforeseen
expenses etc. It assists in meeting the child's
monetary needs and provides safety in the form of
a life insurance plan.
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Child Plans and Riders
For a great future of your ward, you must buy the
best child plan. By comparing service and free
quotes, you will get the best and affordable
child plan that meets your requirements easily.
An online policy is a good option, it will assist
you in comparing different plans of the top
companies. It is worthwhile to look for best plan
with riders and related features which make your
plan more useful and effective. Riders provide
additional benefits at low premiums. Some
companies are offering riders as a part of the
policy, whereas in few companies it is
optional. Riders provide a more secure and
financially stable life to your ward. It is
advisable to select a rider, according to your
requirements. Don't think about the extra premium
that you are paying for riders, consider the
benefits that you will get and make your policy
more powerful.
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Documents Required For Child Insurance Plans
Age Proof Birth Certificate, 10th or 12th mark
sheet, Driving License, Passport, Voter ID, etc.
(Any One) Identity Proof Driving License,
Passport, Voter ID, PAN Card, Aadhar
Card Address Proof Electricity Bill, Telephone
Bill, Ration Card, Driving License, Passport,
should clearly mention the permanent
address. Income Proof Income proof specifying
the income of the person buying the
insurance Proposal Form Duly filled in proposal
form is required
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