List of 10 Best Child Insurance Plans in India You Must Buy One in 2022
Life insurance for children will give a stable financial future to every child in the absence of their parents. With the best life insurance for children, the parents can be assured that all the requirements of their children will be taken care of properly. Best child insurance plans will strengthen the child’s financial future and offer flexible payouts at intervals so that every child can fulfill his/her desire and achieve the milestones of life.
Why you should buy a Child Insurance Policy in 2022?
A child plan policy will not only safeguard your child’s future but also offers some added advantages as mentioned below:-
- Guaranteed Benefit: A child insurance plan offers a guaranteed child education plan that you may not get with other types of investments. Many child education programs come with an in-built incentive called a premium exemption benefit. This benefit offers to pay a maturity benefit irrespective of whether the parent is alive at the time of maturity or not. Thus, by opting for a childhood life insurance policy, you can secure the future of your child.
- Dual Benefit: The best child education insurance plan is a dual plan (investment-cum-insurance plan). One part is the formation of a financial corpus, especially for kids, and the second one offers peace of mind.
List of 10 Best Child Insurance Plans in India for 2022
There are many insurance policies available in the market but how would you know which is the best child insurance plan in India. Here we listed out some of the best child insurance plans with their details that will help you to make the right decision.
- HDFC Life Youngstar Super Premium Plan
- ICICI Pru Smart Kid Solutions
- Bajaj Allianz Young Assure Plan
- Max Life Shiksha Plus Super Plan
- LIC New Children Money Back Plan
- Aegon Life Rising Star Insurance Plan
- Bharti AXA Life Child Advantage Plan
- Birla Sun Life Vision Star Plan
- Future Generali Assured Child Education Plan
- Kotak Head Start Child Assure Plan
1. HDFC Life Youngstar Super Premium Plan
Are you looking for the best insurance for your child? This is the best kid’s policy that offers investment options and insurance coverage. This unit-linked plan can be used at various stages of your child, including higher education, marriage, etc. Some features are,
- This plan can be customized as per your child’s various requirements.
- In case of death of the life assured this plan used to pay 100% of the future premiums.
- 50% of the premiums are charged as annual income if the parent dies during the term policy. The parents prefer the ‘Save-n-Gain’ payment.
- Four investment funds are available.
- The policy tenure periods are 10 years, 15 years, and 20 years.
2. ICICI Pru Smart Kid Solutions
This is a unit-linked plan that offers comprehensive protection to your child for a better future. Some salient features of this plan are,
- Choose an investment strategy as per your child’s evolving needs.
- This plan offers all-around protection to your child. Your child will get a lump sum amount in case of an unfortunate incident during the policy term.
- This plan offers two premium payment options (regular pay and single pay).
- The benefits of loyalty addition and wealth boosters are offered under this plan.
- The range of policy period is between 10-25 years.
3. Bajaj Allianz Young Assure Plan
This is a traditional savings plan that inspires your child to achieve his/her financial goals. Some features of the plan are,
- This plan offers financial security along with the benefit of life cover.
- The plan offers rider benefits to enhance coverage.
- Multiple premium payment and policy term options.
- Offers a rebate for a higher sum assured.
- At the time of maturity, the insured person gets a vested bonus plus a terminal bonus.
4. Max Life Shiksha Plus Super Plan
This plan helps you secure a fund for your child’s future education and other needs. Some features are,
- This plan offers comprehensive coverage for your family along with your child’s education.
- The range of policy terms is between 15-25 years.
- This plan comes with 6 fund options.
- After the completion of the 11th year, additional units will be added to your fund.
- This plan offers maturity benefits at the end of the policy term.
- In the case of financial urgency, you are eligible for partial withdrawal.
5. LIC New Children Money Back Plan
Are you looking for the best children’s money-back policy plan? Then, the LIC New Children Money Back plan could be your utmost choice as it meets all multiple needs of growing children, including their education, wedding, etc. Some features are,
- This plan offers a maturity benefit equivalent to the sum assured and applicable bonuses.
- After the certain age of the insured person, this plan offers a survival benefit (equivalent to 20% of the basic sum assured).
- LIC provides a rebate on a high premium amount.
- You can take a loan under this policy.
- This plan offers a death benefit to the nominee.
6. Aegon Life Rising Star Insurance Plan
This unit-linked plan protects your child against any kind of emergency. Some key features are,
- This plan offers financial security for your child’s education by triple benefit insurance coverage, till your child turns 25 years.
- This plan comes with 4 different fund options.
- You are eligible for withdrawals after the completion of 5 years.
- This plan offers maturity benefits and death benefits.
- You can pay an add-on premium in the form of top-ups.
7. Bharti AXA Life Child Advantage Plan
Let’s take a look at some of the features of this plan.
- This non-linked plan offers two payout options (money back and endowment) based on your child’s needs and requirements.
- The plan comes with a built-in premium waiver benefit.
- This plan allows you to choose your policy term.
- The tax benefit is applicable under section 80C of the Income Tax Act.
- The minimum entry age is 18 years, and the maximum age is 55 years for this plan.
8. Birla Sun Life Vision Star Plan
This plan offers assured payouts for financing your child’s education and securing the child’s future even in your absence. Some features are,
- This plan comes with death benefits and maturity benefits.
- The accrued bonuses will be paid on the date of maturity.
- Regular payouts after 5 years of the policy term.
- You can enhance your coverage by choosing various additional riders.
- If you stop paying premiums after two years, your policy will not lapse but continue on a reduced Paid-Up basis.
9. Future Generali Assured Child Education Plan
This non-linked plan offers guaranteed payouts at various stages of your child’s life, including education, marriage, etc. Some prominent features are,
- This plan encourages you to save systematically until your child turns 17 years old for his/her higher education fees.
- This plan embraces you with three options to receive guaranteed payouts depending on your child’s education goals. In case of your sudden demise, your child’s education won’t hamper.
- By opting for various riders, you can strengthen your plan.
- This plan offers death and maturity benefits.
- The minimum entry age for parents is 21 years, and the maximum age is 50 years.
10. Kotak Head Start Child Assure Plan
This plan takes care of all financial needs of your child in the absence of policyholders. Some features are,
- This plan comes with 7 different fund options.
- Through triple benefits, this plan ensures the financial security of your child.
- With the help of this plan, you can create wealth for your child’s future.
- This plan offers maturity benefits (the full fund value) to accomplish the needs of your child.
These are the top 10 insurance plans for your children in 2022. Before committing any investment, go through the terms and conditions of each plan and choose the best life insurance for children. Then, make your investment plan wisely to ensure that your child is secured in the best possible way.
Child Insurance Plans FAQs
Which is the best insurance plan for a child?
Based on the different features and benefits, following are the 10 best insurance plans for a child in India:
1. Aegon Life Rising Star Insurance Plan
2. Bajaj Allianz Young Assure Plan
3. Bharti AXA Life Child Advantage Plan
4. Birla Sun Life Vision Star Plan
5. Future Generali Assured Child Education Plan
6. HDFC Life Youngstar Super Premium Plan
7. ICICI Pru Smart Kid Solutions
8. Kotak Head Start Child Assure Plan
9. LIC New Children Money Back Plan
10. Max Life Shiksha Plus Super Plan
What is the age limit to buy a child insurance policy?
The general age limit to buy a child insurance policy is 18 years to 21 years. However, some insurers offer such policies with a minimum entry age of 21 years too.
What are the top advantages of investing in a child insurance plan?
Planning for your child’s future with a child insurance plan can help you gain many advantages like:
1. Secure Child’s Future
2. Takes Care of Education Expenses
3. Coverage Against Critical Illness
4. Financial Aid after Parents’ Death
5. Teaches to Save
6. Collateral for Loans
7. Tax Benefits
Why should you buy a Child Insurance Plan?
The prime reason to buy a child insurance plan is to secure the future of your child. Besides, a good child insurance plan will help to provide financial stability to your child, as he/she grows up. Moreover, buying a child plan helps fetch maturity benefit add-on riders, and tax benefits. Buying a child insurance plan offers a dual benefit of insurance as well as investment.
How is the premium computed in Child Insurance?
If you choose an endowment child plan, then you will have a choice to pay a single lump-sum premium, regular premium, or limited premium monthly, half-yearly, or yearly. If you choose a ULIP, you can choose to pay the premium in a lump sum amount, which is taxable, or periodically to save the tax. On the other hand, if you choose a plan with a waiver of the premium option, then the future premium gets waived off in case of the parent’s death.
What is the right time to buy a Child Insurance Policy?
One must plan for a child’s future as soon as one becomes a parent. Besides, take into consideration the following factors to choose the right time to buy a child insurance policy:
1. Cost of Higher Education
2. Rate of Inflation
3. Your Current Financial Condition and Liabilities
4. Time Range for Investment
5. Retirement Planning
6. Savings from your Salary
Do child insurance policies provide any tax benefits?
Yes, almost all child insurance policies provide tax benefits on the premium amount under Section 80C of the Income Tax Act of 1961. Moreover, there is a tax benefit on the maturity amount and income from the plan under Section 10 (10D).
How to choose the right child insurance plan?
There are several child insurance plans in the market, so it may become a confusing task to pick the right one. The following tips will help choose the best child plan in India:
1. Start with an Early Planning
2. Identify the Financial Needs of Your Child
3. Compare Features of Different Child Plans
4. Opt for a Plan with Premium Waiver Benefit
5. Estimate the Total Sum Assured
6. Simple Endowment Plan to Avoid the Risk
7. Equity Lined Plans if Ready to Take the Risk